Program Integrity Draft Language Drops
Career College Central summary:
The Department of Education has released draft proposals ahead of a negotiated rulemaking session on program integrity and improvement. That language includes the definition of “adverse credit” for Direct PLUS Loan eligibility.
Proposed regulations would change the amount of time borrowers’ negative credit information on their credit report is considered from five years to two years for debts in collection or charged off.
A borrower would then have an adverse credit history if debt is 90 days or more delinquent, in collections, charged off or totals an outstanding balance of $2,085.
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