Do Parent PLUS loans check parent income/credit? Can't qualify with poor credit history

Parent PLUS loans don't actually look at income for qualification, but they DO check credit history. Unlike federal student loans, PLUS loans require a credit check to make sure the parent doesn't have an adverse credit history. If your dad was denied for Care Credit, there's a good chance he might get denied for a PLUS loan too because they look for similar negative credit events.

my mom got denied for plus loan last yr cuz of some old medical bills. ended up having to do a private loan with me as the borrower and my grandpa as cosigner. rates SUCKED tho fyi

If your parent gets denied for a PLUS loan due to adverse credit history, you have a few options: 1. Your parent can appeal the credit decision if they can document extenuating circumstances 2. Your parent can get an endorser (like a cosigner) with good credit 3. Most importantly - if your parent is denied, YOU become eligible for additional unsubsidized federal student loans (usually $4,000-$5,000 more per year) Talk to your financial aid office about the "additional unsubsidized loan eligibility due to PLUS denial" - this is what you want to ask for specifically.

My sister went through this whole thing last year. Her SAI was like 12000 but my parents couldn't afford that at all. When they got denied for PLUS she qualified for extra unsub loans. Still had to work part-time but at least she didn't have to drop out.

I tried calling FSA about this exact issue last month because my mom has bankruptcy on her record. Spent THREE HOURS on hold and got disconnected twice before finally getting through. I ended up using Claimyr (claimyr.com) to get connected to an agent without the wait. They have a video demo showing how it works: https://youtu.be/TbC8dZQWYNQ The agent confirmed that my mom's bankruptcy would likely cause a PLUS denial, but that I could get additional unsubsidized loans as a result. Totally worth not spending all day on hold.

One more important thing: if you do apply for the PLUS loan and your parent gets denied, make sure to follow up immediately with your financial aid office. The additional unsubsidized loan eligibility doesn't happen automatically - you have to request it specifically. Some schools call this a "PLUS Denial Option Form" or something similar.

The whole Parent PLUS system is SO MESSED UP!!! They calculate this SAI number based on parent income but then don't care if parents can actually pay that amount or have good enough credit for loans. If my parents make "too much" on paper but have terrible credit, I'm just supposed to drop out?? FAFSA needs to be completely redesigned because it's punishing students for their parents' financial mistakes!

Just to clarify some misinformation I'm seeing in this thread: The FAFSA and resulting SAI (Student Aid Index) is used to determine eligibility for federal grants and subsidized loans. Parent PLUS loans have a separate application process with different criteria. If your parent is denied for a PLUS loan, you should immediately contact your school's financial aid office about "additional unsubsidized loan eligibility due to PLUS denial." Dependent students whose parents are denied PLUS loans can receive the same higher loan limits that independent students are eligible for.

Just wanted to add that if your dad does get denied for the Parent PLUS loan, don't panic! I went through this exact situation last year. The additional unsubsidized loans you become eligible for can really help bridge that gap. In my case, I was able to get an extra $4,000 in federal loans after my mom's PLUS denial, which covered most of what I needed. Also, some schools have emergency aid funds or payment plans that might help with any remaining balance. Definitely talk to your financial aid counselor about ALL your options - they usually know about resources that aren't widely advertised.