FAFSA changes causing unexpected Parent PLUS loan rejection - any way to appeal?

I work in a financial aid office and can help clarify some things. The new FAFSA formula absolutely can result in a higher SAI even with slightly lower income - it weighs assets differently and changes how family size affects calculations. But you do have options: 1. Your parents' PLUS loan denial automatically makes you eligible for additional unsubsidized loans (usually $4,000-$5,000 more per year depending on your year in school). 2. You can appeal your financial aid based on special circumstances. The fact that your parents were approved previously but denied this year could qualify as a change in circumstances. 3. For the Parent PLUS denial specifically, your parents can either get an endorser (like a cosigner) or document extenuating circumstances for the adverse credit history. Schedule an appointment with your financial aid counselor ASAP. Bring documentation of your parents' previous PLUS loan approvals and their current financial situation.

the whole system is RIGGED against poor students!!! my family makes less than yours ($38k) and my SAI went up by over $2000 this year with the new FAFSA!!!! its complete BS and the govt knows exactly what theyre doing. they WANT us to drop out so we can work minimum wage jobs forever. the financial aid ppl at my school dont even try to help, just say "thats the formula" and send us away.

I had the exact same Parent PLUS denial issue last semester and managed to resolve it. For the adverse credit history problem, medical collections under $2,500 can actually be documented as extenuating circumstances. Your parents need to complete the PLUS Loan Adverse Credit Appeal at studentaid.gov (look under the Loans section). For your increased SAI with decreased income - that's definitely happening to a lot of people with the new FAFSA. The formula now considers things differently: - Different protection allowances for family size - Changed asset protection allowances - Different treatment of small businesses and family farms - New calculations for families with multiple college students Definitely file a special circumstances appeal with your school's financial aid office. Bring tax documents showing the income decrease, documentation of any unusual expenses (like those medical bills), and be VERY specific about the gap amount you need filled. The appeals are reviewed case-by-case.

Try calling Federal Student Aid directly about this. I was in a similar situation and spent WEEKS trying to get through to someone on their regular number with no luck - always disconnected or 3+ hour wait times. Finally found Claimyr (claimyr.com) which got me through to an actual FSA agent in about 20 minutes. They have this video showing how it works: https://youtu.be/TbC8dZQWYNQ The FSA agent was able to document my parents' extenuating circumstances for their PLUS denial right over the phone and got it approved for appeal. Saved me a ton of time and confusion compared to trying to figure it out through my school's financial aid office, who honestly didn't seem to know the proper procedure.

i cant believe no1 is talking about the bigger issue here!!! the whole FAFSA system is DESIGNED to screw over low income students. my cousin tried for 2 yrs to get her parents plus loan approved and ended up with $27,000 in private loans at 11% interest!!! meanwhile my roommate's parents make over $100k and got approved no problem. the credit check system for plus loans is literally discriminating against poor families who are more likely to have credit problems BECAUSE they're poor!!!

This happened to my daughter last year, and I had to become an endorser on her PLUS loan. Problem is I'm her stepmom not her biological mom, so we had to jump through extra hoops. Make sure whoever does the endorser option is actually listed as a parent on the FAFSA. And if you're using the adverse credit appeal, they are VERY specific about what documentation they accept. We tried submitting a payment plan for collections but it was rejected because it didn't have an official letterhead. Had to get a completely new document from the collections agency.

not to go off topic but has anyone noticed that the site crashes CONSTANTLY now when trying to submit these appeal forms?? i tried 6 times to submit my parent's PLUS loan reconsideration and kept getting errors until i tried at like 3am. its like they make it difficult on purpose lol

Since I haven't seen it mentioned yet - one option is to consider a dependency override. However, these are VERY difficult to get and are only approved in extreme circumstances like documented abandonment, abuse, or incarceration of parents. Simply having parents who can't contribute financially is not enough for an override. Your better option is to pursue the additional unsubsidized loan eligibility that automatically comes with a Parent PLUS denial. As a junior, you should be eligible for an additional $5,000 in unsubsidized loans. Combined with your base subsidized/unsubsidized eligibility (typically $7,500 for juniors), that gives you $12,500 total federal loans for the year, which should cover your $11,200 gap. To access this additional unsubsidized amount, your financial aid office needs documentation of the PLUS denial. They should have received it automatically, but sometimes you need to follow up.

UPDATE: I wanted to thank everyone for the advice! I've made progress on several fronts: 1. I confirmed with financial aid that I'm eligible for the additional $5,000 in unsubsidized loans due to the PLUS denial 2. My parents are gathering documentation for their adverse credit appeal based on the medical collections 3. I tried calling FSA directly for 3 days with no luck, then used Claimyr and got through in about 15 minutes! The agent explained exactly what documentation we need for the appeal and gave me a case number to reference 4. I've submitted a special circumstances appeal to my financial aid office regarding our SAI calculation Between the additional unsubsidized loan and possibly getting the PLUS loan approved on appeal, I think I'll be able to stay enrolled. Thanks again to everyone who helped!

