Department Outlines the Impact Institutions will Face Due to Changes to PLUS

The Department of Education posted the first in a series of announcements providing operational information about changes to the Direct PLUS Loan adverse credit history provisions contained in the October 23, 2014 final regulations. [See October 29, 2014 Washington Update for background on the PLUS changes.]

The announcement provided explanations on the operational updates institutions will have to consider prior to the changes being implemented on March 29, 2015. These include:

• Modification to an institution’s website and materials on PLUS Loans to reflect the new requirements, particularly the Department’s new counseling requirements.
    
• Modification to internal processes and procedures to ensure that any required special PLUS Loan counseling has been completed prior to making the Direct PLUS Loan disbursement, and that the school’s system can receive the new credit check and counseling information from the Department.

This announcement also provided information on the credit checks, the Department’s PLUS Loan counseling system, and links to the October final regulations and a technical information resource.

The Department announced that it will host a webinar on February 17, 2015, from 1:00-2:00P.M. EDT, to provide additional information and clarification on the changes.

In the coming weeks, the Department will provide more detailed information about PLUS Loan updates to the financial aid delivery system (the Common Origination and Disbursement system).

For more information, please contact:
Maureen Budetti