Consumer Protection Law
Consumer Protection Law Questions? Ask a Lawyer Now.
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