An adverse credit history is a record of poor repayment history on one or more loans or credit cards.

For purposes of qualifying for a Direct PLUS Loan, you’re considered to have an adverse credit history if…

• you have one or more debts with a total combined outstanding balance greater than $2,085 that are 90 or more days delinquent as of the date of the credit report, or that have been placed in collection or charged off (written off) during the two years preceding the date of the credit report; or
• during the five years preceding the date of the credit report, you’ve been subject to a
  • default determination
  • discharge of debts in bankruptcy
  • foreclosure or repossession
  • tax lien
  • wage garnishment
  • write-off of federal student aid debt

The standard applies to both parent and graduate or professional student Direct PLUS Loan applicants.