When I was 18 I messed up and defaulted on my student loans. This was obviously a mistake and i'm paying for it. I just got put on a program to rehab the loan within 9 months and it comes out of default status. I was wondering since Medical School is still some years away, would it affect my financial aid by the time I got there? It'll be roughly 3 years before I can start applying to med schools, so not sure if this loan will affect anything.
Default on student loans
- Thread starter Rysukosan
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Generally speaking, medical schools' acceptance offers are conditional upon several factors, among these are a clean financial record (necessary for receiving financial aid/loans), meeting technical standards (i.e., having no disability, etc. that would make your ability to perform in medical school an undue burden on the system), and keeping grades (as well as a few others). If you fail to meet a condition, the offer will be rescinded and made to another candidate. Defaulting on a student loan is likely to be a pretty big black mark on your credit record for at least a few more years. (I would suspect a minimum of 7 years for that stain to either disappear or at least be overshadowed by your more recent good credit.) You should consult your school's FinAid dept.
Yea, I figured acceptance was conditional. The loan holder basically told me that this new program they put me under wipes the default status off my record as soon as the 9 months are up. It's a program for rehabbing loans, does anyone know if this is true or not? Or will I have to essentially wait for this to clear from my record?
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I'd suggest consulting your financial did officer at school. Everyone here will be guessing as we know nothing about the program (not even its name) and most here lack the legal our financial background to even wager a reasonable guess, although knowing pre allo, you're bound to get some bs responses implying people know what they are talking about!
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Not so sure about that. The major federal loan programs aren't credit-dependent, and I imagine that most schools' aid programs are also not credit-dependent. You're right, though, if you have to look at either GradPLUS loans (which simply won't be feasible without a cosigner) or, worse, private loans.
I don't think "financial responsibility" is one of the expectations of incoming medical students.
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How did you default when you were 18..
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I know that several of the schools I was accepted and waitlisted at made a point that they expect a "clean" credit report and that it had to be sent to them by such and such a date to reserve my spot in the class. (The waitlisted schools made it part of the acceptance conditions whereas the ones to which I was accepted simply said to have it to them by orientation.) The way I understood it was that they would basically take your credit report as long as it was not so bad as to make it unfeasible for you to obtain student loans. I don't know whether the OP's default would make that impossible but I suspect schools would at least be asking questions about it. The truth is that few of us could get away w/o taking out GradPLUS loans for med school. It's unfortunate but what do you you do?
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I don't know about OP, but my brother-in-law took out a student loan, dropped out of school the next week and spent all the loan money on drugs.
He is now default on a student loan. He is also now finishing up some jail time for getting caught with the drugs.
dsoz
He is now default on a student loan. He is also now finishing up some jail time for getting caught with the drugs.
dsoz
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Yarly
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I don't know about OP, but my brother-in-law took out a student loan, dropped out of school the next week and spent all the loan money on drugs.
He is now default on a student loan. He is also now finishing up some jail time for getting caught with the drugs.
dsoz
If that's OP's problem, I think we've got a bigger issue here than defaulting.
You drop into warning status. Warning status means just that, you're on a "probation" so to speak. Once in warning you can not regain "Good" or Normal status. If you mess up again you lose Aid eligibility and will never be able to receive any type of federal financial aid.
Unless we're talking about something totally different, that's how it's going to work. My school has a mandatory class just on financial aid. It was the worst term of my life.
Unless we're talking about something totally different, that's how it's going to work. My school has a mandatory class just on financial aid. It was the worst term of my life.
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This was my understanding.
But how did you default on loans your freshman year? That doesn't compute.
Sent from my iPod using SDN Mobile app. Please excuse the typos.
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Wow - that's ridiculous. Sounds like schools I would avoid if at all possible. That wasn't even mentioned at any schools that I was accepted to or interviewed at.
I got the loans around 18 they didn't fall into default until a year or 2 afterwards. To put it simply I ****ed off, was very irresponsible and made a very stupid mistake. The loan was for a trade school (WestWood College) I went for a little under a year, dropped out and my personal/family life fell apart and I made a stupid mistake and simply ignored it. I know it was stupid but I am doing my best to dig myself out of the hole I dug. I am going to be calling my loan holder and talk to him about the rehab program. I was just curious to know if anyone has been in a similar situation or have any insight on this issue.
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It was just a couple of them. Maybe I worded it too harshly. I thought it was pretty reasonable, TBH. Your credit Hx needs to be clean enough that you're going to be able to get loans. Considering you will need loans to pay for med school, it seems reasonable to me to make your invitation conditional upon a somewhat clean credit hx. (We're not talking never a late bill or anything. We're talking defaulting on loans or currently being in default on a loan -- see this site for details on what prevents you from certain loan offers.) Certain school(s) stated that for waitlistees, they wanted a credit report soon after the offer because if you weren't going to be able to afford to go there, they couldn't really wait for you. It was more of a warning than anything else. I would guess that once offers are extended, they work with you a bit more.
