• you have one or more debts with a total combined outstanding balance greater than $2,085 that are 90 or more days delinquent as of the date of the credit report, or that have been placed in collection or
• charged off (written off) during the two years preceding the date of the credit report; or
• during the five years preceding the date of the credit report, you have been subject to a
  • default determination,
  • discharge of debts in bankruptcy,
  • foreclosure,
  • repossession,
  • tax lien,
  • wage garnishment, or
  • write-off of a federal student aid debt.

If you have an adverse credit history, you may still receive a Direct PLUS Loan through one of these two options:

1. Obtaining an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay it. If you are a parent borrower, the endorser cannot be the child on whose behalf you are borrowing.
2. Documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances relating to your adverse credit history.

With either option 1 or option 2, you also must complete credit counseling for PLUS loan borrowers on the Federal Student Aid website. 

If you are unable to obtain a PLUS loan, your student may be eligible for additional unsubsidized loans. Remember, Parent PLUS loans are only available to parents of dependent, undergraduate students. 

Please Note: If an appeal or an endorser is approved at a later date, the additional unsubsidized loan will be removed and the PLUS loan will be added to the student’s account.