Law School Discussion

Grad PLUS adverse credit histoy?

Grad PLUS adverse credit histoy?
« on: July 09, 2008, 11:38:11 AM »
ok so the exact wording about grad plus eligibility from the fed. student aid site is:

"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 writeoff
of a Federal Student Aid debt (for example, a Direct Loan or Federal
Stafford Loan)."

So does this mean that I'm not eligible if I'm currently 90 days late or if I've ever been 90 days late on any debt?  I currently have one very small ($149) medical debt and a $400 credit card chargeoff that I'm in the process of disputing on my credit report.  (Transunion has removed them but I'm still waiting on Equifax and Experian) If I get these classified as Paid Chargeoffs before the credit check, will I be approved? I've been late on credit cards in the past but I'm current on everything right now except for those two negative items. Also, does anyone know when grad plus loans disperse?


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Re: Grad PLUS adverse credit histoy?
« Reply #1 on: September 14, 2008, 09:44:11 AM »
I believe the 90 day thing refers only to "current" debt; so if company X reported you >90 days ago, and the debt has not been resolved, you must resolve the debt. If its <90 days ago, or >90 days but already resolved, then you should be good to go.

I don't think the dispute matters, unless the dispute has been resolved. The logic here is probably that you should've disputed the debt right away rather than waiting for more than 90 days.