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

What if your Parent PLUS Loan was denied?

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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:


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

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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.

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Lender Rates (APR) Eligibility
Sallie Mae logo.
2.62% - 12.97% Variable
3.75% - 13.72% Fixed
Undergraduate and Graduate
Credibe company logo.
1.29% - 12.99% Variable
3.15% - 14.75% Fixed
Undergraduate and Graduate
Lendkey company logo.
Undergraduate and Graduate
Ascent company logo.
1.75% - 10.54% Variable
3.22% - 13.09% Fixed
Undergraduate and Graduate
College Ave company logo.
1.29% - 12.99% Variable
3.22% - 13.95% Fixed
Undergraduate and Graduate
1.66% - 6.21% Variable
2.94% - 7.15% Fixed
Undergraduate and Graduate
Earnest company logo.
2.09% - 11.69% Variable
3.47% - 13.03% Fixed
Undergraduate and Graduate
1.86% - 11.52% Variable
3.20% - 11.99% Fixed
Undergraduate and Graduate
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.

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