If the lender provides proof of the PLUS loan denial, a dependent student whose parent has been denied one during the current aid year may be eligible to receive Federal Direct Unsubsidized Stafford loans at the independent level.
You have four options on the www.parentplusloan.com if your credit has been rejected. StudentLoans. gov application to choose from:
*Please call 1-800-557-7394 to reach the Department of Education’s Applicant Services for instructions on how to reapply with an endorser or file an appeal. After the parent files an appeal or reapplies with an endorser, the student is no longer eligible for the additional Unsubsidized Stafford loan if the PLUS credit decision is approved.
Get additional Direct Unsubsidized Loans.
In the event that you, as a parent, are not eligible for a PLUS loan, your child might be eligible for additional unsubsidized loan funds.
A dependent student typically has less access to unsubsidized loan funding than an independent student does. However, if the school rejects your application for a parent PLUS loan, it might still be able to provide your child with the higher maximum amount of unsubsidized loans that are only available to independent students. Learn more about direct unsubsidized loans and how they vary from loans that are subsidized.
To learn more about this option, get in touch with the financial aid office at the school.
Talk to the school’s financial aid office about other options.
Your best bet for additional funding may be the financial aid offices at your school.
The best sources of information about remaining state or institutional funds are frequently financial aid offices. They might be able to put you in touch with information about regional or academic scholarships.
Inquire with your financial aid office about your options based on your unique situation, either you or your child. If your financial situation has changed recently, you should absolutely take this action.
FAQ
What happens if my parents are denied a PLUS loan?
However, if the school rejects your application for a parent PLUS loan, it might still be able to provide your child with the higher maximum amount of unsubsidized loans that are only available to independent students. Learn more about direct unsubsidized loans and how they vary from loans that are subsidized.
What is the maximum amount for a parent PLUS loan?
Maximum Loan Amount: Your child’s attendance costs less any other financial aid You can borrow up to $2,000 in PLUS Loans, for instance, if your child’s cost of attendance is $6,000 and they receive $4,000 in other financial aid.
Is it easy to get approved for a parent PLUS loan?
Borrowers must have a dependent child enrolled full-time in an approved school in order to be eligible. Regretfully, unless they formally adopt the student, grandparents and other family members are not eligible to apply for a parent PLUS loan. A PLUS loan can be obtained even with less-than-perfect credit, but you cannot have a bad credit history.
How much parent PLUS loan will be forgiven?
After 25 years of timely payments (for a total of 300 payments), if you continue to make payments on your Parent PLUS Loan, the remaining balance will be forgiven.
Read More :
https://studentaid.gov/articles/plus-loans-denied-adverse-credit/
https://asu.my.salesforce-sites.com/kb/articles/FAQ/My-Parent-Plus-loan-was-denied-am-I-eligible-for-any-additional-loans