Adverse Credit History

What is Adverse Credit History?

Adverse Credit History meaning To qualify for a Direct PLUS Loan, you cannot have an adverse credit history. A credit check is conducted on all Direct PLUS Loan applicants. Your credit history is considered adverse if your credit report shows that you are experiencing any of the following credit conditions:

  • Accounts with a total outstanding balance greater than $2,085 that are 90 or more days delinquent as of the date of the credit report, or that have been placed in collection or charged off during the two years preceding the date of the credit report.
  • Default determination during the five years preceding the date of the credit report.
  • Bankruptcy discharge during the five years preceding the date of the credit report.
  • Repossession during the five years preceding the date of the credit report.
  • Foreclosure during the five years preceding the date of the credit report.
  • Charge-off/write-off of a federal student aid debt during the five years preceding the date of the credit report.
  • Wage garnishment during the five years preceding the date of the credit report.
  • Tax lien during the five years preceding the date of the credit report.

 

reference: Federal Student Aid – Glossary

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