Loans & BAD credit

  1. The topic of "how do I pay for school" has come up several times on this board, and I've read the good advice about not worrying about working through school, and just take out lots of student loans.
    Here is my dilemma: I have awful credit. Last spring (2003) I filed bankruptcy after my divorce, and that stays on your credit reports for 7-10 years. I'm hoping start school in about 2 years, and my brother will cosign for me, but am wondering if I will be able to take out enough loans for school with my bad credit history. Has anyone else been in this situation or know of anyone who has had to work around bad credit? Any advice will be much appreciated - thanks!
    Jen
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  2. 24 Comments

  3. by   Dixen81
    I would suggest talking to your school counselor for advice. You are probably eligible for grants and scholarships. Good luck!
  4. by   casper1
    I was in a similiar situation. Went to Nursing school after a divorce.
    One thing I did was to get a job at a local hospital. It was tough working and going to school, but the hospital picked up 3,000 in tuition cost yearly, at a community college this paid my tuition. Look around for a hospital in your area which may have a similiar program. I finished school 12 years ago before they really got nervous about the nursing shortage . Probably more opportunity now.
  5. by   heatherbless
    Quote from JSB
    The topic of "how do I pay for school" has come up several times on this board, and I've read the good advice about not worrying about working through school, and just take out lots of student loans.
    Here is my dilemma: I have awful credit. Last spring (2003) I filed bankruptcy after my divorce, and that stays on your credit reports for 7-10 years. I'm hoping start school in about 2 years, and my brother will cosign for me, but am wondering if I will be able to take out enough loans for school with my bad credit history. Has anyone else been in this situation or know of anyone who has had to work around bad credit? Any advice will be much appreciated - thanks!
    Jen
    as far as I know--Stafford loans do not require credit checks--at least, that is what I was told when I applied...so check into that at your financial aid office.
  6. by   loisane
    Casper makes a good suggestion for nursing school. But you probably already know, it is not a good idea for anesthesia school.

    Whatever you do, do NOT plan on any employment during anesthesia school. It simply isn't possible. And if you are in a situation of HAVING to work to keep food on the table, your grades will surely suffer.

    I am sorry that I don't have any words of wisdom as to what IS a good idea. The only thing I can think of is to be sure not to have a falling out with your brother between now and then!

    loisane crna
  7. by   JSB
    I have talked to a few CRNA schools, and they have all advised me to plan financially as if I expect to get NO scholarships, as they are very rare. I will need more than a Stafford loan (even if I get the full $18,500/yr), so I am more concerned with bank loans for education. Are banks more likely to make loans for CRNA school based on the earning potential once school is done, or am I somewhat out of luck until my credit clears? I don't want to wait that long. Thanks!
  8. by   loisane
    JSB,

    I know many people on this board have valid negative feelings about accepting a sponsorship before/upon entering school. But yours might be a situation where the pros outweigh the cons.

    loisane crna
  9. by   Roland
    A strong co-signer will alleviate most credit difficulties. Here are a few things that will tend likely improve your credit score:
    1. Get your credit report (preferably a tri-merge) and make sure that ALL accounts included in your BK are actually reporting that way. Often some accouts will go on showing you "delinquent" (as opposed to "included in BK") and these will CONTINUE to depress your credit score.

    2. RE-ESTABLISH your credit, and start to rebuildyour credit score. Take a couple of secured credit cards (if that is all you can get) and KEEP a small balance on them at all time (and pay on time of course) make sure that they report to bureaus.

    3. If you have a mortgage make sure that it reports the same goes with an auto loan. A good "MIX" of credit can go a long way in raising scores.

    4. Keep the ratio of available credit (on your secured cards) to utilized credit at no more than four to one.

    Almost all governmental loans DO NOT ulitize your credit standing in determining eligablility (an exception are so called PLUS loans intended for the PARENTS of those in school). We have gone to a CREDIT SCORE driven, credit industry and I have often seen HIGHER credit scores from those with BK's in their past than even those who have never had a LATE payment. Also, most need co-signers for their Banc One type higher education loans since they are by definition NOT going to be working during CRNA school.
  10. by   rollingstone
    When I went to nursing school the Detroit Medical Center was paying full tuition for students who would agree to work x number of years for the corporation after graduation. I think that most of the students signed on and probably had to work four years or so to fulfill the obligation. I was fortunate enough to get a merit scholarship that paid full tuition for two years. For my last year the DMC paid for tuition and I owed them 18 months of service after graduation and ended up working there five years. If you live near large teaching hospitals definately check this out. Talk to the nurse recruiter. Good luck.
  11. by   Businessman
    The amount of money that you need to borrow is quite high, and it's a strong possibility that you simply won't be able to borrow that.
    Check the Armed Forces programs - no loans there. If I were you, I would check every single school to see who offers stipends in exchange for work commitment.
    Cleveland Clinic is one of them. There must be others as well.

    Good luck... and remember, IF YOU WANT, YOU CAN!
  12. by   TraumaNurse
    I agree with Roland. If you have a co-signer, your credit may not even be checked. Call a BankOne loan officer and speak to them about your situation. Since I had a co-signer (my wife) I did not have to provide any financial info about myself. Also, I think fed money is still available to those with bad credit too.
    If these options are somehow not available, I agree that you may need to look into signing a contract with a group/hospital or go the military route.
  13. by   JSB
    Thanks, guys! I think you're all correct that even though one would not usually want to limit themselves by contracting with a group, it would be worth it in my case. Does anyone have experience in doing this? Where do I start?

    Businessman, I cannot join the military, even though that would solve my financial problem. I have 3 little girls, and I cannot risk being deployed and not seeing them for a year or more (even though I will probably not get to spend much time with them after starting CRNA school, at least I'll get to see them).

    Kstatekat also PM'ed me about looking into Signature loans, in case anyone else out there has a similar situation. It sounds like a good idea.

    Thanks again for your help, everyone. You guys are great!

    Jen
  14. by   Roland
    Also, one more consideration. Not that you are planning to default, but government backed student loans are almost NEVER subject to dismissal in a bankruptcy. The same is not the case with private student loans such as the Banc One loans. Thus, to the extent that their is value in having the "option to default" these loans should be considered cetaris paribus. Of course other factors such as rate, deferiability, and ease of acquisition may dictate the Stafford loan route.

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