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Can a gradplus cosigner have no credit and no income?

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QuantumMan

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I would be unable to get gradplus loans for med schools as I do have an adverse credit history due to a chapter 7 bankruptcy from a prior poor financial decision.

But, I know that my options for getting gradplus include either waiting 5+ years and then reapplying to medical school or getting a cosigner.

My mother is willing to cosign, but there is an issue. She has absolutely no credit history, she has no debt, nothing. She is also on disability and has no work related income. can she be a valid cosigner?

What are the requirements that a GradPlus cosigner must have? Any good links you can refer me to?
 

ndafife

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Short answer: No

Long answer: The point of a cosigner is to link someone with bad/inadequate credit history to someone with good credit history/lots of money. You have had issues in the past paying back money, so the bank needs to have someone with a history of paying back money also responsible for you loan. Your mom has no such history (in fact most people without a credit history often need a cosigner).
 

BurghMed

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A cosigner will likely need to have great credit in your situation, as the bank needs to know whether the loan they're giving to you will be paid back. I would speak to a medical school's financial aid office (perhaps your state school) to get more information about your options.
 

Donald Juan

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I don't know, grad plus is pretty forgiving as far as who can get it. I know that students don't need a credit history or income to be eligible for it without a cosigner, but the cosigners might need to be better off. I'm not sure it's a definite no, but it might be good to have someone else as a backup in case it got denied.
 

282NC

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I know that there are no collateral requirements for Grad Plus, but I wonder if they would consider the assets of a cosigner?
 

QuantumMan

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I know that there are no collateral requirements for Grad Plus, but I wonder if they would consider the assets of a cosigner?

Me too! Have you been able to find anything? I haven't been able to. Most .gov sites just say, (paraphrased) "if you got denied because you have adverse credit history, (you may document extenuating circumstances OR) you may get an endorser who doesn't have adverse credit". The question is, what are the requirements to be an endorser?
 

282NC

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Nope, haven't been able to find anything. Although it seems to me that NO credit history wouldn't technically be considered "adverse" credit. However, I don't see them letting someone with no credit and no work-related income cosign your loans. That being said, I'm certainly no expert on the matter so I would suggest calling them to find out. Also ask if they would take the cosigner's assets into consideration for collateral.

Here's the important part: there are professionals at whatever school it is that you've been accepted to who's job it is to answer these types of questions. Your med school's financial aid office is where you will ultimately sort all of this out.

As a last resort, there are also private, higher-interest loans available that may be an option for you. They may also require a cosigner but they may be willing to accept your Mother's house as collateral for example.

DISCLAIMER: I have no experience with the gradplus process or med school loans in general.
 
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