Grad Plus and "closed by grantor" accounts

[quadruple agent]

Hello, everyone--

At the link below is the definition of "adverse credit history" WRT Grad Plus loans.
http://www.law.cornell.edu/cfr/text/34/685.200 (search "adverse")

And here we have a leaflet from ed.gov saying much the same thing:
http://www.ifap.ed.gov/dlbulletins/attachments/DLB0703Attach.pdf

Question 1.

I have a credit card that reports as "closed by grantor" to all three credit bureaus. I am now current with my payments, which go to the credit card company itself, so everything else in the entry reads fine, "pays as agreed," etc. Nothing says "charge off."

Is there any possible way that this card could show up as a default during the Grad Plus credit check? I assume they mean default as in judgment...thoughts?

Question 2.

I presume "90 days delinquent" means not CURRENTLY delinquent? Will formerly delinquent, now current accounts cause a problem?

Question 3.

If one must resort to a creditworthy endorser, must the endorser be employed? I do have a candidate in mind, but this person is receiving (a decent income from) Social Security and pension.

Question 4.

Any other thoughts on Grad Plus and credit you'd like to share?

Thank you for your time. I welcome all responses, but answers from people with first-hand knowledge would be most helpful. You can email [email protected] if you'd like to reply anonymously. Thanks!

And thank God I have these problems...

---

Members don't see this ad.

 

[quadruple agent]

For the interested, some kind person posted an answer over on CreditBoards: http://creditboards.com/forums/index.php?showtopic=527625

 

[Pose]

If you pay the closed accounts off before applying for the Grad PLUS loans, or at least enter into a payment plan, you should be approved. Even if they have a history of being (i.e. are not currently) 90+ days late. This was true for me at least. Good luck!

 

[quadruple agent]

Thank you for replying, Pose. If you don't mind saying, were you in fact approved with a (current) payment plan in place?

I plan to pay it off before school begins, but to pay it off before applying for loans would be a real stretch, because I will have to liquidate an asset I am currently using to do so.

 

[quadruple agent]

Hello again. Though I'm not celebrating until I sign the notes, it appears I've been approved. Here is a list of the problems on my credit that did NOT prevent me from getting approved.

1) Perkins 120+ past due that never went to collections...brought to zero balance via consolidation.

2) Numerous paid collections deleted from report.

 

[quadruple agent]

3) 2 *paid* collections still on report, one from original creditor, one from collection agency.

3) 3 credit cards closed by grantor, now current, no payment plan

4) 1 credit card closed by grantor, sent to collections but no charge off reported, no collection reported, now current via payment plan with original creditor

5) Various other ugly lates now current

The plural of anecdote isn't data, but hopefully this will prove helpful to others going through this process as we speak (May 2014).