Bulletin ID
DLB - 98 - 13
| PublicationDate: 4/1/98 BulletinID: DLB - 98 - 13 April 1998 DLB-98-13 Subject: Prohibition on Students Acting as Endorsers on Their Own Behalf for Direct PLUS Loans Dear Colleague: This bulletin is to remind you of the policy prohibiting students from acting as endorsers on Direct PLUS Loans taken out on their behalf. This policy was first stated in Direct Loan Bulletin #2 published in February 1996. The bulletin explains that this change was necessary. To promote sound borrowing practices and to reduce the Departments risk in lending, it is necessary to . . . prohibit students from acting as endorsers on Direct PLUS Loans taken out on their behalf. Please remember that the statute provides for a students additional eligibility for Direct Unsubsidized Loans in the event that the parent is denied a PLUS loan. This policy remains in effect. We hope, by restating it, to reduce the number of unnecessary delays in processing PLUS loan applications. Thank you for your continued support. Sincerely, Joe L. McCormick Chair Direct Loan Task Force |