A credit report will be reviewed for the borrower to determine absence of negative credit.
Federal Direct PLUS loan approval is based on absence of adverse notations on the borrower's credit report as reviewed by the lender (the U.S. Department of Education). A borrower is not eligible to receive a Direct PLUS loan if the borrower has an adverse credit history as determined in accordance with the Department's regulations. A credit check is conducted on each Direct PLUS Loan applicant to determine if the applicant meets this eligibility requirement. A Direct PLUS Loan applicant is considered to have an adverse credit history if he or she meets one or more conditions for a denied credit check.
Direct Loan regulations provide that an applicant who is determined to have an adverse credit history may receive a Direct PLUS Loan if the applicant obtains an endorser who does not have an adverse credit history, or documents to the satisfaction of the Secretary the existence of extenuating circumstances related to the adverse credit history. If a borrower is denied a PLUS loan, only the lender can discuss the reasons for a denial. On occasion, a denial due to discrepancies on a credit report can be resolved. A denied borrower has the option to re-apply with a creditworthy endorser (cosigner). Additional counseling is required if a denied borrower is subsequently approved either through reconsideration or obtaining a an endorser co-signer.
If a Parent PLUS is denied, the parent may obtain an endorser/co-signer for the loan.
If a Graduate PLUS is denied, the student may obtain an endorser for the loan.
If a Parent PLUS is denied and the parent obtains no endorser, the student may be eligible for a limited amount of additional Direct Unsubsidized Stafford Loan.
5. Monitor Financial Aid Application and Loan Disbursement Progress through the Tulane Gibson Online System
Tulane University maintains an online system called Gibson Online.
Through Gibson Online, a student may track his or her financial aid application file completion status (including any documentation requirements that need to be completed), accept or decline packaged loan eligibility (and other financial aid), and track the progress of loan disbursement. A student may also view his or herTulane Accounts Receivable (billing) credits (including loan disbursements) and charges.
6. Note That Disbursed Loans May Be Revised: When Borrower is Overawarded; When Borrower Does not Complete Expected Enrollment and Earn At Least One Passing Grade; Maintain Satisfactory Academic Progress for Continued Eligibility
Disbursed loans may be partially or completely taken back (returned) if the student is overawarded with financial aid (it is found that the student's total financial aid exceeds their Cost of Attendance for the same period) or if the student does not complete expected enrollment and earn at least one passing grade for the loans' attributable semester.
Eligibility to borrow educational loans may be taken away if a student does not maintain Satisfactory Academic Progress.
7. Exit Counseling
When a student Direct Loan borrower graduates or otherwise ceases enrollment, Direct Loan exit counseling is required.