Bankruptcy and Qualifying for private student loan
Started by chirodocjrd
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Why do grad plus loans not apply to you?
Not everyone can just sign up for grad plus loans. You need to have good credit to qualify. Someone with a bankruptcy on their credit report is not going to be eligible.
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You don't need good credit you just need "non-adverse" credit. Having bankruptcy over 5 years ago does not qualify as adverse credit therefore the OP qualifies without a cosigner. Though the OP may just be on the borderline depending when the event happened.
"Not be in default on a federal student loan. You cannot have any debts that are delinquent 90 days or more or have any defaulted loans, outstanding tax liens, unpaid judgments, or any bankruptcy, foreclosure or wage garnishment within the past five years."
EDIT: Never mind, the rule won't apply to you if it's over 5 years. However, others may want to see this:
You can always get a co-signer. It's not that big of a deal to get student loans from the Fed even if you have something bad in your credit history. Now if you don't have someone willing to cosign, that's a whole other problem.
http://www2.ed.gov/offices/OSFAP/DirectLoan/applying.html
"Credit check & endorser alternative
When you apply for a Direct PLUS Loan, the Department will check your credit history. To be eligible to receive a PLUS loan, you must not have an adverse credit history. If you are determined to have an adverse credit history, you may still receive a Direct PLUS Loan if you obtain an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay the loan. If you are a parent borrowing on behalf of your dependent student, the endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan. In some cases, you may also be able to obtain a Direct PLUS Loan if you document to our satisfaction that there are extenuating circumstances related to your adverse credit history."
Chances are good you'll need a cosigner even if you decided to go private.
You can always get a co-signer. It's not that big of a deal to get student loans from the Fed even if you have something bad in your credit history. Now if you don't have someone willing to cosign, that's a whole other problem.
http://www2.ed.gov/offices/OSFAP/DirectLoan/applying.html
"Credit check & endorser alternative
When you apply for a Direct PLUS Loan, the Department will check your credit history. To be eligible to receive a PLUS loan, you must not have an adverse credit history. If you are determined to have an adverse credit history, you may still receive a Direct PLUS Loan if you obtain an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay the loan. If you are a parent borrowing on behalf of your dependent student, the endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan. In some cases, you may also be able to obtain a Direct PLUS Loan if you document to our satisfaction that there are extenuating circumstances related to your adverse credit history."
Chances are good you'll need a cosigner even if you decided to go private.
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