Medical School with bad credit?

[TotheSky]

As the title states I have poor credit due to an overdue payment that I wasn't aware existed. I've never so much as owned a credit card, so until recently I didn't even know how credit worked.

So from my understanding Stafford loans (Federal) cover expenses up to 40,500 or so. These loans are not dependent on credit. Usually however, one needs GradPlus loans to cover the cost of living etc while in med school.

My question is this: I have a low credit score and a minor payment (not exceeding $800.00) from about 3 years ago. I was told that Grad Plus only excludes you if your debt exceeds $2000.00 and that I shouldn't worry about it. I wanted to get a second opinion on this. I don't have a cosigner, so if this is a problem I need to start addressing it now otherwise I'm in trouble. Can't go to Med School if I can't afford to live and eat while I'm there. Any help is appreciated. Thanks.

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[CyrilFiggis]

Unless you have interviewed or are accepted, this isn't a right now problem. Continue to work hard and do well. I would suggest paying off your debt and/or applying for a secured credit card that will help to build your credit in the meantime.

If you are accepted, talk to the FinAid department and get their opinion.

 

[TotheSky]

Unless you have interviewed or are accepted, this isn't a right now problem. Continue to work hard and do well. I would suggest paying off your debt and/or applying for a secured credit card that will help to build your credit in the meantime.

If you are accepted, talk to the FinAid department and get their opinion.

Appreciate the advise. In the best case scenario it wouldn't be a "right now problem" but if I'm required to pay off the debt then I'm going to have to start saving now in order to afford it. I barely scrap together a few pennies outside of rent, groceries and paying for classes. Unfortunately I have no choice to address the issue now or be caught with my pants down later. It would be nice to sweep it under the rug and ignore it, but I don't think that is wise seeing as it might bite me later.

 

[CyrilFiggis]

Appreciate the advise. In the best case scenario it wouldn't be a "right now problem" but if I'm required to pay off the debt then I'm going to have to start saving now in order to afford it. I barely scrap together a few pennies outside of rent, groceries and paying for classes. Unfortunately I have no choice to address the issue now or be caught with my pants down later. It would be nice to sweep it under the rug and ignore it, but I don't think that is wise seeing as it might bite me later.

You aren't required to pay off your debt for Grad PLUS. I have over $15K in debt and there are no issues. It's about having a good credit score. So I suggest making the minimum payments on the debt you owe and open a secure card. This will help to improve your credit score.

 

[TotheSky]

You aren't required to pay off your debt for Grad PLUS. I have over $15K in debt and there are no issues. It's about having a good credit score. So I suggest making the minimum payments on the debt you owe and open a secure card. This will help to improve your credit score.

Got it. I appreciate the advice.

 

[TotheSky]

As long as you have a payment plan agreed to with the creditor, even if it is $5 buck a month, DOE wont care

Ah thank you for this answer. All I really wanted to know.