According to the United Negro College Fund, almost 400,000 students across the country have been denied the opportunity to pursue a college education because of tighter credit rules and requirements attached to PLUS loans. In 2011, the Department of Education changed its definition of “adverse credit history” and began to take into account delinquencies that are older than 90 days when determining credit worthiness and eligibility for Parent PLUS loans. If parents had an account in collections or “charge offs” within the 5 years preceding the application, they were denied loans.
The result of this policy change was a flood of denied PLUS loan applications, which has had a disproportionate impact on Historically Black Colleges and Universities (HBCUs). Based on some counts, almost 40,000 students at HBCUs were affected by these denials last year, costing the institutions more than $150 million. Many students were forced to suddenly discontinue their education because they had no way to pay for it.
National Black Law Students Association 