New York State Higher Education Services Corporation (HESC) announces changes to PLUS Credit Check processing and the borrower e-MPN process.

PLUS Credit Check Processing Update

Currently, HESC performs credit checks on behalf of a lender if the school and lender participate in the PLUS Credit Check process.

Beginning January 2, 2008, HESC will enhance this service by performing credit checks in both HESC’s and the lender’s names. The lender listed on the Master Promissory Note (MPN) will have the ability to view the actual credit report and use the report to perform a second look, which will prevent a second pull for credit against the borrower. Lenders must be members of Equifax and have a subscriber number with Equifax.

Procedures
To view the credit report on HESC.org:
      • Visit Lenders and go to Transaction Processing Center
      • Click on Transaction Processing and enter user ID and password
      • Go to Borrower Tasks, click on View Credit Check Report or click on View Credit Check Information and select View Report link in the Credit Check Information section.

Lenders who determine that credit should be approved can send a Guarantee Only (GO) transaction to HESC or an email to loanproc@hesc.org to have HESC reprocess the loan to guarantee.

New Second Look Question Added to e-MPN Process

HESC is adding a question to the borrower e-MPN process asking the borrower if he or she wants the lender to automatically perform a second look for credit eligibility. This question will appear only if the lender wishes to automatically perform second looks for all borrowers who are denied credit.

Standard Reports
The lender second look response will be displayed on the HESC Performed Credit Checks Daily Credit Results Reports APP718, APP719 and the HESC Performed Credit Checks Credit Requested Results Report APP723.

CommonLine Application Response File
HESC will indicate the response to the lender second look question along with the response to the unsubsidized question in the Guarantor use only field. The new literal will be displayed as “CR DENY SU Y 2ND LOOK Y” (credit was denied, the student requested an unsubsidized Stafford loan and the borrower wants a second look at his credit report). An “N” will be displayed, replacing the “Y,” if the unsubsidized Stafford question or the second look question is answered with "No."

Questions or Comments

Direct questions or comments regarding the use of HESC electronic products or services to Priority Services at priorityservices@hesc.org. Contact the HESC Help Desk with any technical problems with HESC’s electronic services. To contact HESC toll free, call 1-866-431-HESC (1-866-431-4372) and follow the menu prompts.