Credit Worthiness

Approval of GradPLUS and private loans is based on creditworthiness, not financial need as determined by need analysis.

Lenders require a good credit report on the applicant and cosigner, if applicable. If your credit is deemed unsatisfactory, GradPLUS and private loans will not be approved. Although lenders may vary slightly in their criteria for good credit, most agree that a credit report cannot include bankruptcies, foreclosures, repossessions, charge-offs, open judgments, or excessive past due accounts within the past two years.

In addition, there must be no prior educational loan defaults, unless they have been paid in full or satisfactory arrangements for repayment of same have been made. Moreover, for co-signers, GradPLUS and private lenders will calculate a debt-to-income ratio, including the amount of the loan being applied for. If the debt-to-income ratio exceeds a certain index, the loan may be denied.