Credit Check

Parent 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 Parent PLUS Loan to be denied:
  • A current delinquency of 90 days or more, including 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.

Parents denied a Parent PLUS Loan will receive a letter from the Department of Education informing them of the denial; UMB also will be notified electronically. Denied parents have three options:

  1. Review their credit report (which can be done for free on for possible errors and correct any errors before appealing directly with the Department of Education.
  2. Find a credit-worthy endorser to co-sign on the loan; this endorser will be responsible for the loan should the student default on the loan at any point during the life of the loan.
  3. Elect to have the PLUS Loan remain denied and the student will be offered additional unsubsidized loans up to the maximum eligibility of an independent undergraduate student.