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Is my situation less unique than I think?


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Hey everyone,

Thanks for taking the time to address my dilemma.

Currently, I have 4 derogatory remarks on my credit totaling $ 7.5k, contributing to a score of 611; everything else is alright.

3 are small, one is much bigger which I'm detailing below:

This one was last active by the original lender (Bank Of America) in 2006, last payment in 2009, with a credit limit of $2500.

It was charged-off to Calvary @ a balance of $3,148.

Then I made a payment to Calvary (which I think is the big mistake here) and went delinquent again.

Presently the account is at $5,649 and I think it has stopped accruing interest.

I don't have the money to pay even a fraction of that.

In the fall, after years of trying to decide my path in life, I am trying to return to school to begin pre-requisites for PA school. I will know in a week or two where my financial aid stands and how much I may need in extra loans.

I'm afraid I'm screwed on loans. Schooling alone will be over $100k for the next 3.5 years (which I think I could safely get). My worry is living expenses. which will probably be in the neighborhood of $20k/yr with no safety net.

I can't afford to stall out in the middle and not finish (i.e. not qualify for loans the last year and be stuck with a world of debt and no way to repay). Once I finish, however, I'll be an a great position to pay it all back without worry.

Is there any way i can bump my credit score up? I'm not worried about the interest, I just want to get to the profession...

Any thoughts? Suggestions? Etc?

Thanks for your consideration

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You are going to need to pay these off or get them settled before you can attend grad school.  GradPlus loans are very strict on adverse credit history which you can read about here:  https://studentaid.ed.gov/types/loans/plus  There are countless stories of those with defaulted credit cards and collections who are told they cannot get GradPlus loans until they clear them up.  


Can I still receive a Direct PLUS Loan if I have an adverse credit history?

A credit check will be performed during the application process. If you have an adverse credit history, you may still receive a Direct PLUS Loan by obtaining an endorser who does not have an adverse credit history or documenting to the U.S. Department of Education’s satisfaction extenuating circumstances relating to your adverse credit history. If you are a parent borrower, the endorser cannot be the child on whose behalf you are borrowing. 

I am familiar with PA school and you cannot work while attending as it is considered the equivalent of medical school in 2 years and the workload of academics is HUGE.  So you will be living off loans 100% while attending.  

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