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Short sale advice
Started by Scooter3
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It should have no effect on licensure. I wouldn't think it should affect medical school, although I seem to recall that some schools run credit checks. They have a vested interest in knowing how you are going to pay tuition. I don't know if having something like that on your record would be something that would jeopardize an acceptance or not. The bigger question is whether or not having that on your credit history would affect you being able to take out student loans, and I don't know the answer to that.
I'd suggest you check with the bank regarding how they'd report the short sale to the credit reporting agencies.
For med school loans, the unsubsidized/subsizidized loans are not credit contingent, but these two loan types are not enough to cover most med school tuitions + cost of living expenses, even at a lower cost state school. The additional loan amount is typically taken through grad+ loans, these loans are credit based and your credit is run approximately every 6 months to qualify for these, or you can have a co-signer (someone credit-worthy who jointly accepts responsibility to repay your loans if you don't). But at my school, there are often grants/loans that are given specific, such that you can often obtain these rather than grad+ loans if your household income is low enough; this might help if it's available at the school you attend.
Not sure if this would affect licensure, although I would highly doubt that it would.
For med school loans, the unsubsidized/subsizidized loans are not credit contingent, but these two loan types are not enough to cover most med school tuitions + cost of living expenses, even at a lower cost state school. The additional loan amount is typically taken through grad+ loans, these loans are credit based and your credit is run approximately every 6 months to qualify for these, or you can have a co-signer (someone credit-worthy who jointly accepts responsibility to repay your loans if you don't). But at my school, there are often grants/loans that are given specific, such that you can often obtain these rather than grad+ loans if your household income is low enough; this might help if it's available at the school you attend.
Not sure if this would affect licensure, although I would highly doubt that it would.
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"A qualified Graduate PLUS Loan borrower does not have an adverse credit history (defined in regulations as being 90 days or more delinquent on any debt, or having a credit report that shows default, discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of a Title IV debt during the five years preceding the date of the credit report). Note that Graduate and Professional Student PLUS loans do not use any kind of a debt-to-income ratio or FICO® score, unlike private education loans."
You can always get a cosigner if rejected.
You can always get a cosigner if rejected.
What is a title four debt is federal student loans. None of those terms are applicable to a short sale...
I am also in this situation and am trying to find out whether this impacts the possibility of a GradPLUS loan. I contacted the federal loan origination phone number and they said (and they didn't seem too certain about this) is that if the credit report has "foreclosure" or "deed in lieu of foreclosure" on the report that it is a denial. A "settled in full" statement keeps you still eligible.
Has anyone more accurate information on this? It is notoriously difficult to find...
Title IV debt are federal student loans
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