Bankruptcy? NO MED-SCHOOL FOR YOU!!!

[determined1]

Hello everyone. I was just wondering does bankruptcy on a credit repeort disqualify someone for getting in med-school?
Is there any schools out there that base competitiveness on this criteria? Or, does anybody know if med-schools are going to use credit scores as a criteria in the future?
Thank you

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[2008orbust]

I have not heard of any particular schools policy on that matter. HOWEVER, your credit report is taken into account when getting financial aid and loans. You may end up with sky high interest rates on loans or, worst case scenario, no one offering loans at all. Do you have enough money to pay for school? I hope this helps a little. Good luck to you!

 

[njbmd]

Moving to Financial Aid Forum as this topic is a financial topic for better discussion.

 

[rgerwin]

Stafford loans are not credit-based, but GradPlus Loans are. They don't take into consideration debt to income ratio, but they do frown upon bankruptcy. Plan on a co-signer for those. That's not even an interest rate issue, b/c they are fixed. They will just reject you.

 

[medschl hpeful]

I was a mortgage lender before becoming a medical sales consultant. There is life after bankruptcy! Re-establish your credit. Best choices are installment loans for example, car loans. They are easy to get especially after bankruptcy. Credit cards will build credit, and they are also easy to get.

Aprox. one year after discharge, if you have been pro-active in re-establishing your credit, you will have a better chance at credit approval. I hope that helps.

 

[AMDFAO]

I have heard of schools requiring a credit report as a condition to matriculate. Schools began doing this as their costs began to exceed the Stafford maximums and students poor credit histories precluded them from being approved for alternative loans (not federally backed and based on credit). Rather than allow a student to enroll who had no way to pay the tuition and basically stiff the school as well as setting up a student by having them start a program they would most likely never complete and owe more money, schools began asking permission to pull a credit report. In some instances it was to enable the FA person to advise the student as to how to clean it all up so they would be able to borrow or to discourage or prohibit a student from enrolling.
Last year when students became eligible to borrow GradPLUS loans (a federally backed loan) the climate I'm sure changed in regards to credit report pulling. A GradPLUS loan will be denied if there was a bankruptcy within the last 5 years (and a few other reasons) and I'm making a leap that yours was less than 5 years ago. In order to be approved you most likely will need to add an endorser. Your endorser can't have had a bankruptcy, tax lien or payments in arrears of 90 days reported so it's pretty likely you could find someone who would meet the criteria. You may have to add an endorser every year if the bankruptcy is within the 5 years and the time to have the discussion is now with that person and not when the bill is due and you can't register at school. Your credit score has nothing to do with your approval for a GradPLUS.
An endorser will be legally responsible for the money if you don't pay it which in my book is only half the story. An endorser will always question your money decisions throughout the repayment. For example: you go on a vacation instead of paying that money to a loan they endorsed etc... If I was your endorser I'd be saying to myself "she can go o vacation and not pay extra on the loan I signed?" That I think is the real issue with having an endorser-- the having someone looking over your shoulder and the obligation to that party. It also may prohibit them from getting financing later on so try and choose someone who is established: already has a mortgage and is not planning on refinancing in the next few years etc because your debt becomes their debt.
Your best defense is a good offense in case it comes up as to how you will pay for the 4 years of school and cover your other expenses. I'm also 90% sure that if you consolidated a GradPLUS loan your endorser would be removed since it would be a new loan. If I can get a 100%, I'll let you know and if that's the case, you would be able to inform your endorser that at the end of school you would be consolidating immediately to get them off.

 

[shaolinRX]

All it really takes is an inquiry. For GradPLUS loans many lenders won't work with anyone with a bankruptcy that has been recent (usually under 2 or 3 years from date of bankruptcy).

Most Big-Name Banks and credit unions will simply reject you on the basis of a recent bankruptcy....from my experience of trying to get a credit card (secured or unsecured) to re-build your credit.

Best advice: shop around and ask!

If you plan on attending pharmacy school soon, you might not have the option of building your credit, but planning for the future regardless may open doors for you (that's never a bad thing).

 

[DReject]

^^
ShaolinRX-

What is MiMed? Is there a website for it?

ALL Grad Plus lenders check credit.

 

[Ilovepharmd]

I have been building up my credit for a few years now, after being irresponsible in my early 20's. However, I took a 3-month phlebotemy course about 5 years ago for which I took out a loan of $1500. I very irresponsibily defaulted and they ended up charging it off. I can't repay it after it got charged off right? Although I haven't had a late payment on anything in at least 3 years, I've been denied a Grad Plus and a private loan already. I don't know what I'm going to do! Any advice??

 

[DReject]

Hi,
Alright, can you get a cosigner/endorser for grad plus?

If you don't already have one, get a copy of your credit report. You may be able to see where your student loan was charged off to. You can call up the original student loan lender and ask them where they turned your account over to.

With some phone calls, you can get the answer.

Also, call up Sallie Mae and other lenders, and ask them what it'll take for you to get approved. They may ask for a letter saying that you made satisfactory payment arrangements with the original lender. Talk to Sallie Mae and explain your situation. They can offer advice.

Good luck!

 

[okbye]

Your NSLDS report will show you the last owner of your loan. When they default they go to the guarantor who then either self-collects or sells to a collection agency. Sallie Mae will probably not know who held your loan last. I doubt there's anything you can do once it is charged off because that means Uncle Sam paid for it, but it doesn't hurt to try. It would be simpler and quicker to find a cosigner.

I have never heard of a lender not doing a credit check for a Grad PLUS loan. They would have to to get the loan guaranteed, so maybe there was some miscommunication there or the customer service rep was misinformed (which is much more common than you would like to think).

 

[shaolinRX]

^^
ShaolinRX-

What is MiMed? Is there a website for it?

I thought all Grad Plus lenders check credit.

unfortunately, okbye is right. I called back today to verify a few things (was about to apply with them), however the customer service rep that I had spoken with previously was wrong. sheesh, don't know how you could go so completely adrift on that. It sounded too good to be true, so it was. Sorry to get your hopes up (and mine).

 

[HunterGatherer]

I have heard of Apsire givng student loans to those post bankruptcy. i'm not sure if co-signers are needed though.

 

[QuantumMechanic]

the title of this thread is a bit sensational...

 

[HunterGatherer]

the title of this thread is a bit sensational...

If you are going to a private school the title is quite true unless you have family to help you out.