Is there a credit check for GradPLUS loans?

Yes, there is a credit check for GradPLUS loans that primarily checks for any signs of “adverse credit.”

A GradPLUS loan applicant is considered to have adverse credit if any of the following conditions apply:

• The applicant is 90 days or more delinquent on the repayment of any debt

• The applicant has had any debt discharged in bankruptcy during the 5-year period before the date of the credit report

• The applicant has been the subject of a default determination on any debt, a foreclosure, a tax lien, a repossession, a wage garnishment, or a write-off of a Title IV debt during the 5-year period before the date of the credit report

• The lender must obtain a credit report on the borrower from at least one major credit bureau

• If a student is turned down for credit, the student may chose to appeal the decision to the individual’s lender (each lender will have a different appeal process) or re-apply with an endorser

• The absence of a credit history is not considered adverse credit

Tagged: Credit Score, Debt, Federal Loans, GradPLUS Loans