Grad Plus loans and Bad Credit

[ElectraOnAzalea]

I need help! I just looked at my credit reports and they have some unpaid medical bills that have been sent to a third party for collection. I did not even know these existed. I'm still on my dad's medical insurance and the bills had been sent to my home and for some reason or another (who kows) never got to me and never got paid off. The total aggregate of these bills is less than 500 dollars (some of then being only 9 dollars!!). I'm not sure what to do. This, i'm sure, is going to affect me when i try to apply for a grad plus loan because it is adverse credit.

If i get denied, what do i do? Can you talk to a lender specifically about your situation? Do they care? I just need pointed in the right direction.

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[Doctor Bagel]

You can try to talk to the lender, but you might need a cosigner because I believe a credit collection is something that makes it hard to get GradPlus loans. I guess you can guilt your dad into co-signing since he's been ignoring the medical bills.

 

[TMP-SMX]

Ouch, well first of all you need to deal with this collection agency. Good luck.

 

[Doctor Bagel]

Here are the qualification requirements for the GradPlus loan --

https://www.accessgroup.org/AppSecure/Loan_Terms/LoanDetails.aspx?schoolid=005889#00#M1&loant=PLG

 

[ElectraOnAzalea]

Yeah, we're contacting the collection agency and paying off all of the debts asap. My dad does feel guilty already and will co-sign for me, but I actually don't know how his credit is. He's actually trying to get the collections transferred to his credit report since it was not my fault; but I'm not sure if this will work. I'm just wondering what my options are at this point.

 

[ElectraOnAzalea]

Update for anyone else who may be in this position. I talked to a few lenders and if i pay off these debts and send in an updated credit report i will be approved for the gradplus loan without a cosigner. Hooray! Also, if you have a credit-worthy cosigner and can't pay off your debts right away, that will work too.

 

[Doctor Bagel]

Update for anyone else who may be in this position. I talked to a few lenders and if i pay off these debts and send in an updated credit report i will be approved for the gradplus loan without a cosigner. Hooray! Also, if you have a credit-worthy cosigner and can't pay off your debts right away, that will work too.

Good deal! Thanks for giving us the update.

 

[BayDamOU]

Will my husband's credit affect my ability to get GradPlus loans? Or do they only check mine? I've been accepted to an out of state school and I'm worried stafford loans won't be enough.

 

[Doctor Bagel]

Will my husband's credit affect my ability to get GradPlus loans? Or do they only check mine? I've been accepted to an out of state school and I'm worried stafford loans won't be enough.

They just look at your credit. Your husband's credit is an entirely separate deal.

 

[BayDamOU]

They just look at your credit. Your husband's credit is an entirely separate deal.

Good to know, thanks.

 

[futuredo32]

I will be applying for Grad Plus loans for the fall of 2008 and winter of 2009. Will I be filling out one application asking them to loan me the money for both of these semesters or do I fill out one application for the fall and another application for the winter? I just read about some of the loan companies "temporarily" suspending loans and I'd like to borrow it all now, just in case the rest of them stop loaning money.

 

[qechan2003]

I was 90 days past due on a Macy's credit card 2 years ago. I had no idea until I pulled up my credit report. Fortunately, it was only 90 days deliquent and I also paid off the balance and closed the account beyond that point. I wanted to asked if something negative 2 years ago would affect my eligibility for the Federal Grad Plus loan or would they only look at current information?
Thanks in advance.

 

[TMP-SMX]

I will be applying for Grad Plus loans for the fall of 2008 and winter of 2009. Will I be filling out one application asking them to loan me the money for both of these semesters or do I fill out one application for the fall and another application for the winter? I just read about some of the loan companies "temporarily" suspending loans and I'd like to borrow it all now, just in case the rest of them stop loaning money.

There's nothing to worry about. You have one application for the whole year (both semesters). They just give you half in the fall and half in the winter. Typically when you start (July-September) and when you come back after Christmas break (January).

I was 90 days past due on a Macy's credit card 2 years ago. I had no idea until I pulled up my credit report. Fortunately, it was only 90 days deliquent and I also paid off the balance and closed the account beyond that point. I wanted to asked if something negative 2 years ago would affect my eligibility for the Federal Grad Plus loan or would they only look at current information?
Thanks in advance.

I'm not an expert on grad plus, but it depends on your score and if you solved the issue you had previously. Grad plus is usually more lenient, so you shouldn't have any problems. Perhaps you should check out your report every year and your score to put you at ease. In general you should avoid those store credit cards because they can be a pain to deal with and if you have trouble paying them off it becomes even worse to try to reason with them. Also, closing accounts can actually reduce your credit score. If it has no annual fee it is often better to sit it in the closet. Just keep it around to use maybe once a year.