That's such a relief to hear you're making progress! Your situation really highlights how confusing and frustrating the new FAFSA changes have been for so many students. I'm dealing with something similar - my family's SAI also went up despite lower income, and it's been a nightmare trying to understand why. One thing I learned from my financial aid counselor is that even if your parents' PLUS loan appeal gets approved, it might take a few weeks to process, so definitely pursue that additional unsubsidized loan option as your backup. Also, when you're gathering documentation for the special circumstances appeal, include anything that shows unusual expenses or changes in your family's financial situation - even small things can sometimes make a difference. Thanks for sharing your update and all the specific steps you took. Posts like this are so helpful for those of us navigating the same mess. Hope everything works out for you this semester!

I'm so glad to see you're making progress! Your situation really shows how broken the new FAFSA system is for students like us. I'm a senior dealing with similar issues - my family's SAI jumped $1,800 even though we had lower income AND higher medical expenses this year. It's honestly insane. A few things that helped me that might be useful for others reading this: 1. When you do your special circumstances appeal, be very specific about dollar amounts. Don't just say "medical expenses" - say exactly how much and include copies of bills/statements. 2. If your parents' PLUS appeal gets denied again, ask about getting an endorser. Sometimes a relative with better credit can help bridge the gap. 3. Keep checking your student aid report online - sometimes updates happen faster there than through your school's system. The fact that you had to use a third-party service just to talk to FSA is ridiculous, but I'm glad it worked. The whole system feels designed to make us give up, but posts like yours showing that persistence pays off are really encouraging. Hope your appeals come through quickly!

This thread has been incredibly helpful! I'm a sophomore facing a similar situation - my family's SAI went up by $1,200 even though our income stayed basically the same, and now we're scrambling to figure out how to cover the gap. I had no idea about the additional unsubsidized loan eligibility that comes with a Parent PLUS denial - that's something my financial aid office never mentioned when they just told me my parents were denied. I'm definitely going to ask them about this first thing Monday morning. Also really appreciate the tip about Claimyr for getting through to FSA. I've been trying to call them for weeks about a different issue with no luck. The fact that we have to use a third-party service just to access basic information about our own financial aid is pretty ridiculous, but if it works, it works. One question for anyone who's been through the special circumstances appeal process - how long does it typically take to hear back? I'm worried about missing payment deadlines while waiting for a decision.

Just wanted to jump in as someone who went through this exact situation last year! The new FAFSA formula has definitely caused chaos for a lot of families - you're absolutely not alone in seeing your SAI increase despite lower income. It's incredibly frustrating and counterintuitive. A few things that might help based on my experience: 1. When you meet with your financial aid counselor, bring printed copies of your previous year's FAFSA and aid award letter to show the comparison. Visual documentation sometimes helps them understand the impact better. 2. For the medical collections issue with your parents' PLUS loan - definitely pursue the adverse credit appeal, but also ask about getting an endorser as a backup plan. Sometimes that's faster than waiting for the appeal decision. 3. If your school has an ombudsman or student advocate office, they can sometimes help navigate the financial aid bureaucracy when you're hitting walls with the regular financial aid staff. The additional unsubsidized loan eligibility from the PLUS denial should definitely help bridge most of that gap, and the fact that you're already working shows your commitment. Don't let anyone make you feel like the system isn't broken - it absolutely is, especially for students from lower-income families. Keep fighting for what you need!

As someone new to this community, I just want to say how incredibly helpful this entire thread has been! I'm facing almost the exact same situation - my family's SAI went up despite our income dropping, and we're dealing with a Parent PLUS loan denial due to medical collections from an emergency surgery last year. Reading through everyone's experiences and advice has given me a roadmap for what I need to do. I had no idea about the additional unsubsidized loan eligibility that comes automatically with a PLUS denial - my financial aid office literally just said "your parents were denied" and left me to figure out what that meant. Now I know I need to follow up with them about accessing those additional funds. The tip about using Claimyr to get through to FSA is gold - I've been trying their main number for over a week with no success. It's honestly ridiculous that we need a third-party service just to talk to the people managing our financial aid, but I'm willing to try anything at this point. Paolo, I'm so glad you found solutions and were able to stay enrolled! Your persistence really paid off, and sharing your journey helps the rest of us know that fighting through the bureaucracy is worth it. This whole new FAFSA system feels like it's working against students from lower-income families, but seeing success stories like yours gives me hope. Thanks to everyone who shared their knowledge and experiences - this community is a lifeline for students trying to navigate this broken system!

