Credit Check

Graduate Plus Loan borrowers are required to pass a simplified credit check, meaning that the Department of Education is not looking for a certain credit score or for an extensive credit history, but simply the absence of an adverse credit history.

The following will cause a Graduate Plus Loan to be denied:
  • A current delinquency of 90 days or more; this includes unpaid collection accounts and charge-offs.
  • Default in the past five years.
  • Defaulted loan that has been claim paid.
  • Chapter 7, 11, and 12 Bankruptcy (Chapter 13 OK) in the past five years.
  • Discharge in the past five years.
  • Foreclosure in the past five years.
  • Foreclosure proceedings started.
  • Deed in lieu of foreclosure.
  • Lease or contract terminated by default.
  • Repossession in the past five years.
  • Tax lien (county, state, or federal) in the past five years.
  • Wage garnishment in the past five years.
  • Voluntary surrender in the past five years.
  • Write off of Title IV debt in the past five years.

Students denied a GradPlus Loan will receive a letter from the Department of Education informing them of the denial, and UMB will be notified electronically. Denied students have two options to still get the GradPlus Loan:

  1. Review their credit report (which can be done for free on www.annualcreditreport.com) for possible errors and correct any others before appealing directly with the Department of Education.
  2. Find a credit-worthy endorser to co-sign on the loan; this endorser will then be responsible for the loan should the student default on the loan at any point during the life of the loan.