Grad Plus / Student Loan - Update for Summer 2012

[ready4biz]

Quick update.

I went back to graduate school (a million years after completing undergrad) and tuition has skyrocketed since the Good 'Ol days when my parents were paying.

 

Anyway I went to work at a university to help pay some of my graduate tuition. I got reassigned to the Financial Aid department part time and have learned A LOT.

 

Although I was desperately trying to pay for my grad education without more loans, I couldn't do it. I even took out the dreaded Grad Plus loan in Fall 2011/Spring 2012. Last Fall, I was approved immediately (previously did a student loan consolidation with an in-school deferment - and improved my credit profile a lot).

 

But I had heard through my Financial Aid department work, that the Grad Plus loan approval qualifications changed effective Nov 1st. It didn't affect me because my current laon was approved to disperse through Spring 2012.

Early this April, when I applied for a subsequent loan for this upcoming summer school semester, I was SHOCKED to be given a no-decision, followed immediately by a denial "due to adverse credit." So knowing that the Dept of Education (or their related agency, the COD) uses Equifax/CSC, I got copies of both reports.

 

Good News: NO lates, No slow pays, No 30 day/60 day/120 day account issues. No current negatives. Of course NO bankruptcies.

I couldn't figure it out - I checked all the areas that the Dept of Ed used to check before approval.

But there it was: one serious baddie - a 2007 pre-collection (???) on an unpaid $898 utility account with a provider that wasn't even mine - I think it was the knucklehead who moved into my former apartment after me and did a lot of suspect business.

Anyway, I successfully disputed (using the CreditBoard suggestions that rarely fail me), got it removed, did an Appeal of my Grad Plus Loan decision and won!

 

I am wondering if I will have to dispute this with the 2 other bureaus so I'm combing those reports this weekend.

SIDELINE QUESTION- does the fact that one bureau (Equifax) deleted it - give me better leverage with EX and TU?)

 

Anyway, just to let everyone know - the newer Grad Plus Loan requirements are stricter, tougher, and much more no-nonsense.

And remember that effective July 1, 2012: there are NO more unsubsidized graduate/professional loans for ANY students. Although they might raise the UNSUB limits, Grad Plus loans are going to be even more necessary for many students, and now - a lot harder to get.

 

Just a FYI.

Edited April 28, 2012 by ready4biz

[hoapres]

The other CRAs usually will remove the negative tradeline. Wait a month from the deletion by Equifax then order the other 2 credit reports. If it shows up on the other credit reports then a simple letter showing that EQ deleted the negative item should result in the same for EX and TU.

 

Financial Aid qualifications are likely to become more and more difficult as time goes on.

[ready4biz]

The other CRAs usually will remove the negative tradeline. Wait a month from the deletion by Equifax then order the other 2 credit reports. If it shows up on the other credit reports then a simple letter showing that EQ deleted the negative item should result in the same for EX and TU.

 

Financial Aid qualifications are likely to become more and more difficult as time goes on.

 

HOAPres: That sounds like a good plan. I was hoping to use the EQFX deletion as leverage. I'll give it the 30 days as you suggest, then pull and review the others.

And quite honestly, the days of financial aid being completely unrelated to credit rating/credit worthiness (such as they say it is) are long over. To quote a guy I met in Brazil recently:

"It's real in these streets."