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Denied for a private student Loan


vetdr2be
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I am in my 3rd year of Veterinary School. 4 years ago I went through a divorce and got stuck with a credit card charge off. I have spent the last 3 years working on my credit and have managed to get my scores up to eq:689, Ex: 713 and Transu: 678. My question is for those of you who understand how student loans (private) work, are they denying me because of the charge off 3 years ago regardless of my current credit scores? The lending co will not share the reason for denying me other than to tell me they would reconsider with a cosigner. I do not have that option any longer. I am just beside myself as I have close to $175,000 in student loan debt (12 years of college) and I need to finish vet school inorder to have the kind of job to pay this back. Any advice would be more than appreciated as I am lost on were to go from here.

Thanks,

Gina

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Hey Gina, welcome to CIC.

I was in your situation a year ago. The only booboo you have is the chage off from 3 years ago? Is the account still with the original creditor? If it is you may want to try pay for delete if you can afford it.

Try disputing with the CRA as not mine and see what happens.

You may also want to try the Grad plus loans they are a bit more flexible i am told.

Also there is one that approves with scores as low as 620. I will try to find the name for you. I know sallie mae doe sbut the booboo must be paid and more than 2 years old

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They most likely want a 720 FICO. However the standards for a co-signer would be less, like 650. It's stupid and ironic.

Your school does not have medical status? If it did you could borrow all of it in guaranteed staffords.

GradPlus loans require that you have no "adverse" credit history regardless of scores. In my case this meant "no outstanding collections in excess of $500".

In the end, I did end up using a co-signer... it made me sick to ask, it put me under the microscope, and has altered the nature of my relationship. But, I don't know what I could have done without it, except work full time for the bills and come up with some sort of payment plan for the 3 or 4k of tuition that the staffords didn't cover. You should right now be eligible for AT LEAST $18,500 right?

and.. isn't school in session? What are you doing now?

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I have only 2 options for lenders. HealthXpress and TERI. I am in a carribean veterinary school so my options are limited and we do not qualify yet for staffords (school is less than 2 years old) I am in school right now and my last loan was cosigned by my parents. However, they only did it for one year. (Before the divorce, and when I started school, I had very good credit). The good news is, this morning EQ actually deleted the charge off. My credit score jumped to 738 with them. I'm not sure if TU and EQ will do the same.

Also, I got an email from the lending co this morning telling me that reason for denials on my application was for unpaid collections and unpaid charge offs. So, with that in mind, I do not want to apply to TERI until the investigations come back from EQ and TU. I have a little time still as I don't need funding until Summer 08. But my school sent out emails warning us that lending agencies were feeling the crunch of economy and asked us to get a head start on funding. Then told us that HealthXpress would not be lending medical school loans past Spring 2008 so we need to secure the funding before Oct 29th. I really thought my scores were good enough. But from what I'm learning it has nothing to do with my scores.

About paying to delete the account...how much does something like that cost?

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Paying for delete is not a price, it's an arrangement you try to make with the collection agency. Usually they will not accept less than payment in full to even consider a delete, and deletes aren't easy to get to begin with. Usually they want to update the record to "Collection Paid in Full". That won't help your score but it is probably what your educational lender would prefer to see.

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