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Federal Direct PLUS Loan Endorser - FICO impact?

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Federal Direct PLUS Loan Endorser - FICO impact?

Hi all,

 

If a person becomes an "endorser" on a Federal Direct PLUS Loan (for another parties' Graduate study), what impact does it have on their FICO score, if any?

 

Kindly note that the specific term used by the U.S. Department of Education is endorser. They are clear that this individual is *not* a co-signer. Rather, as an endorser, they are secondarily responsible for repayment, in the unlikely event the borrower defaults. In this way it is more akin to a guarantor.

 

Does an endorser on a Federal Direct PLUS Loan see any impact whatsoever their FICO score? Obviously they would if the borrower were to become delinquent. But at the outset, and assuming there is no delinquency, is there a change in the score?

 

Appreciate any help you can provide.

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