GradPlus question

[Anonymous]

I have a question regarding these loans.  I plan on attending law school next fall and will need this to cover the rest of my tuition.

I have two baddies on each report (all the same) that are not due to fall off until late to mid '09.  My question is....does anyone know how these will affect the chances of getting that loan?

I understand that they don't want recent baddies or baddies that are more than 90 days over due.

One is for TXU which is a CO.  It never updates

The other is a collection that occasionally updates as 90 days past due.  It just depends.

Do I need to make arrangements to pay these off before I need to apply?

[Anonymous]

I am assuming that this is a private loan, since your credit report/credit score does not impact your ability to take out federal loans.

For fall 09, you'll start filling out applications (at the latest) in July and August 2009.  It sounds like the charge off and the collection will both still be on the reports at the time that you are applying.

Private loans are getting more and more difficult to get.  If you're taking out a private loan to cover tuition, then you're probably also going to be using (at least some)private loan funds for your living expenses.  Private loans are credit based, and usually require a cosigner for even small (<10k) amounts if you don't own real estate.

You will want to be in the best shape possible when you apply for this loan.  And remember, you want to stay in good shape because you have to reapply every year.  Save up and offer PFD's on the negative items.  You may be able to get them off the reports entirely.  Even if you can't PFD, my advice is to pay these off asap.  They probably will negatively impact your ability to get a private loan, but you may not be able to get one on your own anyway--I had good credit and still needed a cosigner.

Be sure to check Access Group, too.

[Anonymous]

I think this is a federal loan, but they do check your credit. 

If I need to apply July\August I may be ok depending on which CB they pull

Here is the anticipated fall-off schedule:

EX one is due to fall off in May and the other in June

EQ is the issue.  These will not fall off until September and November.  I also have a medical collection, but I've paid the OC and I have proof.

TU these will fall off in May and July

[Anonymous]

Federal loans are not credit based loans.  Once the school tells you how much you're eligible for, you can take out the full amount without a credit check.

[Anonymous]

No, read the title of the post: GradPlus. These are federal loans for graduate school that have very basic credit checks.  You can do a general search.  I do know that they strongly frown upon bankruptcies, defaults, and foreclosures.  I don't entirely understand what your baddies were, but the GRadPlus look at super baddies.

[Anonymous]

my gradplus always checks TU.

[Anonymous]

I guess the take away from this is that some companies who provide federal loans could check your credit.  This has not been my experience with seven years of needing federal loans.

My federal loans were with Sallie Mae (undergrad) and Access Group (grad) and neither checked my credit reports.  If you're worried about your credit reports impacting your ability to take out federal loans, look for these kinds of companies.

[Anonymous]

Well, I'm "off the hook" on EQ.  Apparently, they fell off a year early....

I have a charge-off for TXU and a collection from Asset Acceptance.

No defaults or anything unless they consider a charge-off default.  These baddies will fall off the TU and EX next year around May and July.  Hopefully they will be gone before I apply.

I wonder if they have some counseling service that I can call and get info....

Thanks for the replies.

[Anonymous]

Just for everyone's FYI, of course most people's experience with Federal Loans are that they are not credit-based.  It's only the GradPlus loans, for students, and only grad students.  But, it's not as though you might randomly be credit-checked for Stafford loans.

[Anonymous]

It has nothing to do with the company, just the type of loan.