Qualifying for a parent Direct PLUS loan

by Grace

How can a parent qualify for a Direct Plus Loan?  While some conditions must be met, the government does not impose stringent credit requirements.

From the Federal Student Aid government website:

The parent borrower must not have an adverse credit history (a credit check will be done). If the parent does not pass the credit check, the parent may still receive a loan if someone (such as a relative or friend who is able to pass the credit check) agrees to endorse the loan. The endorser promises to repay the loan if the parent fails to do so. The parent may also still receive a loan if he or she can demonstrate extenuating circumstances.

More details from FinAid:

An adverse credit history is defined as being 90 or more days late on any debt or having any Title IV debt (including a debt due to grant overpayment) within the past five years subjected to default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off.

Unlike most private lenders, the government does not use FICO scores in determining eligibility for federal student loans.

Other information

Related articles

Advertisements
%d bloggers like this: