background check + defaulted student loan ..

meanmaryjean, DNP, RN · Aug 11, 2012

Is it a criminal background check? If so, your financials will not show up unless you've been convicted of a crime.

However, if you're 90 days overdue - you didn't miss 'a' loan due date. If they are looking into your credit background, you may have a problem.

Nici_StudentRN · Aug 11, 2012

Unless you have specifically given this potential employer permission to do a credit check, they're most likely only doing a criminal background check. Often times the only places you will find doing a credit check are those in which you will be handling money. And unless they specified that you had to be up to date on student loans I would not be concerned with this as far as not getting hired but you will want to contact whomever is servicing this loan and get it straight with them so as not to go into default, again this will not prevent you from getting employment unless that is a specific contingency to getting the job BUT they will garnish tax returns if you mess with the Federal Government for too long.

I am really unable to decipher what your true concern is here though by the grammar. If I am understanding your last question you are wondering if they will put your loan back in good standing without paying the full balance? The only way a loan will be in good standing is if you pay the past due to date. Unless you are granted a forbearance this balance will continue to accumulate.

But once again, this isn't something that you should be concerned with unless your job offer was contingent upon having a certain credit score (which again is unlikely).

Inori, BSN, RN · Aug 12, 2012

Yes that's my concern that job offer would be rescinded due to defaulted on federal loan .. uhm this is a gov job. I remember one of the questoins asked if i was in default with a fed loan, at the time i answered no but that was before i found out about it. SO monday i will call up collections or whoever has loan, pay it to current and contact employer tell them i've resolved it. hopefully that works out otherwise i'm in alot of trouble. --

meanmaryjean, DNP, RN · Aug 12, 2012

I think you are already in a lot of trouble with this job. How did you not know it was in default? Do you not pay attention to your finances? (Sorry - I just find it very difficult to believe you never had ANY inkling about this)

Inori, BSN, RN · Aug 12, 2012

Thanks for all your feedback and information. This would be my first erm loan default though when one has to choose between paying loans or eating/transportation not much of a choice. Many factors play in otherwise it doesn't matter the how or why that its late. Paying up to date or clearing balance will fix it so will be doing that.

JustBeachyNurse, LPN · Aug 12, 2012

If you were having trouble paying the loan, for future reference you should have contacted the lender and made either arrangements for a lower payment or a forbearance until you had sufficient resources to make your payments.

For a governmental job, yes you there is the possibility that you could lose your job offer for two reasons 1. you didn't tell the truth on your application about being in default (depending on the conditions of your loan agreement 90 days may be considered delinquent bot default, read your loan documents) and if you are in default, 2. the default is on a federal student loan. You need to call the lender first thing Monday morning and make sure you take name/id# when you make your payment arrangements. Forbearance can be backdated to an extent to bring your account current.

For future reference, if your loan is in fact in default you would also have to be concerned about potential wage garnishment, garnishment of any federal or state tax refund, and the potential to have your nursing license suspended and/or revoked (if not licensed already, being ineligible for a professional license).

Going forward be proactive, unlike other bills, there are multiple ways to make arrangements for federal student loans (not so much for private student loans) so that you do not become in default including deferments (including deferments for periods of unemployment, underemployment, and/or receiving public assistance), forbearance (even if your interest is added to your principal thus increasing the amount you owe overall it's better than wage and refund garnishment and risking your professional license), graduated payment plans or temporary reduction in monthly payment. But you MUST contact the lender so that they can work with you, ignoring the phone calls, emails, and letters does no one any good. It's hard to ask for help, but they cannot help unless you contact them.

Good luck.

Inori, BSN, RN · Aug 12, 2012

@Beachynurse - thank you for detailed answer I will find out first thing monday morning if i am in default, if so how to bring it to current THEN quickly contact employer to let them know. what a mess. I'll update on the result

HouTx, BSN, MSN, EdD · Aug 13, 2012

Just an FYI - some states (like mine) don't allow you to renew your professional license if you have defaulted on student loans. This is not just for nursing, but all professional licenses.