September 8 , 2006
Volume 2006– Issue 38

UHEAA Accepts Endorsers for PLUS Loan Borrowers with Adverse Credit

To help borrowers who may not be able to qualify for a Federal PLUS Loan on their own because of adverse credit, effective immediately, UHEAA will accept endorsers on PLUS loans. PLUS loan endorsers can be used for both parent PLUS borrowers and graduate/professional student PLUS borrowers only in the event the borrower does not meet the federal credit requirements.

Dependent undergraduate students whose parents are denied PLUS loans still have the option of applying for additional unsubsidized Stafford loan funds. However, graduate students seeking PLUS loans are not eligible for additional unsubsidized Stafford funds beyond the current statutory limits if they are denied a PLUS loan due to adverse credit. Their only recourse to obtain PLUS funds in such cases is through the use of a creditworthy endorser.

To obtain a PLUS loan using an endorser, an addendum to the PLUS application and promissory note must be completed. School financial aid administrators may use this link http://www.uheaa.org/pdfs/plusendorser.pdf to print copies of the Endorser Addendum to the Federal PLUS Loan Application and Master Promissory Note and related materials for the PLUS loan endorser. Please bookmark this link for future use.

Please note that a new endorser addendum is required for each new PLUS loan. The endorser addendum is not valid for serial loan usage. Just as a new credit approval is required each time a PLUS loan is requested, a new endorser addendum is required each time this option is used.

Any questions related to this Bulletin should be directed to UHEAA Policy and Training at 801.321.7166 or by e-mail to mjohnson@utahsbr.edu.

 

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