Eligibility for the Federal PLUS Loan, including both the Grad PLUS and Parent PLUS loans, will depend on the debtor without having a adverse credit history. Determining whether a debtor has a bad credit score hinges on a credit check that is recent.
Concept of a credit history that is adverse
A debtor has a credit that is adverse whenever specific negative occasions show up on the borrowerвЂ™s credit file. These events consist of:
- The borrower has an ongoing delinquency of 90 or even more times (a delinquency that is serious on significantly more than $2,085 as a whole debt
- In the last 2 yrs, the debtor has a lot more than $2,085 as a whole financial obligation in collections or charged down (written off)
- The borrower has had a bankruptcy discharge, foreclosure, repossession, tax lien, default determination or wage garnishment on any debt, or a write-off of a Title IV federal education loan within the last five years