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Students and staff walk to or from the Health Education Center on the WesternU campus Esplanade.

Grad PLUS Loan Denials

Options Following a Grad PLUS Denial

The Graduate PLUS Loan, unlike other federal educational loans, is credit-based. The credit review does not evaluate income-to-debt ratios or credit scores. To qualify, you cannot have an adverse credit history. Your credit history may be considered adverse if you are experiencing any of the following credit conditions:

  • Bankruptcy discharge within the past five years.
  • Voluntary surrender of personal property to avoid repossession within the last five years.
  • Repossession of collateral within the last five years.
  • Foreclosure proceedings started.
  • Foreclosure within the last five years.
  • Conveying your real property that is subject to a mortgage (by deed) to your lender to avoid foreclosure (deed in lieu of foreclosure).
  • Accounts currently 90 days or more delinquent.
  • Unpaid collection accounts.
  • Charge-offs/write-offs of federal student loans.
  • Wage garnishment within the last five years.
  • Defaulting on a loan, even if the claim has been paid.
  • Lease or contract terminated by default.
  • County/state/federal tax lien within the past five years.

Direct Loans does not share the details of the denial of your grad plus loans due to privacy laws. In order for you to receive this information you can contact the Student Loan Support Center at 1-800-557-7394.

You can still attempt to obtain the Grad PLUS Loan through one of the options detailed below.