PLUS Adverse Credit Reconsideration Loan Counseling

Section 428B(a)(1)(A) of the Higher Education Act of 1965, as amended (HEA), provides that to be eligible to receive a Federal PLUS Loan under the Federal Family Education Loan (FFEL) Program, the applicant must not have an adverse credit history, as determined pursuant to regulations promulgated by the Secretary. In accordance with section 455(a)(1) of the HEA, this same eligibility requirement applies to applicants for PLUS loans under the Direct Loan Program. Since July 1, 2010 the Direct Loan Program is the only Federal loan program that offers Federal PLUS Loans. The adverse credit history section of the eligibility regulations in 34 CFR §685.200 (b) and (c) specify an applicant for a PLUS loan who is determined to have an adverse credit history must complete loan counseling offered by the Secretary before receiving the Federal PLUS loan. The Department is requesting an extension to the information collection regarding the adverse credit history regulations in 34 CFR §685.200 (b) and (c) and the burden these changes create for Federal PLUS loan borrowers, both parent and graduate/professional students.

The latest form for PLUS Adverse Credit Reconsideration Loan Counseling expires 2021-01-31 and can be found here.