Plus loan question

<p>Hi, if I apply and receive a Plus Loan for my D, (will need all 4 yrs)will I be able to take out Plus loans in 2 years if my S needs them?</p>

<p>Since we don’t know your current debt and how much you’ll be borrowing each year, we can’t answer that.</p>

<p>you’ll have to qualify each year for this child…and then qualify each year for the next child. </p>

<p>Each year that you borrow, your credit score will be negatively affected…so a lot depends on you and how much you’d be borrowing each year. </p>

<p>There was a mom who posted last year, that after borrowing for her child’s first 2 years, she was denied for her D’s junior year. So, it does happen. </p>

<p>This is from the Parent Plus website…</p>

<p>A Parent’s Credit Report and PLUS Loans
The PLUS Loan can be provided to you, the parent, as a non-need based loan specifically because it is a credit-based loan, similar to a personal line of credit. As such, it’s vital to know exactly where your credit stands.</p>

<p>How is credit judged?
Credit scores are numerical indexes based on an algorithm developed by Fair Isaac Company, called a FICO® score. Scores are negatively impacted by events such as late payment, incomplete or partial payments, defaults, and judgments or liens, and range from 300 to 850. The actual algorithm is a trade secret of Fair Isaac, but the following breakdown approximates the weighted values that compose your score.</p>

<p>•35% Payment history
•30% Outstanding debt
•15% Length of your credit history
•10% Recent inquiries on your credit report
•10% Types of credit in use
The “average” credit score for “good” credit is 675 or better for most major lenders, such as mortgage lenders. Scores lower than 625 demand scrutiny, while scores lower than 600 will often be denied outright. For in depth articles and research on student credit, please visit the Student Credit Card Center.</p>