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If a parent is denied a Parent PLUS loan because he has a adverse credit history, must the lender send an adverse action notice to that parent?

April 26, 2017Action adverse Credit history Denied Lender loan Notice parent Plus send

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If a parent is denied a Parent PLUS loan because he has a adverse credit history, must the lender send an adverse action notice to that parent?

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If a Parent PLUS borrower’s application is denied, the lender must send notification to the borrower advising him of the denial. The Notice of Adverse Action can be used to comply with this regulation, but is not the only form of notification that a lender may use.