Do DMP/consolidation plans hurt chances at getting parental financial aid help/loans?
Date: Fri, 05/21/2010 - 14:26
not behind on payments but living paycheck to paycheck. My son is going to college in the fall and I want to rework things so that I have more cash flow to help him out. Should I wait to try and get into a debt management plan until after all of his financial aid is determined and would being in a debt management/consolidation program hurt my chances at getting a parents plus loan if it is needed to help him with tuition?
Mom, Yes, your DMP will affect your ability to qualify for plus
Mom,
Yes, your DMP will affect your ability to qualify for plus loans.
Best to wait until August to enroll.
Mileage may vary
According to DirectLoans.ed.gov, a credit check is done when a p
According to DirectLoans.ed.gov, a credit check is done when a parent applies for a Plus loan and a poor credit score can effect a parent's chances of getting the loan.
A debt management/consolidation program does decrease your credit score when you first enroll in the program, but over time, as you pay off your debt, your credit score will increase and that will help your chances of getting a plus loan. StudentAid.ed.gov has a lot of great resources.