Can I get a Parent PLUS loan with bad credit but high income for FAFSA?

with parent plus loans they ONLY look at adverse credit history, not credit score. so unless you have delinquent accounts, bankruptcy, foreclosure, etc in the past 5 years, you should be fine to get approved. your income won't matter for approval.

Parent PLUS loans are a bit different from traditional loans. They do check for adverse credit history, not your credit score. Specifically, they look for: - Accounts with a total outstanding balance greater than $2,085 that are delinquent 90+ days - Default determinations - Bankruptcy discharge (last 5 years) - Foreclosure, repossession, tax lien, wage garnishment (last 5 years) - Write-off of federal student debt (last 5 years) If you're denied, your daughter automatically becomes eligible for additional unsubsidized Direct loans ($4,000-$5,000 per year depending on year in school). But those won't cover full costs at most schools. Regarding credit repair - yes, it's possible. Focus on bringing any delinquent accounts current, paying down credit card balances, and disputing any inaccuracies on your report. You have about 10-12 months, which can make a significant difference.

my mother had BAD credit and still got approved for my plus loans but my sister got denied. i think it depends on how recent the bad stuff is. they definitely do care about bankruptcies and foreclosures.

Something important nobody mentioned yet: if you get denied for a Parent PLUS loan, you can appeal with an endorser (basically a co-signer) OR you can document extenuating circumstances for your credit issues. The divorce financial impact might qualify as extenuating circumstances if you can document it. Also, have you looked into whether your rental property equity could be accessed through a HELOC? Might be a backup option with better rates than private student loans if the PLUS loan doesn't work out.

Just wanna add something - don't forget that you might be able to get your child declared independent for FAFSA purposes! I had a friend whose parents made too much money but weren't helping them, and they got approved for independent status which meant way more financial aid! Maybe look into that too??

I've been trying to reach FSA for days about my son's PLUS loan denial and the phone wait is ridiculous! Finally used Claimyr (claimyr.com) and got a callback in 20 minutes instead of waiting on hold for hours. They have this video showing how it works: https://youtu.be/TbC8dZQWYNQ The FSA agent walked me through the endorser process, and I was able to get my brother to be my endorser. Now we're approved! Might help if you end up needing to go the endorser route.

We were in a similar situation last year with my son. I was denied the Parent PLUS loan due to a tax lien from 2019. What most people don't realize is that private student loans often have better interest rates anyway, especially with your income level. Have you checked options like SoFi or College Ave? We ended up with a 5.3% fixed rate, which was better than the federal rate at the time.

You should talk to the financial aid offices at the specific schools your daughter is interested in. Many private colleges have institutional scholarships that aren't based on FAFSA need calculations. My son got a $25k/year merit scholarship even though we didn't qualify for any federal aid. Also, some schools will work with you if there are special circumstances the FAFSA doesn't capture, like your divorce impact and high cost of living area.

btw credit repair is totally possible in a year!! i fixed mine after bankruptcy by getting a secured card and having someone add me as an authorized user on their old card. my score went up like 130 points in 10 months.

One important thing to understand is that your 401k contributions are still counted in your income for FAFSA purposes. With your income level, your SAI (Student Aid Index, formerly EFC) will likely be high enough that need-based aid isn't available at most schools. However, beyond the Parent PLUS loan question, make sure your daughter is applying to schools with strong merit scholarships. Many schools offer significant merit aid that's completely separate from FAFSA need calculations. Schools in lower cost-of-living areas tend to have more generous merit aid packages.

also dont forget to check out CSS profile schools if your kid has good grades cuz they might give merit money even with high income!!