topic Re: Parent Plus Loan Qualifications in Student Loans

Parent Plus Loan Qualifications

credithelper — Mon, 02 Dec 2013 15:34:25 GMT

My son will be attending college next fall and we had planned to apply for the Parent Plus loan for his remaining tuition. I just had a couple of small medical collection pop up on my credit report that are under $200 total. My concern is even if I pay those before applying, will the Parent Plus Loan be denied?

Thanks for any help

Re: Parent Plus Loan Qualifications

kroberts67 — Mon, 02 Dec 2013 15:51:36 GMT

If you have "adverse" credit you will be denied. I just spoke to the Direct Plus office last week before applying to ger clarification on my loan, and they were very helpful. From what I understand, if you were to owe on anything then yes, it's considered adverse to them. This is from their website:

Eligibility for the PLUS loan depends on a modest credit check that determines whether the parent as an adverse credit history. 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. The Ensuring Continued Access to Student Loans Act of 2008 extended the 90 days late threshold to 180 days for mortgage payments and medical bill payments during calendar years 2007 through 2009. http://www.finaid.org/loans/parentloan.phtml

My situation was that my lien isn't reported on EQ, which is what they pull 90% of the time (rarely they will pull TU), so I was approved. You might give them a call to ask if you were to pay the collections off and show zero balance, would that be considered adverse?

Re: Parent Plus Loan Qualifications

kroberts67 — Mon, 02 Dec 2013 15:58:53 GMT

Oh, also, if you as the parent are denied, then your student can request an increased unsubsidized loan. You might ask the FA office at his school if you need to actually apply and be denied or not.

Hopefully it will work out for you too, do call the office. Once you get past all the phone button options the wait was not long and they were really nice & helpfull.

Re: Parent Plus Loan Qualifications

credithelper — Mon, 02 Dec 2013 17:56:09 GMT

Thank you for the information. I called the college financial aid office and the Direct Loan office and I really did not get any clear answers. I am going to try and PFD and see what happens.

Re: Parent Plus Loan Qualifications

kroberts67 — Tue, 03 Dec 2013 00:10:09 GMT

Weird. It's a pretty straightforward question. Maybe try calling and getting a different person. Although they might not be able to say whether you would be approved or not, but should be able to give you a clear yes or no if such and such would be considered "adverse". I called 800-557-7394.

Re: Parent Plus Loan Qualifications

credithelper — Wed, 04 Dec 2013 00:29:55 GMT

Yes it is weird because the number you listed is the number I called. I was told by the first person I spoke with to call another number. I will try again tomorrow and see what happens.

I going to pay the medical collection and hope for the best. I could just kick myself. We worked very hard to clean up our credit and this is something I missed.

Re: Parent Plus Loan Qualifications

kroberts67 — Wed, 04 Dec 2013 17:47:57 GMT

@credithelper wrote:
Yes it is weird because the number you listed is the number I called. I was told by the first person I spoke with to call another number. I will try again tomorrow and see what happens.

I going to pay the medical collection and hope for the best. I could just kick myself. We worked very hard to clean up our credit and this is something I missed.

Is it showing on your EQ? That's the one they will most likely pull. I hope it works out for you!

Re: Parent Plus Loan Qualifications

credithelper — Wed, 04 Dec 2013 21:14:04 GMT

Yes it is is on my EQ. However I justed received a call a rep from StudentLoans.gov and I was told that if my report shows the medical bill as paid we will be approved.

Re: Parent Plus Loan Qualifications

kroberts67 — Thu, 05 Dec 2013 16:19:50 GMT

Awesome!