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airbuspilot04
Posts: 1
Registered: ‎04-18-2013
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GradPLUS approval with unpaid judgment?

Judgments are not listed under the adverse credit items that cause a GradPLUS application to be rejected. I also contacted the GradPLUS credit center and they said that judgments wouldn't cause a rejection, but I find it hard to believe.

 

Does anyone have a recent experience of applying for a GradPLUS loan with an unpaid judgment on the credit record and getting approved automatically? I have no derogatory credit items on the report at all, except for the judgment.

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InvincibleSummer3
Posts: 640
Registered: ‎11-20-2012
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Re: GradPLUS approval with unpaid judgment?

[ Edited ]
"2. What is considered to be an adverse credit history?
You are considered to have an adverse credit history if you are 90 or more days delinquent on any debt or if, within 5 years of the date of the credit report, you have been the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write- off of a Federal Student Aid debt (for example, a Direct Loan or Federal Stafford Loan)."
 
There's no listing of a judgment, so that part looks to be accurate, but is there a chance that this judgment could turn into a garnishment? I do know people who have been successful at getting GradPLUS loans with collections and even the occasional judgment, however. The rules for Federal loans are not like a regular lender. My understanding is that they're looking at people who owe the feds money or have declared bankruptcy. They're not as worried if it's merely minor consumer debt.
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SCF
Posts: 1,080
Registered: ‎06-09-2008
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Re: GradPLUS approval with unpaid judgment?

Because it's not an automatic disqualifier, I would expect it to be considered in the wider picture of your overall file and score.

 

The best way to find out is to apply.


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