what is the FICO scores for parent PLUS loans ?

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what is the FICO scores for parent PLUS loans ?

Postby brianF » Tue Mar 23, 2010 9:43 am

my FICO is 560 and my wife is 760. I have incomes but she does not have a job. so when we apply for the parent PLUS loans, what is teh recommended way to do it ? do we apply together ? or separately only in her name ?

your help is very much appreciated. thanks.
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Re: what is the FICO scores for parent PLUS loans ?

Postby ejacobs » Wed Mar 24, 2010 6:26 am

Hello Brian,

I would go ahead and just apply under your own credit. Parent PLUS Loans, while they are based on credit, are much less strict about borrower requirements than private student lenders. Also, the interest rate is fixed by the Department of Education, so applying with a higher credit score won't actually get you a better rate. In this case, the credit check is just a Yes/No question.
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Re: what is the FICO scores for parent PLUS loans ?

Postby brianF » Wed Mar 24, 2010 9:19 am

just checked my FICO, it is a little better - my is 577, my wife 682.

any one applied for parents PLUS loans before ? do they ask to see 2 years tax return , bank statements, pay stubs etc etc just as mortgage companies ?

and when is the repayment period start ? is it right after my kid start college ?

thanks
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Re: what is the FICO scores for parent PLUS loans ?

Postby ejacobs » Wed Mar 24, 2010 2:10 pm

2-4 years is a safe bet on how far they would look back in your credit history.

If you take out a Parent PLUS loan, it does not go into repayment until 6 months after your child either graduates or drops to less than half-time status in school (drops out).
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Re: what is the FICO scores for parent PLUS loans ?

Postby kalalok » Thu Mar 25, 2010 1:22 pm

so-if i understand correctly PLUS loans shouldn't be a worry if credit score isn't great? what is this 'adverse' credit history? are we basically talking bankruptsy? and debt in income ratio isn't playing a huge roll? help? i'm scared and confused!!
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Re: what is the FICO scores for parent PLUS loans ?

Postby ejacobs » Fri Mar 26, 2010 8:47 am

At least a sub-prime credit score should be sufficient for a Parent PLUS loan. Generally 600+

The government takes the score into account, but more looks at your history over the past few years to determine your qualification for a PLUS loan. So basically late payments, delinquencies, and defaults would be red flags.
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Re: what is the FICO scores for parent PLUS loans ?

Postby robbys46 » Mon May 24, 2010 5:04 am

thank you so much for the such helpful info, this forum is very informative.
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