Quick question about grad plus loans

[Spinach Dip]

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My question is this: Do I need a co-signer if I have a negative mark on my credit history that is more than 5 years old?

I ask because I have a negative mark that is ~5.5 years old. Last year, it made it very difficult to fund my classes. I want to know if this year is going to be just as hard.



Thanks.

 

[DrMidlife]

https://studentloans.gov/myDirectLoan/faqs.action

What is considered "Adverse Credit"?

Adverse Credit Conditions include but are not limited to:

Bankruptcy (Chapters 7,11, or 12 within the past 5 years).
Note: Department Policy does not consider Chapter 13 bankruptcy as adverse credit.
Voluntary surrender within the last 5 years.
Repossession within the last 5 years.
Foreclosure proceedings started.
Foreclosure within the last 5 years.
Deed in lieu of foreclosure.
Accounts currently 90 days or more delinquent.
Unpaid collection accounts.
Charge offs/write offs.
Wage garnishment within the last 5 years.
Defaulted loan that has been claim paid.
Lease or contract terminated by default.
County/State/Federal tax lien, within the past 5 years.

 

[Spinach Dip]

So... an account 90+ days delinquent, but more than five years old, would still be considered adverse credit?

 

[michiganpsych08]

Does anyone have an answer to this question? I am in the exact same scenario. I have an adverse credit account on my credit report, but it is older than 5 years. Has someone had this and been approved for grad plus?

 

[a runner]

The link DrMidlife quoted says that accounts currently delinquent 90 or more days would be an adverse event. I imagine if the account is now current, it wouldn't be considered an adverse event anymore.

If the adverse event is an unpaid collections item, you have to pay it off, there is no time limit.

Most of the adverse events don't count if it was more than 5 years ago, but not all. It depends on the event.

 

[a runner]

It is student loan application time. Best thing to do is go to studentloans.gov and apply for the GradPLUS loan online. You will get a credit decision quickly and then you will have your answer. Even if it is denied, you can call them up and see if there is anything you can do to have it approved.

 

[Postictal Raiden]

I had an adverse credit account from 4 years but it was paid off and closed. I had no issue qualifying for grad plus loans. I think they primarily care if you have any outstanding collection at the time of your application. If you have none then there's nothing you should he worried about.

 

[bankaix808]

I had an adverse credit account from 4 years but it was paid off and closed. I had no issue qualifying for grad plus loans. I think they primarily care if you have any outstanding collection at the time of your application. If you have none then there's nothing you should he worried about.

I have a bankruptcy discharged five years ago, and a tax lien released four years ago -- approved. Just like the couple of posts before me, as long as you don't have any current adverse credit (i.e. 90 days and the other stuff Dr. MidLife had posted), you should be okay. Good luck 😉

 

[rishi22m]

I have a bankruptcy discharged five years ago, and a tax lien released four years ago -- approved. Just like the couple of posts before me, as long as you don't have any current adverse credit (i.e. 90 days and the other stuff Dr. MidLife had posted), you should be okay. Good luck 😉

I just want to make sure I am understanding this correctly. I recently found out that I have a collection account on my credit report. I plan on paying it in full but it will remain in my credit report for many years. Will this affect my ability to obtain a graduate PLUS loan?

 

[usc_92]

I just want to make sure I am understanding this correctly. I recently found out that I have a collection account on my credit report. I plan on paying it in full but it will remain in my credit report for many years. Will this affect my ability to obtain a graduate PLUS loan?

Bump. Anyone have an answer to this question?

 

[SigmaFS]

Per the Department of Education:
The student's credit report must be free of the following adverse items:

Currently 90 days or more delinquent on repayment of any debt.

Debt placed in collection or charged off (written off) within the past two years.

Evidence of a bankruptcy, default, discharge, foreclosure, tax lien, repossession, wage garnishment, or write-off of a debt during the past five years.

Collection accounts or charge-offs with a balance greater than $2,085.