Not sure if my parents will be accepted for the PARENT PLUS loan

leeseliss · 06-28-2012, 05:12 PM

My parents have horrible credit and I'm really scared I won't get the parent plus loan. Is there any other way I could still get a loan somewhere if my parents are denied this loan?

swimcatsmom · 06-28-2012, 05:19 PM

If your parents are turned down for the PLUS loan, you will be eligible for an additional $4000 in unsubsidized direct student loans. That would bring your maximum eligibility as a freshman up to $9,500. This will increase a little each year.

You won't be able to get a private loan without a cosigner with good credit. That is a good thing in the long run as with the maximum direct loans plus the additional $4,000, you are already incurring a higher level of debt than is advisable.

writestuff54 · 06-28-2012, 06:04 PM

Reasons for not qualifying include bankruptcies, foreclosures, and judgements. As of October 2011, they also look at charge-offs and collection accounts. Your parents may have a poor credit score due to late-pays, but if they don't have these other things, they may still qualify. if they have charge-offs or collections that they went back and eventually paid, you have the opportunity to appeal a denial and provide proof of payment.

It hurts nothing to go ahead and try to get the PLUS, because you can't get the extra student loan ($4,000 first year) without that denial.

momofthreeboys · 06-28-2012, 06:45 PM

This is all presuming that if they are declined that you only need $4000 more for this year. If they are turned down and you need more than $4000 more dollars then you need a Plan B.

leeseliss · 06-30-2012, 01:10 AM

Thank you writestuff54, my mom was telling me about that and how we still might have a chance even though her credit is really bad... thanks, I'll still be on the search for loans if all else fails.

mom2collegekids · 06-30-2012, 07:12 AM

If your parents get turned down for Plus, it's doubtful that they would qualify for any other loans. And since you'd need them to co-sign your loans, that wouldn't work either.

Plus loans are more lenient for qualifying.

guitars101 · 07-01-2012, 12:51 AM

hoping all works out for you leeseliss! I know it can be stressful. best of luck to you

leeseliss · 07-01-2012, 12:24 PM

Thank you guitars101!