MBA Finances

Federal Loans FAQ's

What does "adverse credit" mean?

For the Direct Grad PLUS Loan, you are considered to have adverse credit if:

• you are currently 90 or more days delinquent on any debt
• Within the past 5 years (of the date of the credit report) you have:
  • Filed bankruptcy
  • Been the subject of a tax lien, wage garnishment, repossession or foreclosure
  • Defaulted on a Federal Student Aid debt (for example, a Direct Loan or Federal Stafford Loan).