Grad plus loan special situation

[prepod2011]

Hey guys, I am in a unique situation. I accepted my award letter for both my unsubsidized loans and my grad plus loan on May 19th ( a Saturday). That same night I got an email from my credit monitoring service that an old collection that I disputed a year ago popped up under Experian with a new collection agency (they basically took it off my CR and sold the collection to someone else).

My school's website says that the it notifies u.s dep of education for the grad plus loan credit check about 5 days after your award is accepted, I payed off the collection on Tuesday May 22nd and scheduled it for deletion, whenever that's gonna happen-but i did pay it off. Does anybody know if I am going to get screwed over and denied for the grad plus loan because of that one collection that I immediately paid off that showed up on the exact day I accepted my award letter???

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[prepod2011]

Also I have previous student loans that were in default and consolidated last year...I am confused with the qualifications about grad plus credit check saying that there can be "no evidence of default, bankruptcy ...." Well on my CR the account status reads the defaulted loans as "Paid Collection" or "Closed" and there is a new installment loan with the full consolidated amount. I am I still okay since I have taken care of my debt responsibly and nothing is in "active" default status for anything???

I am wondering, consolidating your loans makes you eligible for fin aid again, but since unsub loans never cover everything, does that mean anybody with a defaulted student loan who consolidated and is in good status again cant get grad plus loans for another 5 years?? I hope not, please somebody shed some light on this.

 

[prepod2011]

Anybody???

 

[TMP-SMX]

You aren't eligible for grad plus due to your defaulted loan. Any default within 5 years will preclude eligibility for grad plus whether you paid it off or not.

You need to stay within your stafford limits and find another way to fund the rest. You are surprised a lender won't lend to you despite your past offenses? Even the feds aren't going to take that risk.