[Lender] Question re Length of Credit Approval Status

[Mc Conahay, Pamela K.]

OK, I've heard from virtually everyone, and the most common length of
credit validity is 180 days.  A few have 120 days, but most are 180.
And, this makes sense----why pay to pull credit more often than you have
to, especially on a loan program where you're insured against default
losses anyway?  
 
I also heard that ED considered trying to regulate this a few years ago.
NCHELP and some other professional organizations for student loan
entities explained some banking regulations to ED (like, the
classification of what type of lender an entity is by their portfolio
distribution drives how often you have to pull credit).  ED decided that
the banking/credit regulators had this under control and there was no
need for ED to regulate this issue.  
 
So, this means that we'll be able to change our policy about how early
in the spring we let a PLUS credit denial "count" for both the current
year and the upcoming aid year. That will make life easier for all of
us.  Thanks again for your input! 
 
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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