The Department of Education (ED) has temporarily extended the time frame that a PLUS credit check will be considered valid.
A PLUS Loan credit check for both, Parent PLUS Loans and Grad PLUS Loans, is now valid for up to 180 days. This is a change from the previous length of time of 90 days for a credit check to be considered valid. This change, not previously announced by ED, was to provide some relief to those applicants that were impacted by changes in the PLUS approval process that was implemented in the fall of 2011. For a limited time, any PLUS applicant that has a credit check that was run less than 180 days prior to the loan origination will not need to have another credit check run prior to processing the loan. If for some reason an applicant has had two credit checks run within the last 180 days prior to applying for the loan, the results of the most recent credit review will be utilized.
NOTE: Presently, this change will only pertain to PLUS loan applicants that apply for a loan prior to February 1, 2013.
If you have any questions regarding the information in this Did You Know, please contact your FAME Customer Service Representatives by calling 800.327.5772 x 5.