Can anyone explain PLUS loan endorsers when parents have bad credit?

Yes, an endorser for a Parent PLUS loan is essentially a co-signer who agrees to repay the loan if you can't. The endorser doesn't have to be the student's parent, but they do need to pass the credit check. Your sister could potentially be an endorser if she has good credit and is willing to take on that responsibility. Keep in mind that she would be legally obligated to repay the entire loan if you default, so it's a big ask. Alternatively, if you're denied for the PLUS loan due to adverse credit history, your daughter may automatically become eligible for additional unsubsidized federal student loans in her own name, which might be worth exploring.

we went thru this last yr with my son. got denied for parent plus and then he got offered like $4000 more in unsibsidized loans. it wasnt enough tho so we had to find an endorser for the plus loan anyway. my brother did it for us. the whole thing is a NIGHTMARE and takes forever!! start the process EARLY

To answer your questions about endorsers: 1. There's no specific income requirement for endorsers, but they do need to pass the credit check, which looks at adverse credit history rather than income. 2. For the additional unsubsidized loans, if you're denied a Parent PLUS loan, your daughter's school will be notified, and the financial aid office should automatically process the additional unsubsidized loan eligibility. The amount is typically up to $4,000-$5,000 depending on her year in school. 3. The endorser process requires the endorser to complete an Endorser Addendum online and undergo a credit check through StudentAid.gov. They'll need an FSA ID and will have to provide financial information. 4. Important note: If you use an endorser, both you (the parent borrower) and your endorser will need to complete PLUS credit counseling on StudentAid.gov. If you're struggling to reach the financial aid office, I'd recommend checking their online resources or trying to schedule a virtual appointment rather than waiting for an email response.

didn't u fill out the FAFSA? I thought they got rid of the EFC and now use SAI or something?

Just wanted to add something important that often gets overlooked - if you do get denied for the Parent PLUS loan and decide to pursue getting an endorser, both you AND the endorser will need to complete entrance counseling on StudentAid.gov. It's not difficult, but it takes about 30 minutes to complete and is required before the loan can be disbursed. Also, the endorser's liability is limited to the specific loan they endorse. So if you need Parent PLUS loans for multiple years, you'd need your sister to complete the endorser process each year (or find different endorsers). Lastly, make sure to check if your daughter's school offers any additional institutional aid for students who were denied Parent PLUS loans. Some schools have emergency funds or supplemental scholarships for these situations that aren't widely advertised.

Is nobody going to address the fact that the financial aid system is COMPLETELY BROKEN??!! They expect parents to take out massive loans regardless of their financial situation, and then act surprised when people can't afford college. My daughter's SAI was ridiculous too even though we're barely keeping up with bills. The whole system is designed to force families into debt. Honestly, look into community college for 2 years and then transfer - that's what we ended up doing after the PLUS loan nightmare.

Update: We spoke to a financial aid counselor today (finally!) and she explained that we have two options after being denied for the PLUS loan: 1) Find an endorser, or 2) Document extenuating circumstances for our adverse credit history. We're going to try option 2 first since our credit issues were due to medical expenses. Apparently you can submit documentation showing that the adverse credit was due to circumstances beyond your control. If that doesn't work, we'll go the endorser route. Thank you everyone for your advice!

Just a personal experience to add - my parents were in a similar situation (bad credit, denied PLUS loan). My uncle ended up being my endorser for all four years. The process gets a bit easier after the first year because you're all familiar with it. The main challenge is that the endorser has to be willing to do this every year, not just once. Each year is considered a new loan with a new credit check and endorser process. Keep that in mind when making plans!

One more option to consider - if your daughter is denied the additional federal loans she needs, she might qualify for private student loans with a cosigner who has good credit. Sometimes the interest rates can be competitive with federal loans, especially if the cosigner has excellent credit. Just be aware that private loans don't offer the same repayment flexibility and forgiveness options as federal loans do. Still, it's worth exploring all your options if the federal route doesn't provide enough funding.

As someone who just went through this process last year, I wanted to share a few additional tips that might help. First, if you do go the extenuating circumstances route for medical bills, make sure to include any correspondence with insurance companies and documentation showing you attempted payment plans. The Department of Education looks favorably on situations where you tried to resolve the debt responsibly. Also, something I wish I had known earlier - if your daughter's school participates in it, look into the Federal Work-Study program if she hasn't already. It won't cover a huge amount, but every bit helps, and the income from work-study jobs doesn't count against her for next year's financial aid calculations. One last thing - don't forget to check if your state has any need-based grant programs that might still be available. Some states have rolling deadlines or emergency funds specifically for families in situations like yours. Your daughter's financial aid office should have information about state programs, but you can also check your state's higher education website directly. Wishing you the best of luck with the appeals process!

