The Federal Loan Origination Applicant Services (LOAS) center will conduct a credit check on the Grad PLUS loan applicant. If the applicant is 90 or more days delinquent on any debt, has been the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a debt under title IV of the Act during the five years preceding the date of the credit report, the Grad PLUS loan will be denied.

The LOAS will issue a loan denial letter to the applicant that will identify the name and telephone number of the agency that provided the credit information. The applicant should call the agency and request a copy of the credit report. After reviewing the report, if the credit data is inaccurate, the loan denial decision may be appealed.

Please note that Student Financial Aid is not provided any information about the specific reason for the denial. All loan denial appeals are handled by the LOAS. The LOAS may be contacted at 800-557-7394, or you may write to the Direct Loan Origination Center at Applicant Services, PO Box 5691, Montgomery, Ala. 36103-5691.

If the denial decision was based on accurate information, the applicant has the option to obtain an endorser, which is similar to a co-signer, on the loan. The LOAS will include an Endorser Promissory Note and information with the denial letter mailed to the borrower.

When the LOAS center notifies Student Financial Aid of the loan denial, we will send out a PLUS Loan denial form. The purpose of this form is to provide options for the applicant to officially communicate to our office exactly what they plan to do about the denial. We will not cancel the application until we receive the form.