What Can Parents Do If They Have Been Denied A PLUS Loan?

Flickr user bugeater

The PLUS Loan for Parents is a federal loan program that allows parents to borrow money to fund their child’s college education. One of the main criteria in determining the parent’s eligibility for PLUS is their credit history. While the requirements for PLUS are not as rigorous as most other types of loans, in order to get approval, the borrower will need to meet a few basic requirements. If they don’t, they may be denied a Parent PLUS loan.

Here are a few things you can do if you have been denied a Parent PLUS loan:

Appeal

File an appeal. Explain that your bad credit history was due to mitigating circumstances that were beyond your control at the time.

Find a Cosigner

Ask a family member or friend to cosign your loan. Unless you have a history of financial irresponsibility, most family members or friends will oblige. This should help you get the funds you need despite the PLUS rejection.

Offer Collateral

Consider offering other assets as collateral – Ideally, you should not use your home equity or retirement funds to fund your child’s college education. But if you are denied a PLUS loan, have exhausted all scholarship, grant, work-study, and other federal loan opportunities, and are in desperate need of additional funds, these assets could come in really handy. It is advisable to get professional advice and understand the implications should you decide to do this.

Use College Raptor’s new Student Loan Finder to discover personalized loan options. Compare lenders and interest rates to find the ideal student loan for you!

 

Lender	Rates (APR)	Eligibility
	5.34%-15.96%* Variable 3.99%-15.61%* Fixed	Undergraduate and Graduate	VISIT CITIZENS
	4.92% - 15.08% Variable 3.99% - 15.49% Fixed	Undergraduate and Graduate	VISIT SALLIE MAE
	4.50% - 17.99% Variable 3.49% - 17.99% Fixed	Undergraduate and Graduate	VISIT CREDIBLE
	6.00% - 13.75% Variable 3.99% - 13.75% Fixed	Undergraduate and Graduate	VISIT LENDKEY
	5.50% - 14.56% Variable 3.69% - 14.41% Fixed	Undergraduate and Graduate	VISIT ASCENT
	3.70% - 8.75% Fixed	Undergraduate and Graduate	VISIT ISL
	4.99% - 16.85% Variable 3.47% - 16.49% Fixed	Undergraduate and Graduate	VISIT EARNEST
	5.00% - 14.22% Variable 3.69% - 14.22% Fixed	Undergraduate and Graduate	VISIT ELFI

College Raptor is not a loan lender and does not assume responsibility for suggesting a loan to a user who may not be eligible for it. Rates, terms, conditions, eligibility, approval, and other considerations are the decisions of the lenders and may vary depending on which lender or marketplace the user selects. We urge users to carefully consider and review all loan options and terms before committing to taking out a loan.