Debt owed to collection Agency... How can I get GradPlus Loan?

[canIgoDschool]

Hi everyone, I made an account because I had a question regarding getting the GradPlus Loan.

I went through a hand surgery, couldn't pay the bill to the hospital, and have owed $19k to a collection agency.

I requested my credit report, and I see that me owing money to the collection agency shows up on my credit history.

With that said, can I still receive GradPlus Loan? I have searched the forum and saw that I would need to have my parent co-sign for me. Is that the only condition? Or, when my parent cosign for me, will we have to put our house as a security/mortgage? Like, will they take away our house if I can't pay back the loan?
Paying back the loan wouldn't be much of a problem, but my family is afraid to have our house as a security/mortgage to receive the GradPlus Loan as we are trying to sell the house soon.

Thank you in advance...

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[whaleofatale]

Hi everyone, I made an account because I had a question regarding getting the GradPlus Loan.

I went through a hand surgery, couldn't pay the bill to the hospital, and have owed $19k to a collection agency.

I requested my credit report, and I see that me owing money to the collection agency shows up on my credit history.

With that said, can I still receive GradPlus Loan? I have searched the forum and saw that I would need to have my parent co-sign for me. Is that the only condition? Or, when my parent cosign for me, will we have to put our house as a security/mortgage? Like, will they take away our house if I can't pay back the loan?
Paying back the loan wouldn't be much of a problem, but my family is afraid to have our house as a security/mortgage to receive the GradPlus Loan as we are trying to sell the house soon.

Thank you in advance...

It sounds like you do meet the definition of having an adverse credit history and will likely be credit declined for that loan program. You need to be prepared to resolve the delinquent debt, add an endorser (co-signer) to the loan, use your own resources to pay for school.

Grad PLUS endorsers do not have to put up collateral to receive a loan--you don't on any type of student loans--but the loan could negatively affect your parents' ability to apply for new credit (such as a mortgage) as it will impact their debt-to-income ratio as if it was their loan. The Department of Education would not go after your parents for their assets if you and they fail to pay back the loan, but your/their bank accounts could be garnished and tax refunds seized.

It sounds like you are not in the best of financial circumstances right now. I encourage you to think long and hard about whether attending dental school on student loans is the right decision for you at this time.

 

[Faux]

First, send a letter (samples online) asking the collection agency go verify the debt. They need to do this and sometimes debts are deleted just because of how disorganized some of these companies are. My mom's judgement got thrown off because of that.

If they do verify it, you either need to work, borrow money, take a small loan from bank/family and get around 10-15k. When you get this amount, send a pay for delete letter(samples online). Often these companies agree to delete negative remarks if you pay. And often, they accept less than the original amount.

Certified mail for both. This can all be handled in a month or so with a bit of luck.


myfico.com for future readings.

 

[BJDollaz]

Since its medical related, you could probably negotiate to pay 30% of the bill and get away with it.