Loans & Credit Question

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Hi, I have quick questions regarding types of loans dental students take out eventually:

1. So, according to my research, students take out Federal Direct Unsubsidized Loan for the amount of $4XXX.XX and the rest by Graduate PLUS loans. Is this correct?

2. I have no credit card and have used only debit card and cash, meaning I have 0 credit. Am I still eligible for Plus loans?

3. I already have some loans from Undergraduate and Graduate school. Is this going to affect my eligibility?

Please help 🙁 thank you!

 

[amiraliagh]

Hi

1- yes, you will be able to obtain graduate plus loans to finance the remainder of your cost of attendance (COA) after taking out the maximum amount of federal direct unsubsidized loans.
2-
Federal law requires a credit check before approving a Federal Direct PLUS loan. Having no credit history is not considered adverse credit. However, an individual will generally be unable to obtain a Federal Direct PLUS loan if he or she:

• Is 90 days or more delinquent on repayment of any debt,
• Has defaulted on any debt, or
• Has been subject to: bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a federal student aid debt during the five years preceding the date of the credit report.

your credit score is not checked as a measure of eligiblity for graduate plus loans, only adverse credit history is checked.

you should definitely start having a credit card as soon as possible and building your credit. if you want to rent, buy a practice, buy a car etc, no lender is going to loan you anything if you have not established a good credit history which takes years, as one of the criteria itself is how many years you had a credit line

3- No it wont affect your eligibility.

 

[sjv]

Amiraliagh nailed it
1. Yes
2. Yes
3. No

 

[Faux]

Aren't private loans looking a bit better than gov loans? Like Discover Student loan have some nice terms.