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Question about adverse Credit check for Fed Plus loan

Started by Matt199, June 28, 2018, 07:59:40 am

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Matt199

Hey guys, so I'm planning on applying for a Masters Program in nursing, but the tuition in total with living expenses is around 140,000.  I plan on taking out as much as I can in a Stafford Loan, but I will have to borrow from Fed Plus loan as well.

over 6 years ago, a family member forged my signature to simultaneously rent a Town Home and an apartment building when i was 21 years old in community college.  Said family member stopped paying and moved in with someone so both the Town Home and the Apartment weren't being paid for.  Resulting in a Debt collection opened up for about 10,000 back in 2012. The Debt has remarks "disputed, and joint" on it

My question is, Will this count as adverse credit?  I'm confused on whether adverse credit is Any debt above 2085$ in collections or charged, or if its any debt over 2085 in collections or charged opened during the two years preceding the credit check.

Everything else on my credit is fine, 100% payment history, my undergrad student loan is fine, i have a paid off car as well. 

TheCollegeInvestor

Yes, it could potentially affect you. What's your credit score? Have you worked to get it removed from your credit reports? Did you file a police report against the person that forged your information?

Matt199

It was a parent that did it when i was 21.  So I never called the police.  My credit scores are 700 and 736.  100% payment history on all my accounts except for that one which is 6 1/2 years old. 

Matt199

Quote from: TheCollegeInvestor on June 29, 2018, 08:16:39 am
Yes, it could potentially affect you. What's your credit score? Have you worked to get it removed from your credit reports? Did you file a police report against the person that forged your information?


I'm afraid to even call the collection agency because that could reset the statute of limitations on the debt.  The debt is supposed to fall off my record after 7 years.  When I emailed Fed Plus people, they gave me an unclear answer, they said it could effect me.  But by their definition of "adverse credit" mine wouldn't qualify for adverse because o the date it was opened in collections.

TheCollegeInvestor

Its tough to say - if you are rejected, there is an appeals process that you can submit this information, including that you've already disputed it. That might help your case if they don't approve initially.