Denied Parent PLUS loan due to medical credit issues - is Sallie Mae through student a viable option?

Yes, my son did exactly this after I was denied for Parent PLUS due to medical bankrupty. Sallie Mae approved him with me as cosigner even though my credit wasn't great. But without a cosigner, the interest rates were REALLY high - like 11-13%. With me as cosigner (even with bad credit), we got it down to about 8.5%. The big downside compared to federal loans is there's way fewer protections - basically no income-based repayment options and limited deferment if she hits hard times. You might want to appeal the PLUS denial first - sometimes they'll approve with "extenuating circumstances" if the only negative marks are related to medical issues.

I strongly recommend appealing the Parent PLUS denial before going to private loans like Sallie Mae. Call Federal Student Aid and explain the medical circumstances that led to the credit issues. Medical-related credit problems often qualify for an exception. If that doesn't work, your daughter becomes eligible for additional unsubsidized federal loans (usually $4,000-$5,000 more per year) when a parent is denied PLUS. Those federal loans have MUCH better terms than Sallie Mae or other private options.

My daughter got sallie mae and I DEEPLY regret it. Interest started acrueing IMMEDIATELY while she was still in school!!! Fed loans don't do that! And the rates keep going up, shes been out of scool for 2 years and already owes like 40% more than she borrowed. Find ANY other option!!!

Financial aid counselor here. When a parent is denied for PLUS, students automatically become eligible for additional unsubsidized federal loans - usually $4,000/year for sophomores. This won't cover the full amount a PLUS loan would, but it's a much better option than private loans for the portion it does cover. For appealing the PLUS denial, you'll need to document that the credit issues were directly related to your husband's medical situation. Call 1-800-433-3243 and ask specifically about a "PLUS loan adverse credit appeal." Having documentation ready showing the timeline of medical issues corresponding to the late payments will strengthen your case. If the appeal fails and you need more than the additional unsubsidized amount, then yes, private loans like Sallie Mae are an option, but as others have mentioned, they lack the protections of federal loans and often have higher rates.

Got denied for PLUS too because of a short sale on our house four years ago. Been calling FSA for WEEKS trying to get through to someone about appealing it and keep getting disconnected or waiting 2+ hours. Finally used this service called Claimyr (claimyr.com) that holds your place in line and calls you back when an agent is available. Got through in 40 minutes instead of endless waiting! Managed to file my appeal and got approved because the short sale was our only negative mark. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ

just remember whatever ur daughter picks now shes stuck with FOREVER. my sister got sallie mae and 15 years later shes STILL paying and owes more than she borrowed originally! its CRIMINAL!!!!

have u looked into scholarships?? my daughter worked at starbucks and they have this college achievement plan thing. lots of big companies have tuition help now bc they cant find workers. worth looking into before more loans!

One more thing to consider - if you're denied the PLUS loan due to adverse credit history, your daughter becomes eligible for the additional unsubsidized loan amount, but you could also find someone else (like a grandparent or other relative with good credit) to endorse your PLUS loan application. This is similar to having a co-signer and could allow you to still get the PLUS loan with the federal protections and generally lower interest rates.

I went through something very similar when my husband had a heart attack and we fell behind on bills. Here's what I learned: definitely start with the PLUS appeal first - medical hardship is one of the strongest grounds for reversal. When you call FSA, have all your medical documentation ready (hospital records, disability paperwork, etc.) and a timeline showing how the medical issues directly caused the late payments. If the appeal fails, your daughter automatically gets about $4,000 more in federal unsubsidized loans, which should cover a good chunk of what you need. Only consider Sallie Mae or other private loans for whatever gap remains after maxing out all federal options. The interest rates and lack of protections on private loans are brutal - my neighbor's son is still paying 12% interest on his Sallie Mae loan from 2018! Also check if your daughter's current employers offer any tuition assistance - even small amounts help reduce how much you need to borrow.