DLB-08-22: Insert To Correspondence Package For PLUS Applicants With Adverse Credit Determination

Publication Date: September 17, 2008

Bulletin ID: DLB-08-22

Summary: Insert to Correspondence Package for PLUS Applicants with Adverse Credit Determination

Dear Direct Loan Colleague:

Recent changes in the law that governs the terms and conditions of PLUS loans establish a specific extenuating circumstance for certain PLUS loan applicants who would otherwise be considered to have an adverse credit history. Specifically, a PLUS loan applicant may qualify for a PLUS loan based on extenuating circumstances if the applicant -

  • Has been or is delinquent for 180 days or less on mortgage loan payments, or on medical bill payments for the applicant or the applicant's family, and 
  • Does not otherwise have an adverse credit history as determined in accordance with the federal regulations that apply to PLUS loan applicants.

Starting the week of September 15, 2008 and going forward, we will include an insert explaining the new provision in all correspondence packages sent to Direct PLUS Loan applicants who receive an adverse credit determination. The insert advises applicants who believe they may be eligible for a Direct PLUS Loan based on the extenuating circumstance described above to complete the credit appeal process through the Applicant Services Department at the COD School Relations Center.

In general, this notification to Direct PLUS Loan applicants should have no more impact on a school's processes than is usually the case with adverse credit determinations. The insert merely informs the applicant of an additional basis for submitting an appeal under our established credit appeal procedures that are explained in the adverse credit determination correspondence package. For informational purposes only, we have included a copy of the insert as an attachment to this bulletin. A school should not provide this insert to Direct PLUS Loan applicants.

If you have questions about the information contained in this bulletin, please contact the COD School Relations Center at 800/848-0978 or by e-mail at CODSupport@acs-inc.com.


William Leith
Acting General Manager, Application, Operations and Delivery Services


Insert to Correspondence Package for PLUS Applicants with Adverse Credit Determination in PDF Format, 101kb, 1 page 


Publication Date: 9/17/2008

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