[Lender] Question re Length of Credit Approval Status

[Mc Conahay, Pamela K.]

I need help with something bankers should know, so I'm contacting my
friendly neighborhood bankers for info.  Yes, my brother, my niece, my
other niece and my sister all work for banks or credit unions, but
they're not in the neighborhood nor are they necessarily friendly at all
times.  
 
Every year, we have an issue with parents who get a PLUS credit denial
in May when applying for a summer PLUS loan.   If they get denied, we
offer the student a dependent unsub for summer (assuming they haven't
gotten all of their dependent unsub annual limit prior to summer  They
want us to use that same credit denial as justification to offer the
student a dependent unsub loan for Fall 07-Spring 08, they don't want to
apply again for 07-08 and get another credit hit.  Makes sense to me.  
 
Long ago, we decided that, because a credit approval is usually good for
90 days, we would consider the summer PLUS denial as also valid for the
upcoming fall/spring if the credit decision was issued within 90 days of
the start date of the fall semester.  
 
Now, we're seeing credit approvals that last up to 120 days.  
 
What is the industry standard for being able to approve a new loan
without pulling credit again?  
 
Pam McConahay 
Assoc. Dir., Compliance, Training & Lender Relations 
University of Oklahoma Financial Aid Services 
1000 Asp Avenue, Room 216 Norman OK 73019-4078
(405) 325-4617  Fax (405) 325-7608 
pmcconahay at ou.edu 

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