Mother signing for son as co-signer??

[medicalmom]

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Hey y'all, I am proud southern mother of a son who is about to go to medical school but I had one question about Grad Plus loans. My son has a medical collection and was rejected a grad plus loan I was thinking about co-signing the loan.

Just one thing though, when he was in undergrad I took out a parent plus loan which defaulted due to a mix up with different lenders and just last year in September I rehabilitated my loan instead of consolidating since I was told its the better option credit wise. My question is, will it still be regarded as "adverse credit history" and prevent me from co-signing on his grad plus loan even though I rehabilitated. On my Credit report it does not say "collection paid" but says account "closed or "transferred."

Thank you for any advice.

 

[TMP-SMX]

Default is default. Won't be able to cosign. Any default within 5 years.

 

[Tech2MD]

I think your son can appeal the denial. I thought medical bills was not hold aganist someone.

But if so, I believe he either have to pay the debt in full or make an acceptable payment arrangement with the collection agency. After one of these are done they will most likely approve the loan. You should called and ask about your options.

Sent from my PG06100 using SDN Mobile

 

[TMP-SMX]

I might be misunderstanding your question. I thought it was a default on a loan. After taking care of the debt I don't see why you wouldn't be eligible.

 

[medicalmom]

Yes, the parent plus loan did default, but it is not in active default status anymore because I rehabilitated it. It showed as account "transferred" or "closed" on my credit report.

 

[medicalmom]

Yes, the parent plus loan I took out for my son in undergrad did default. However it is not in active default status anymore because I went through a rehabilitation program that deletes the default status. My credit report now says account "transferred" or "closed" which I one could assume does not indicate proof of default. I think the Dept of Education considers adverse credit if in the last 5 years your student loan defaulted and went to collections or is marked as a charge-off, and never addressed it or failed to take care of it. This is not the situation I am in.