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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Consumer Protection Law
Satisfied Customers: 17483
Experience:  B.A.; M.B.A.; J.D.
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I have been alerted by my credit monitoring service that a

Customer Question

I have been alerted by my credit monitoring service that a Private Student Loan that I had co-signed for is now in a Charge-off status. Prior to this charge-off, my credit score was 720-730, it is now 650, not sure what it will be tomorrow. As timing would have it, my child is scheduled to go away to College in September and I had always thought to apply for a Federal Student loan to assist with the Financial Aid for his tuition. After I found out about the charge off on my account I contacted the agency that placed it there and am going to have the option to "settle" the account, thereby have the status read "charge-off paid" instead of "charge-off" . I am unsure of two things 1) How long will it take for my credit score to raise after I payoff the settlement, will it raise to a decent number by July 2015 at which time I would like to apply for a Federal loan 2) If I apply for a federal loan today, what are the chances of me being approved for with the charge-off listed on my report and a credit score of 650? I don't want to apply if there really isn't any chance of approval. So annoyed right now.. Your honest expert opinion is really needed..Thanks

Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Phillips Esq. replied 1 year ago.
Hello: This isCustomer I am a licensed Attorney and I will be assisting you today.
I have been alerted by my credit monitoring service that a Private Student Loan that I had co-signed for is now in a Charge-off status. Prior to this charge-off, my credit score was 720-730, it is now 650, not sure what it will be tomorrow. As timing would have it, my child is scheduled to go away to College in September and I had always thought to apply for a Federal Student loan to assist with the Financial Aid for his tuition. After I found out about the charge off on my account I contacted the agency that placed it there and am going to have the option to "settle" the account, thereby have the status read "charge-off paid" instead of "charge-off" . I am unsure of two things 1) How long will it take for my credit score to raise after I payoff the settlement, will it raise to a decent number by July 2015 at which time I would like to apply for a Federal loan
Response 1: Your credit score would change as soon as the updated information is reported on your account.
2) If I apply for a federal loan today, what are the chances of me being approved for with the charge-off listed on my report and a credit score of 650? I don't want to apply if there really isn't any chance of approval. So annoyed right now.. Your honest expert opinion is really needed..Thanks
Response 2:It is less likely for another loan to be approved when you have a history of not paying for the previous one.

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