Credit approval is valid for three months. Your credit is evaluated every time you request a new loan unless you have had a credit decision within the preceding three months.
If you think you may have one or more of the items outlined in the credit requirements listed above you may want to obtain your credit report in advance. You may be able to fix an item such as the delinquency by simply making a payment and bringing your delinquency to less than 90 days. If you have had a situation with a discharge or collection item for example, you may be able to obtain a “settled in full” status if you work with the entity to reach a satisfactory arrangement. If you are able to fix an item, it is no longer considered in the credit evaluation and it may result in your credit being approved.
Credit Denial Options
If your Parent PLUS Loan is credit denied, there are additional options available to the parent. At the time of denial, the Direct Loan online application process will provide information regarding obtaining an endorser or appealing a credit decision or the parent can contact Applicant Services for PLUS Loan borrowers at 1.800.557.7394.
PA College will also be informed of this credit denial within a 3 to 5 day time frame. At that time, PA College will offer the student additional Federal Direct Unsubsidized Loan eligibility that the student can accept in Self-Service.
What happens if the parent endorser or credit appeal is approved?
PA College will receive notification from Direct Lending and the Federal Direct Parent PLUS Loan will be awarded in the student’s Self-Service portal. If the additional Federal Direct Unsubsidized Loan was already awarded to the student at the time the Fedreal Direct Parent PLUS Loan endorser/credit appeal is received, the additional Federal Direct Unsubsidized Loan will be cancelled and the Federal Direct Parent PLUS Loan will be awarded in its place.