Other OT-Related Information Grad Loan Qualification

[lilbunnies]

I have very good credit (in the 760s) and have only student loans and one credit card. I requested my report and noticed that I have one medical bill that I haven't paid. I forgot about it until now. Will this hurt my qualification for certain loans? It's kind of a high bill and I am short on cash right now due to other financial matters I am attending to.

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[Ot1029126]

I would suggest getting in contact with the collection agency and setting up some sort of payment plan.

 

[lilbunnies]

I would suggest getting in contact with the collection agency and setting up some sort of payment plan.

If I show that I'm working on paying it this will fix that problem? I noticed that you can't be delinquent on any debt to qualify for grad plus so I just wanted to check. Do I have to update my report myself?

 

[Ot1029126]

Well, collection accounts can remain on your report for up to seven years even if you pay it off. At the end of the day credit report is just showing how reliable you are in laying your debts. Paying it is better than not paying it. See if the collection agency already reported it, if not begin the repayment.

 

[OldHopeful]

If I show that I'm working on paying it this will fix that problem? I noticed that you can't be delinquent on any debt to qualify for grad plus so I just wanted to check. Do I have to update my report myself?

I had an outstanding bill myself and literally had no clue this bill existed/ was unpaid so when I called the company I explained I never got the bill and they too had in their records the mail was returned to the sender (no clue why) so the collections company was able to wipe it from my records because the company that submitted it basically didn't do their due diligence to notify me several a few times before they sent it to collections. To this day I have no idea why the bill never made it to my mailbox or why the company that I am still an active customer of didn't do more to notify me of an outstanding bill. Anywho, point of my story is to say try and give the company a call!

 

[lilbunnies]

Unfortunately that is not the case for me, this incident happened in my early 20s when I was just starting out on my own, and I was definitely notified several times about it. It is definitely delinquent. It is showing up as reported as of April 1st of this year, just my luck. I'm emailed student loan support to see what they're going to say first before I proceed. Hopefully I can just arrange the payment plan. I'll just have to see what happens. Thank you guys for your advice.

 

[OldHopeful]

Unfortunately that is not the case for me, this incident happened in my early 20s when I was just starting out on my own, and I was definitely notified several times about it. It is definitely delinquent. It is showing up as reported as of April 1st of this year, just my luck. I'm emailed student loan support to see what they're going to say first before I proceed. Hopefully I can just arrange the payment plan. I'll just have to see what happens. Thank you guys for your advice.

Oh shucks. Well, you should be able to set up a payment plan. Try not to let it bog you down until you get the facts. This whole process is so stressful just remember to keeeep breathing

 

[lilbunnies]

Update: They said you can have a delinquency as long as it is under $2800 dollars and it should not be flagged. If it is, you can file an appeal to dispute the rejection. Payment on a debt such as that must be made for 6 months before the time of application, so it wouldn't help me to set up a payment plan for that because it won't effect my particular loan application. This is in regards to the GradPLUS loan for anyone that had the same questions.

 

[SMHopeOT]

Update: They said you can have a delinquency as long as it is under $2800 dollars and it should not be flagged. If it is, you can file an appeal to dispute the rejection. Payment on a debt such as that must be made for 6 months before the time of application, so it wouldn't help me to set up a payment plan for that because it won't effect my particular loan application. This is in regards to the GradPLUS loan for anyone that had the same questions.

You may be able to qualify with a co-signer.

 

[lilbunnies]

You may be able to qualify with a co-signer.

Yes, my dad filed bankruptcy when I was a kid so he's out and I don't think my mom would go for this since we aren't close and she has cosigned on my sisters car, so I'm not sure who else I could use, that's why I was trying to figure out this deliquency issue.

 

[SMHopeOT]

Yes, my dad filed bankruptcy when I was a kid so he's out and I don't think my mom would go for this since we aren't close and she has cosigned on my sisters car, so I'm not sure who else I could use, that's why I was trying to figure out this deliquency issue.

If your dad filed when you were a kid I think after 7 years it is removed from his credit. You can actually contact someone from student loans and they will let you know if you qualify. You can also just apply and see what happens. Since applying is only a soft inquiry in your credit it doesn't hurt your credit when you apply.

 

[SMHopeOT]

If your dad filed when you were a kid I think after 7 years it is removed from his credit. You can actually contact someone from student loans and they will let you know if you qualify. You can also just apply and see what happens. Since applying is only a soft inquiry in your credit it doesn't hurt your credit when you apply.

You can also try to go back to the hospital that sent you to collections and try to have them remove the collections and see if you can set up a repayment plan with them. I know it's a long shot but it is possible. My hospital near me will remove you from collections if you make a payment arrangement with them.

 

[lilbunnies]

Okay. Thank you guys so much for your advice! I am getting things straightened out with my financial aid office to figure out if I will even need to go this route. I am so excited to get started in the fall but getting the funding together is a little unnerving. It will all work out though, I'm just grateful I made it this far

 

[SMHopeOT]

Okay. Thank you guys so much for your advice! I am getting things straightened out with my financial aid office to figure out if I will even need to go this route. I am so excited to get started in the fall but getting the funding together is a little unnerving. It will all work out though, I'm just grateful I made it this far

Good luck!