Adverse Credit History - what exactly does this mean re: Direct Plus Loan for college?

Question

I am filling out an application to borrow money for my son's college expenses, and curious how bad the credit score has to be to be considered "adverse", or is it events such as bankrupcy that determines if my history is "adverse."

Answer 1

'Adverse' is not a state of credit history.

Any time a creditor reports any derogatory status (i.e., a late payment) they have taken an 'adverse action.' This can be as simple as a 30 day late payment or as severe as a judgment, 'advers' itself does not imply the severity of the derogatory, it only refers to the type of reporting done by a creditor.