Need based FA Forum

[Lear22]

I am wondering: if my numbers are not high enough to recieve merit based aid, will I still be granted need based aid from schools? (Meaning outside federal aid and student loans) I understand that similarly to undergrad, private schools will have more $ than public, but if my FAFSA shows that I qualify for need based aid I will most likely recive it from schools?

Any other help or advice on need based aid would be greatly appriciated.


Thanks!

[rinkrat19]

There is very little need-based aid outside HYS. A lot of schools say they take need into consideration, but anecdotally, scholarship award amounts from those schools seem to track pretty closely with what a person would expect with their numbers, regardless of their level of need.

I've heard of a few exceptions for people with extreme need and extraordinary backgrounds (think child solider turned refugee or something, not just growing up in a trailer park), but it's best not to count on it.

[Lear22]

There is very little need-based aid outside HYS. A lot of schools say they take need into consideration, but anecdotally, scholarship award amounts from those schools seem to track pretty closely with what a person would expect with their numbers, regardless of their level of need.

I've heard of a few exceptions for people with extreme need and extraordinary backgrounds (think child solider turned refugee or something, not just growing up in a trailer park), but it's best not to count on it.

I see.
I just now started looking at loan amounts and such. Should regular federal student loans (not the grad plus as I am not qualified for them) be okay for me to cover COA in case I get little merit based aid?

[rinkrat19]

There is very little need-based aid outside HYS. A lot of schools say they take need into consideration, but anecdotally, scholarship award amounts from those schools seem to track pretty closely with what a person would expect with their numbers, regardless of their level of need.

I've heard of a few exceptions for people with extreme need and extraordinary backgrounds (think child solider turned refugee or something, not just growing up in a trailer park), but it's best not to count on it.

I see.
I just now started looking at loan amounts and such. Should regular federal student loans (not the grad plus as I am not qualified for them) be okay for me to cover COA in case I get little merit based aid?

Why do you think you don't qualify for Grad Plus?

There are caps on federal loans (I think $20,500/year?). They won't cover COA.

[Lear22]

There is very little need-based aid outside HYS. A lot of schools say they take need into consideration, but anecdotally, scholarship award amounts from those schools seem to track pretty closely with what a person would expect with their numbers, regardless of their level of need.

I've heard of a few exceptions for people with extreme need and extraordinary backgrounds (think child solider turned refugee or something, not just growing up in a trailer park), but it's best not to count on it.

I see.
I just now started looking at loan amounts and such. Should regular federal student loans (not the grad plus as I am not qualified for them) be okay for me to cover COA in case I get little merit based aid?

Why do you think you don't qualify for Grad Plus?

There are caps on federal loans (I think $20,500/year?). They won't cover COA.

Because of different credit related issues. Based on what I read, I will get turned down. I didn't see anywhere that they has exceptions or look at loan applications on a case by case basis.

[rinkrat19]

Because of different credit related issues. Based on what I read, I will get turned down. I didn't see anywhere that they has exceptions or look at loan applications on a case by case basis.

You have to have pretty extremely bad credit to not qualify. Obviously I don't know your situation, but the exact list of what disqualifies you is:

A credit check will be performed during the application process. If you have an adverse credit history, you may still receive a Direct PLUS Loan by obtaining an endorser who does not have an adverse credit history or documenting to the U.S. Department of Education’s satisfaction extenuating circumstances relating to your adverse credit history. If you are a parent borrower, the endorser cannot be the child on whose behalf you are borrowing.

Adverse Credit History

A credit history is a summary of your financial strength, including your history of paying bills and your ability to repay future loans. To qualify for a PLUS loan, you cannot have an adverse credit history. Your credit history may be considered adverse if you are experiencing any of the following credit conditions:

Bankruptcy discharge within the past 5 years.
Voluntary surrender of personal property to avoid repossession within the last 5 years.
Repossession of collateral within the last 5 years.
Foreclosure proceedings started.
Foreclosure within the last 5 years.
Conveying your real property that is subject to a mortgage (by deed) to your lender to avoid foreclosure (deed in lieu of foreclosure).
Accounts currently 90 days or more delinquent.
Unpaid collection accounts.
Charge offs/write offs of federal student loans.
Wage garnishment within the last 5 years.
Defaulting on a loan, even if the claim has been paid.
Lease or contract terminated by default.
County/State/Federal tax lien, within the past 5 years.

