What happens if denied for parent plus loan

Vemo and Edmit join forces to help st Alicia Hahn. Begin Your Research on Education and Featured Stories. Filter By Categories cost-of-college financial-aid-and-scholarships student-loans salary-and-career. Provide Documentation of Extenuating Circumstances Also at the end of the online application for PLUS Loans, you have the option of documenting extenuating circumstances pertaining to an adverse credit history.

A few examples of qualifying extenuating circumstances are: Debt that was included in a Chapter 13 bankruptcy not a Chapter 7, 11, or 12 bankruptcy ; Divorce decree that absolves a divorcee of responsibility for repaying a debt; Consolidation of a defaulted federal student loan the consolidated loan cannot be delinquent ; and Derogatory events, such as a bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or default determination, that occurred more than five years ago.

Consider Other Alternatives Scholarships, grants, and work-study positions are alternative forms of financial aid worth pursuing fully, as these types of student assistance do not need to be paid back.

Allie Grace Garnett. Allie Grace Garnett is a professional researcher and freelance writer with a background in finance and entrepreneurship. Garnett served as the Vice President of Marketing and Strategic Partnerships for the start-up Rentricity, and additionally founded a nonprofit organization YAVA that encourages volunteerism among college students.

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Here's why you might be denied a parent PLUS loan, as well as what you can do to still help finance your child's education. You'll be ineligible for a parent PLUS loan if you have adverse credit history on your credit report. Adverse credit history is a negative mark on your credit report, such as a tax lien or debt payment that's more than 90 days late. You may also be denied if you or your child doesn't meet other parent PLUS loan eligibility requirements.

For example, your child must be an eligible undergraduate student and you must be a U. If your parent PLUS loan denial was due to extenuating circumstances or incorrect information on your credit report, you can appeal the decision by providing a written statement and documentation to the Department of Education.

The documentation you'll include will depend on your situation. For example, if a foreclosure is listed on your credit, you'd need to show the mortgage is paid in full, a short sale has been completed or provide other proof you no longer owe the debt. Events that may have led to credit issues, such as losing a job, typically do not qualify as extenuating circumstances.

After filing an appeal, the decision is left to the Department of Education. If your appeal is unsuccessful or you have bad credit, you can still get a parent PLUS loan by adding an endorser to your application. The child benefitting from the parent PLUS loan cannot be your endorser.

Some community colleges have intentionally opted out of the Direct Loan program to preserve eligibility for the Federal Pell Grant. If a college has too high a cohort default rate, it can lose eligibility for all federal student aid, not just student loans. You cannot have an adverse credit history , though there are some exceptions for extenuating circumstances.

You and your child must be U. I am a… High school student College student Graduate managing my own student loan debt Parent of a student Other.

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