Grad PLUS Loans and Adverse Credit History

[Calid90]

I know many have talked about Grad Plus Loans and Bad Credit but I think the law changed recently so I wanna double check some things are still true:

1) I will qualify for a Grad Plus Loan as long as my balance on charged off accounts within the past TWO years is less than about $2000.

2) The unpaid collection accounts that occurred prior to TWO years before applying for the loan do not count against me unless they are: bankruptcy, foreclosure, etc.

If the two above statements of true then I am all set. However, if they include ALL past charged off accounts I will definitely not qualify.

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[Arjw2]

Where did you see that law changed? I got my masters degree in 2016 and my charge off was less than $2000 and I still didn't qualify. The good news is, you just have to settle those debts .. you don't have to pay them in full. Most companies will let you settle debts for like 75% less than the original payment amount ... plus if you're starting pharmacy school in august you have a few months to do that and still get approved for the grad plus. That's what I had to do


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[Calid90]

I read this article as well as the official guidelines on the StudentAid website:

http://www.studentloanborrowerassistance.org/new-rules-plus-loan-credit-checks/

https://studentloans.gov/myDirectLoan/whatYouNeed.action?page=credit

My issue is that while both websites specify the two year time limit from the credit check, the first says the limit is $2000 and the second says the limit is $0.00. So is it safe to assume that as long as I settle my $1200 charge off from the last two years I will be all set? I have another issue from 2014 for $3000, and I want to make sure I do not also have to settle that debt.

Thanks for your response!

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[beaglesbagles]

The law is still the same and I have the same question.

Do charge offs/collections older than 3 years count against you IF the collection account/charge off is still being reported? Collections often change hands and make accounts appear younger than their normal age. For example, a 5 year old debt from 2015 gets purchased in 2017, and resold and purchased again in 2018, and it looks like you have a collection account that's two years old.

I am in the same situation as OP and wondering if I have grounds for an appeal since all my debts are older than 3 years old. Settling isn't an option at the moment, so gearing up for an appeal.

 

[mentos]

The law is still the same and I have the same question.

Do charge offs/collections older than 3 years count against you IF the collection account/charge off is still being reported? Collections often change hands and make accounts appear younger than their normal age. For example, a 5 year old debt from 2015 gets purchased in 2017, and resold and purchased again in 2018, and it looks like you have a collection account that's two years old.

I am in the same situation as OP and wondering if I have grounds for an appeal since all my debts are older than 3 years old. Settling isn't an option at the moment, so gearing up for an appeal.

Please don't tell us you're taking out grad plus loans to attend pharmacy school?

 

[beaglesbagles]

Please don't tell us you're taking out grad plus loans to attend pharmacy school?

I'm actually already in medical school going into MS2, and this question applies to medicine as well!

 

[mentos]

I'm actually already in medical school going into MS2, and this question applies to medicine as well!

That's good. I assumed pharmacy because this is the pre-pharm forum. Good luck!

 

[beaglesbagles]

That's good. I assumed pharmacy because this is the pre-pharm forum. Good luck!

I've reposted it to the medical student forum, but if anyone wants to respond to the OP I'd be all ears.

 

[JustFillIt]

More rif raf joining the pharmacy profession.

How about you get your crap together before you make more poor financial decisions?

Or - does an easy ride with grad plus loans, and avoiding work, sound too alluring to you at this time?

 

[beaglesbagles]

More rif raf joining the pharmacy profession.

How about you get your crap together before you make more poor financial decisions?

Or - does an easy ride with grad plus loans, and avoiding work, sound too alluring to you at this time?

You should blame the government for giving out massive loans and incentivising schools to charge ever more tuition. Not the average joe trying to better themselves with further education.

 

[JustFillIt]

You should blame the government for giving out massive loans and incentivising schools to charge ever more tuition. Not the average joe trying to better themselves with further education.

Oh I certainly do blame the government and schools. But we, as individuals, should take a little responsibility for our behavior too.

Having poor credit history - then taking years off of work to walk into borrowing hundreds of thousands of dollars in high interest consumer loans does not inspire confidence in that individuals decision making.

Passive complacency, with an air of ignorance/laziness does not impress. Is this statement making a lot of assumptions? Hell yes it is.... however my profession and livelihood is being destroyed by this non-sense... can you say the same about your profession?

 

[beaglesbagles]

Oh I certainly do blame the government and schools. But we, as individuals, should take a little responsibility for our behavior too.

Having poor credit history - then taking years off of work to walk into borrowing hundreds of thousands of dollars in high interest consumer loans does not inspire confidence in that individuals decision making.

Passive complacency, with an air of ignorance/laziness does not impress. Is this statement making a lot of assumptions? Hell yes it is.... however my profession and livelihood is being destroyed by this non-sense... can you say the same about your profession?

Potentially, yes. Case in point: Burrell School of Osteopathic Medicine. It is for profit, and has a huge attrition rate. There are many schools like this popping up all over the US.

 

[JustFillIt]

Potentially, yes. Case in point: Burrell School of Osteopathic Medicine. It is for profit, and has a huge attrition rate. There are many schools like this popping up all over the US.

Then let’s see how you feel about it in 15 years. Perhaps your level of frustration will increase as well.

My position stands. The vast majority of people with poor credit history have no business drawing massive loans for pharmacy school. It’s just a downright stupid idea, as things stand now, and it just needs to be known.

 

[beaglesbagles]

Then let’s see how you feel about it in 15 years

Pharmacists in Ireland (where I live) are doing well. Consider immigrating if you can't earn enough. There is more regulation in Canada, Europe and Australia so you have options.

 

[JustFillIt]

Pharmacists in Ireland (where I live) are doing well. Consider immigrating if you can't earn enough. There is more regulation in Canada, Europe and Australia so you have options.

Immigrating to Ireland? Not an option for me and my family. And I am fortunate to have secured gainful employment at this time. However I’m sure you could convince many “inspired young youth” with poor credit and no job options/history in our country to move to Ireland to “pursue their dreams”... it would be a beautiful story...

This thread is from 2017?

 

[beaglesbagles]

Immigrating to Ireland? Not an option for me and my family. And I am fortunate to have secured gainful employment at this time. However I’m sure you could convince many “inspired young youth” with poor credit and no job options/history in our country to move to Ireland to “pursue their dreams”... it would be a beautiful story...

Your sarcasm is duly noted, but it is in fact a reality for a lot of graduates who cannot pay their debts. I'll point you to reddit.com/r/studentloandefaulters

 

[JustFillIt]

Your sarcasm is duly noted, but it is in fact a reality for a lot of graduates who cannot pay their debts. I'll point you to reddit.com/r/studentloandefaulters

Which is my point exactly. These people should not have made the series of decisions which they made. It’s disgusting..

Thanks for putting a nice little bow on the top of my arguement