Monday, May 9, 2011

Here is my Grad Plus Student Loan Guide: How To Get Approved!


The Truth About Grad Plus Loans


Like many people applying for a Grad Plus loan I have less than perfect credit, in fact my credit is down right bad. However, I was able to get approved for a Grad Plus loan without a cosigner, I will explain how the process works. Hopefully the information I provide will alleviate some of your Grad Plus induced Stress. Much of the info I will include was quite difficult to obtain, which I why I have decided to make this guide. This guide will benefit those with less than perfect credit more then those with good credit but it will serve as a guide for all those who are applying.

Give yourself PLENTY of time! I recommend starting this process during the early Fall, the year before you intend to go to law school. (If you plan to start school in the fall of 2012 start working on this in the fall of 2011) The early you begin the better off you will be.

Some basic Info about Grad plus loans

They are not credit based in the sense that most loans are. Debt to income ratio and credit scores mean nothing for this loan.
The .gov uses Equifax, this is the reporting agency to focus on
If you have bad credit you will likely be denied, but an appeal is available.

Step 1) Obtain a copy of your credit report from https://www.annualcreditreport.com/ Dispute EVERTHING negative on your report. For collection accounts that I disputed I wrote “ I have no contractual or legal obligation to this creditor” I’m not sure if the aforementioned is true, but it did get nearly all collection agency’s removed from my report.

Step 2) Complete your Grad Plus loan entrance counseling and fafsa at https://studentloans.gov/

Step 3) Complete your MPN (master promissory note)

Step 4) Apply for your Grad plus loan at http://www.studentloans.gov

Appeal process

I was denied and DID not use the appeal process from the studentloans.gov website. I instead contacted direct loans and asked told them I wanted to start an appeal and gave them my information. You will contact the COD (Common Origination and Disbursement system) Their phone number is 1.800.557.7394.

Here is what they look for when doing a credit check, contrary to popular belief the info you find online and even on their websites is NOT accurate.
(This is directly from a private, direct loans email)

“We can accept documentation that the account(s) is now current, paid-in-full, is less than 90 days past due, charged off, or turned over to collections. The documentation must be on the creditor’s letterhead and specifically reference the account number(s) and be dated. For accounts not paid-in-full, the letter needs to be dated recently. Proof that a payment agreement has been entered into must be accompanied by proof of first payment.
If it is a student loan account, proof of deferment or forbearance is acceptable as long as the student loan account has not gone to collections.
In the case of a mortgage account we can accept documentation showing the account has been rectified either through payment, loan modification, or short sale.”


They do not care about collection accounts or anything as long as you are making payments. If you have a bunch of unpaid debt and you can’t find a cosigner all you need to do is contact the collection agency or creditor and set up a payment plan. Make sure you get this plan in writing and get receipts for anything you pay. Even if you are paying $10 per month on 25k, it doesn’t matter; they just want to see some kind of payment arrangement in place. It does not appear that they care about charge-offs, these are very negative credit report items but since these are closed accounts they don't matter, at least this was the case for me.

There you have it, if you follow this advice you WILL get approved for a grad plus loan. If I was able to get approved than nearly anyone can get approved.

47 comments:

  1. I'm not really in need of a student loan, but one of my friends is. I'll be sure to forward this on to them.

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  2. My credit is good, but I still might be in need of this!

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  3. Sounds intereseting too bad I can't get this in my country

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  4. Its nice to get insight into another country's "student loans." If I ever plan to study abroad, I may need this.

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  5. So many students, including myself, are in debt right now. Loans are painful :(

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  6. wow thanks for the infos, i'm a student too and always need money...

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  7. Lucky we in europe don't have to pay this much cash to study, seriously!

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  8. Excellent info!! Thx for sharing!!!

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  9. Sounds interesting, if not a hassle to do

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  10. Interesting coincidence- I just finished undergrad.

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  11. Brilliant info. A lot of my friends are just finishing so this could help them a great deal.

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  12. Thats for that! I'll need to keep this in mind.

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  13. Or you just ask your dad to pay the stuff you need. For example, I could never finish my first year at college without cable TV and internet in my rented apartment :3

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  14. WoW didn't know that. Knewing that earlier would've helped me much more! Anyway thanks for this amazing advice.

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  15. Great article. I currently have a few friends on loan hunts. gonna forward them this post asap

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  16. This will be helpful in the future.

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  17. Nice write up. I was worrying a little about student loans in the future. Although I'm in the UK so I'm not sure how much sticks when it comes to differences.

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  18. This may come in handy someday.

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  19. I get to go to college for free, no loans, none of that crap.

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  20. hey I told my friends, they will check it out on here

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  21. Good advice. Fortunately, I'm done with school; but you never know, might go back for that Master's.

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  22. Useful! I can see myself using this in the near future! bookmarked.

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  23. Thanks for the guide, I'll be following it soon.

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  24. this post is useful. nice infos and good advices

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  25. i found this so complicated when i had to do it, i bet this could help many.

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  26. this stuff is tricky.. thanks for the help man :D

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  27. This will come in handy next year thanks man

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  28. Thanks, linking to my cousin, he will find this very interesting!

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  29. I really should go back to school, in which case this would be useful, but I'm way too lazy right now. Following anyway.

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  30. Hehe, school's free on my country, on all levels :D

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  31. Very interesting. You are a wise one sir.

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  32. Good post and Smart Blog
    Thanks for your good information and i hope to subscribe and visit my blog STD Symptoms and more Scabies Home Remedies thanks again admin

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  33. Great insight! It is often only possible to find out if a company operates in the way they claim on their website by actually trying the service first. But there are certain rules you can follow before you sign up to a loan to check out the service first. What Is Lenders Mortgage Insurance???

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