Just wanted to add another perspective as someone who works in higher education financial aid (though not giving official advice here!). The extenuating circumstances appeal for medical debt is definitely worth pursuing first - medical expenses are one of the most commonly approved reasons for PLUS loan appeals. Make sure to include a detailed timeline of events, copies of all medical bills, insurance explanations of benefits, and any payment arrangements you attempted. One thing that often gets missed: if you're approved through extenuating circumstances, you won't need to complete the PLUS credit counseling that's required when using an endorser. This can save you some time and hassle. Also, regarding the 2-week email response time from your financial aid office - try calling first thing in the morning when they open, or see if they have virtual drop-in hours. Many offices prioritize urgent situations like yours where deposit deadlines are approaching. Good luck with the appeals process! The fact that your credit issues were medical-related puts you in a much better position for approval than general financial mismanagement.

I just wanted to chime in with some encouragement - we went through almost the exact same situation two years ago with my daughter. Parents with medical debt, denied for PLUS loans, the whole nine yards. The extenuating circumstances appeal for medical expenses worked for us! It took about 3 weeks to get approval, but we were able to get the PLUS loan without needing an endorser. One tip that really helped us: when you write your appeal letter, be very specific about how the medical situation was truly beyond your control (emergency surgery, unexpected diagnosis, etc.) and emphasize any steps you took to be financially responsible during that time. We also included a brief statement about our current financial stability to show we could handle the loan payments going forward. The whole process is stressful, but there's definitely light at the end of the tunnel. Your daughter is lucky to have parents who are working so hard to make her college dreams possible!

I'm in a very similar situation and this thread has been incredibly helpful! My son is starting college in the fall and we also got hit with medical bills that destroyed our credit. Reading about the extenuating circumstances appeal gives me so much hope - I had no idea this was even an option. One question for those who went through the medical debt appeal process: did you need to provide documentation showing that you've since resolved or are actively paying down the medical debt? We're still making payments on some of our bills and I'm wondering if that would hurt or help our case. Also, did anyone have success appealing when the medical situation happened more than 2-3 years ago? Thank you all for sharing your experiences - this community has been a lifesaver during such a stressful time!

This entire thread has been so helpful - thank you everyone for sharing your experiences! I'm dealing with a similar situation with my daughter's college funding. We're in that terrible middle ground where we make too much for significant need-based aid but nowhere near enough to actually afford what the SAI says we should pay. For anyone still navigating this process, I wanted to add that some schools also have professional judgment reviews where they can adjust your financial aid package based on special circumstances like medical expenses or job loss. It's worth asking your financial aid office about this option too, especially if the extenuating circumstances appeal for the PLUS loan doesn't work out. Also, don't forget to check if your employer offers any education benefits or tuition assistance programs - some companies have partnerships with colleges or offer reimbursement for employee dependents that aren't widely advertised. The whole system is frustrating, but seeing so many families successfully work through similar challenges gives me hope. Wishing everyone the best with their appeals and college funding journeys!

I'm new to this community but going through the exact same situation right now! Reading through all these experiences has been incredibly eye-opening. My daughter just got her aid package and we're facing a huge gap that we can't cover, plus we have credit issues from some financial struggles a couple years back. I had never heard of the extenuating circumstances appeal option before finding this thread - that sounds like it could be perfect for our situation since our credit problems were also due to unexpected medical expenses. Can anyone who went through this process share approximately how long the documentation gathering took? I want to make sure I give myself enough time to put together a strong appeal package. Also, for those who mentioned that some schools have emergency funds or additional aid for families denied PLUS loans - is this something I should ask about directly, or do schools typically offer this information automatically? I don't want to miss out on any opportunities just because I didn't know to ask! Thank you all for creating such a supportive and informative discussion. It's amazing how much more helpful this community has been than trying to navigate the official channels alone.

Just wanted to add my experience to this incredibly helpful thread! We went through the PLUS loan denial and endorser process last year for my son. One thing I learned that might help others - if you do end up needing an endorser, make sure to have a backup plan because the credit check for endorsers can sometimes reveal issues that weren't apparent beforehand. My brother initially agreed to be our endorser but ended up not passing the credit check due to some old collection accounts he didn't even know about. We eventually found success with my mother-in-law as the endorser, but the whole process took about 6 weeks from start to finish, which was way longer than we expected. The school was understanding about the delayed loan processing, but it definitely added stress to an already overwhelming situation. For anyone considering the endorser route - make sure your potential endorser checks their credit report first through annualcreditreport.com before agreeing to help. It can save everyone time and disappointment if there are unknown issues that would prevent approval. The credit counseling requirement for both borrower and endorser was also more time-consuming than expected, so factor that into your timeline as well.