HOW LONG IS A PLUS LOAN CREDIT CHECK GOOD FOR

With the 2018-2019 FAFSA available beginning on October 1, 2017, schools will be able to complete COD Web credit checks for 2018-2019 PLUS Loans beginning on October 1, 2017.

So how long is a credit check on a PLUS Loan good for?

Credit checks are good for only 180 days from date the credit check was performed. If more than 180 days has passed between the date the credit check was conducted and the date the Direct PLUS Loan origination record is processed, a new credit check will be conducted. Therefore, it is important for schools to carefully consider the timeframe between completing a COD Web credit check and Direct PLUS Loan origination record processing for the 2018-2019 Award Year. This applies to both Parent PLUS and Grad PLUS Loans.

HOW EARLY FAFSA IMPACTS PLUS LOAN CREDIT CHECK DURATION

With the 2017-2018 FAFSA available beginning on October 1, 2016, schools will be also able to complete a PLUS Loan Credit Check on COD for 2017-2018 beginning on October 1, 2016. However, the start of COD System processing for the 2017-2018 Award Year is planned for late March 2017 so schools will not be able to create origination records until then. Schools should take note and adjust their awarding processes to account for COD system availability when packaging PLUS Loans for parents and for graduate students.

PLUS LOAN CREDIT CHECK DURATION

Credit checks are good for only 180 days from date the credit check was performed. If more than 180 days has passed between the date the credit check was conducted and the date the Direct PLUS Loan origination record is processed, a new credit check will be run.  This causes additional credit inquiries which could affect a borrowers credit score and may return a different result. Therefore, it is important for schools to carefully consider the time-frame between completing a COD Web credit check and Direct PLUS Loan origination record when processing for the 2017-2018 Award Year.

How long is a PLUS Credit check good for?

When a parent or graduate student wishes to take out a PLUS Loan, they must pass a credit check. Schools often ask how early the credit check can be completed. Here’s the answer:

Once a credit check has been completed, a PLUS loan must be originated on the COD system within 180 days; otherwise a new credit check must be done.  

If a borrower wishes to take out another PLUS loan in future academic years, a new credit check will be conducted automatically by the Department if the COD system receives a loan origination record.