Credit Check

After receiving the PLAP form, the Office of Financial Aid will electronically transmit the information to Direct Loan Origination and Applicant Services. LOAS will process the loan and run a credit check on the parent borrower. If the applicant is ninety days delinquent on any account, has declared bankruptcy, or has had a financial judgment, the PLUS loan will be denied. The LOAS will notify the applicant and identify the name & phone number of the agency that reported the adverse credit status. If the credit data is inaccurate, the loan denial decision may be appealed by contacting LOAS. Please note that the Office of Financial Aid is not provided any information about the reason for the denial. All loan denial appeals are handled by LOAS. LOAS may be contacted at (800) 557-7394.

If the decision was based on accurate information, the applicant may exercise the option to obtain an endorser (similar to a co-signer) on the loan. The LOAS will include an endorser promissory note with the denial letter. The endorser can be the other parent or anyone who meets the above credit criteria and is willing to endorse the PLUS loan. The student may not endorse the parent's loan. The endorser note should be returned to LOAS.

When LOAS notifies our office of the loan denial, we will set the PLUS Loan Origination Rejection Form (PLORF) as a requirement on your financial aid account. An email will be sent to the student's College of Charleston Edisto email account with instructions to check the Student Requirements in the Financial Aid section of MyCharleston. The purpose of the PLORF is to provide options and for the borrower to officially communicate to the Office of Financial Aid exactly what (s)he plans to do about the PLUS denial. We will not cancel the application until we receive the PLORF form.