I have apparently been turned down for a GradPLUS due to my credit report showing a prior Perkins loan that has just been paid off, but will be on the credit report for a few more years (7 to be exact) before being erased.

Is it likely that I will keep getting rejected for the same loan in the next few years because of this situation? It seems to me that if the reportshows the account as being rehabilitated it should no longer be an obstacle.

hi in my experience, you got denied for the grad plus because the Perkins loan issue was recent...and yes it will stay there for 7 years...but over time your credit will improve...and if you don't have any more delinquent accounts then you should be able to get a grad plus loan in the future year or two. If the perkins issue was cleared up 2 years ago...you probably would have been approved for this loan. Also, you can add a cosigner for the grad plus loan...which you can consolidate with your stafford loans when you are done with school...therefore letting the cosigner off the hook. Hope that helps.

What about federal loans? Will having a lot of federal loan debt affect getting a grad plus loan?

Nope, as long as your Federal loans are current and up to date.