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A credit history is a summary of your financial strength, including your history of paying bills and your ability to repay future loans. To qualify for a PLUS loan, you cannot have an adverse credit history. Your credit history may be considered adverse if you are experiencing any of the following credit conditions:
Bankruptcy discharge within the past five years.
Voluntary surrender of personal property to avoid repossession within the last five years.
Repossession of collateral within the last five years.
Foreclosure proceedings started.
Foreclosure within the last five years.
Conveying your real property that is subject to a mortgage (by deed) to your lender to avoid foreclosure (deed in lieu of foreclosure).
Accounts currently 90 days or more delinquent.
Unpaid collection accounts.
Charge-offs/write-offs of federal student loans.
Wage garnishment within the last five years.
Defaulting on a loan, even if the claim has been paid.
Lease or contract terminated by default.
County/state/federal tax lien within the past five years.

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