You may still be eligible to receive a Direct PLUS Loan. To become eligible, you may take one of the following actions:
1. Obtain an endorser and complete PLUS Credit Counseling.
- An endorser is someone who does not have an adverse credit history and agrees to repay the loan if you do not repay it.
- The endorser may not be the student on whose behalf you are requesting the Direct PLUS Loan.
2. Document to the satisfaction of the U.S. Department of Education that:
- The information causing the adverse credit decision is incorrect.
- There are extenuating circumstances relating to the adverse credit history. (Note: Endorsers aren't eligible for this option.)
- Complete PLUS Credit Counseling.
Provide a statement that contains an explanation of your extenuation circumstances and the documentation applicable/appropriate to support your claim.
The Secretary is able to use discretion and, based on your circumstances, consider whether extenuating circumstances allow you to qualify for a loan.
- The information below is a non-exhaustive list of examples of extenuating circumstances.
- If you believe that your situation fits within these examples, or presents a situation that otherwise qualifies for extenuating circumstances, review the information under Proof of Extenuating Circumstances to determine if your circumstances could qualify you for review.
- Review does not guarantee approval.
- Previous approval based on extenuating circumstances does not guarantee further approvals.
- Additional documentation may be required beyond the basic requirements listed below.
- Loss of a job, poor economy, etc. alone are generally not considered extenuating circumstances.