Federal GradPLUS Endorsers
What is an Endorser?
You may have been asked to endorse a Federal GradPLUS Loan for a graduate borrower attending a college or university. We commend your willingness to act as an endorser and further someone's educational opportunities. Prior to applying, you should completely understand the obligations and responsibilities of an endorser.
As an endorser on a Federal GradPLUS Loan, you will be obligated to repay the GradPLUS Loan in the event the borrower is in default or does not repay the loan(s). The endorser has certain rights and responsibilities, and you should review the Endorser Addendum in its entirety before signing it.
What are the Endorser Qualifications, Rights, and Responsibilities?
Please note the following information and requirements of an endorser:
- Endorser must be a creditworthy U.S. citizen, permanent resident or other eligible non-citizen.
- Endorser must sign each new loan request.
- Endorser must advise the lender if there is a change of address, telephone number, e-mail address, or employer information.
- Endorser may request a change in repayment plans, if making the payments, by contacting the lender.
- Endorser’s name will be reported to the credit bureau if the GradPLUS borrower becomes delinquent or defaults,
- Endorsers are not eligible to receive any deferments but may be eligible for a forbearance.
- Endorser acknowledges that the lender may use the same collection methods against them that can be used against the borrower (i.e.) lawsuits, wage garnishment, etc.
- Endorser acknowledges that a credit evaluation will be performed and reviewed by persons and organizations as permitted by law to receive such information.
Again, as an Endorser, you are agreeing to repay only the PLUS Loan if the borrower does not repay the loan.
How can I apply to become an Endorser for a GradPLUS Loan?
The borrower's school can provide you with more information on becoming a GradPLUS endorser.