[Lear22]

Because of different credit related issues. Based on what I read, I will get turned down. I didn't see anywhere that they has exceptions or look at loan applications on a case by case basis.

You have to have pretty extremely bad credit to not qualify. Obviously I don't know your situation, but the exact list of what disqualifies you is:

A credit check will be performed during the application process. If you have an adverse credit history, you may still receive a Direct PLUS Loan by obtaining an endorser who does not have an adverse credit history or documenting to the U.S. Department of Education’s satisfaction extenuating circumstances relating to your adverse credit history. If you are a parent borrower, the endorser cannot be the child on whose behalf you are borrowing.

Adverse Credit History

A credit history is a summary of your financial strength, including your history of paying bills and your ability to repay future loans. To qualify for a PLUS loan, you cannot have an adverse credit history. Your credit history may be considered adverse if you are experiencing any of the following credit conditions:

Bankruptcy discharge within the past 5 years.
Voluntary surrender of personal property to avoid repossession within the last 5 years.
Repossession of collateral within the last 5 years.
Foreclosure proceedings started.
Foreclosure within the last 5 years.
Conveying your real property that is subject to a mortgage (by deed) to your lender to avoid foreclosure (deed in lieu of foreclosure).
Accounts currently 90 days or more delinquent.
Unpaid collection accounts.
Charge offs/write offs of federal student loans.
Wage garnishment within the last 5 years.
Defaulting on a loan, even if the claim has been paid.
Lease or contract terminated by default.
County/State/Federal tax lien, within the past 5 years.

I have the bolded right now ( been unemployed for a long time... ) but what I am confused by is this: if by the time I apply I resolved the 90+ days of being late AND paid off any collection notice on my report I should be okay? I can try and do that in the next few months but I'm unsure if they're looking at if it ever happened in the past of if its happening right now i.e at when you apply.

[rinkrat19]

Because of different credit related issues. Based on what I read, I will get turned down. I didn't see anywhere that they has exceptions or look at loan applications on a case by case basis.

You have to have pretty extremely bad credit to not qualify. Obviously I don't know your situation, but the exact list of what disqualifies you is:

A credit check will be performed during the application process. If you have an adverse credit history, you may still receive a Direct PLUS Loan by obtaining an endorser who does not have an adverse credit history or documenting to the U.S. Department of Education’s satisfaction extenuating circumstances relating to your adverse credit history. If you are a parent borrower, the endorser cannot be the child on whose behalf you are borrowing.

Adverse Credit History

A credit history is a summary of your financial strength, including your history of paying bills and your ability to repay future loans. To qualify for a PLUS loan, you cannot have an adverse credit history. Your credit history may be considered adverse if you are experiencing any of the following credit conditions:

Bankruptcy discharge within the past 5 years.
Voluntary surrender of personal property to avoid repossession within the last 5 years.
Repossession of collateral within the last 5 years.
Foreclosure proceedings started.
Foreclosure within the last 5 years.
Conveying your real property that is subject to a mortgage (by deed) to your lender to avoid foreclosure (deed in lieu of foreclosure).
Accounts currently 90 days or more delinquent.
Unpaid collection accounts.
Charge offs/write offs of federal student loans.
Wage garnishment within the last 5 years.
Defaulting on a loan, even if the claim has been paid.
Lease or contract terminated by default.
County/State/Federal tax lien, within the past 5 years.

I have the bolded right now ( been unemployed for a long time... ) but what I am confused by is this: if by the time I apply I resolved the 90+ days of being late AND paid off any collection notice on my report I should be okay? I can try and do that in the next few months but I'm unsure if they're looking at if it ever happened in the past of if its happening right now i.e at when you apply.

Pretty sure, yeah. They don't care so much if you had a bill go unpaid in the past as long as you're ok in the present. It's not like your credit score where it takes longer for something bad to fall off your record.

[Lear22]

I see. This is very helpful and also gives me some hope that I will be able to get approved if I manage to get these in order. I was worried that they are looking at what happened in the past so even if I get the accounts current and pay off collection notices I'll still be denied because it's sitting on my report..

I also read some of the very helpful thread about the "truth of grad plus loans" at http://www.top-law-schools.com/forums/v ... 5&t=154130 and it appears there's still hope.

I just hope that my assessment about what's currently on the report vs. what was there in the past is correct.