Posted Date:April 19, 2013
|Author:||Jeff Baker, Director, Policy Liaison and Implementation, Federal Student Aid|
Subject: PLUS Loan Applicant Communications
On April 21, 2013, we will begin sending emails (or letters when we do not have an email address) to certain Direct PLUS Loan applicants who have been denied a PLUS Loan because of an adverse credit history. The email, which is in addition to the standard denial communication, will be sent to applicants who we believe are likely to be approved if they request reconsideration of the initial PLUS Loan request denial.
This new communication will invite the applicant to contact our Student Loan Support Center at 1-800-557-7394 for more information and will encourage them to request reconsideration of the initial PLUS Loan denial. The applicant (not the school or the child of a parent applicant) should contact the Student Loan Support Center as soon as possible to avoid the need for an additional credit check. Typically the reconsideration process can be completed in just a few minutes.
While we cannot guarantee that these applicants will be approved for a PLUS loan, our recent experience in conducting this type of special outreach has shown that most such targeted applicants are subsequently approved for PLUS Loans, even if nothing in their credit report has changed.
We also want to alert you that beginning June 28th, the Common Origination and Disbursement Web system will include a flag that indicates that an applicant has been sent the special communication that he or she may qualify for a PLUS Loan under the reconsideration process. A report listing the applicants who received the communication will be available to institutions. More detailed information will be available as part of the June 28th, COD Release 12.2 communication process.
If you have any questions concerning this information please contact the COD School Relations Center at 1-800-848-0978.