As someone completely new to navigating financial aid appeals, this thread has been incredibly eye-opening! I'm currently dealing with a similar situation where my family's SAI increased despite our income staying roughly the same, and I had no idea there were so many options available for addressing these issues. The information about additional unsubsidized loan eligibility after a Parent PLUS denial is something I wish was more widely publicized - it seems like financial aid offices aren't always proactive about explaining these automatic benefits. I'm also really grateful for the practical tips about documentation requirements and the Claimyr service for reaching FSA, since their regular phone lines seem impossible to get through. Paolo, congratulations on making progress with your appeals! Your detailed updates about each step you took are incredibly helpful for those of us just starting this process. It's encouraging to see that persistence and knowing the right questions to ask can lead to real solutions. One thing that strikes me about this entire discussion is how much students have to become experts in financial aid policy just to access the education funding we're entitled to. The fact that we're all sharing tips and strategies in online communities because the official systems don't provide clear guidance really highlights how broken the current process is. But I'm grateful for communities like this where we can support each other through these challenges!

As someone who just joined this community and is dealing with almost identical issues, I can't express how valuable this entire thread has been! Like so many others here, my family's SAI went up significantly this year despite our income actually decreasing, and we're now facing a Parent PLUS loan denial due to medical collections from my mom's cancer treatment last year. What really strikes me is how we're all discovering the same thing - that crucial information about our options (like the additional unsubsidized loan eligibility after PLUS denial) isn't being clearly communicated by either schools or FSA. I had no idea this automatic additional funding existed until reading this thread, even though it could completely solve my funding gap. Paolo, your persistence and detailed documentation of each step is inspiring! The fact that you had to use a third-party service just to reach FSA shows how broken the system is, but I'm so glad it worked for you. I'm definitely going to try Claimyr since I've had zero luck getting through their regular lines. The advice about being specific with dollar amounts in appeals and keeping detailed records of every conversation is gold. It's frustrating that we have to become financial aid experts just to access our education, but at least we have communities like this to help each other navigate the bureaucracy. Thanks to everyone who's shared their knowledge and experiences - you're literally helping students stay in school when the official systems are failing us!

As someone completely new to this community and facing a very similar situation, I can't thank everyone enough for sharing their experiences and advice! I'm a sophomore whose family's SAI jumped by over $1,500 this year despite our income staying virtually the same, and my parents just got denied for their Parent PLUS loan due to an old medical collections account. Reading through this thread has been like finding a roadmap when I felt completely lost. I had absolutely no idea that a PLUS denial automatically makes you eligible for additional unsubsidized loans - my financial aid office literally just sent me a letter saying "your parents were denied" with no explanation of what options that opened up. Now I know exactly what to ask them about on Monday! The tip about Claimyr is incredibly helpful since I've been trying to reach FSA for weeks with no success. It's honestly ridiculous that we need a third-party service just to talk to the people managing our financial aid, but I'm willing to try anything at this point. Paolo (Esposito), your success story gives me so much hope! Seeing how you systematically worked through each option - the additional unsubsidized loans, the adverse credit appeal, the special circumstances appeal - shows that persistence really can pay off even when the system feels designed to make us give up. What really frustrates me is how we're all discovering these crucial options through online forums rather than clear guidance from FSA or our schools. But I'm grateful for communities like this where we can help each other navigate what feels like an intentionally confusing system. Thanks to everyone who took the time to share their knowledge - you're literally helping students stay in school!

As a newcomer to this community who's been following this incredibly helpful thread, I wanted to share my own experience and add some perspective! I'm currently a junior dealing with almost the exact same situation - my family's SAI increased by $900 this year despite our income dropping by about $3,000, and we're now scrambling to figure out how to cover an unexpected gap. What's been most eye-opening to me is discovering how many crucial options exist that aren't clearly communicated by financial aid offices or FSA. I had no idea that PLUS loan denials automatically trigger additional unsubsidized loan eligibility until reading this thread. That information should be front and center in any denial notification, not something students have to discover through online forums! Paolo, your systematic approach to tackling each option gives me a clear roadmap to follow. I'm definitely going to try the Claimyr service since I've had zero luck getting through FSA's regular phone lines. It's honestly absurd that we need third-party services just to access basic information about our own financial aid, but if it works, it works. The point about being specific with dollar amounts in appeals resonates with me too. I was being way too vague in my initial draft, but now I understand I need to document every expense and gap with exact figures. Thanks to everyone who's shared their knowledge and experiences here. It's communities like this that help students actually navigate the system when official channels fail us. The new FAFSA changes have clearly created chaos for low-income families, but seeing so many people find solutions through persistence gives me hope that I can figure this out too!