National Association of Student Financial Aid Administrators

ED Modifies Credit Criteria for PLUS Loans

The Department of Education (ED) added unpaid (with a balance greater than zero) collection accounts and charge offs in their review of PLUS applicants’ credit history, effective with the COD release at the end of October. An applicant has an adverse credit history if on the date of the credit report, the applicant is 90 or more days delinquent on any debt, or has been the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a debt under title IV of the Act during the five years preceding the date of the credit report.