FAFSA options after Parent PLUS loan denial due to poor credit - grandparent seeking alternatives
My grandson was accepted to his dream school (yay!), but my daughter (his mom) just got denied for the Parent PLUS loan because of her credit score. They need about $14,000 beyond what his financial aid package covers for freshman year. I want to help but don't have that kind of money saved up. His dad isn't in the picture. My credit score isn't great either so I don't think I can cosign a private loan. What options does he have now? Can a student with a denied Parent PLUS loan get additional aid? Does he need to file some kind of appeal? The financial aid office just sent a very vague email saying there are "additional options" but didn't explain what those are. Would appreciate any advice from those who've dealt with this!
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StarSeeker
When a Parent PLUS loan is denied due to credit issues, your grandson becomes eligible for additional unsubsidized Direct Loans! This is actually automatic - he can get up to $4,000 more per year in his own name. The financial aid office needs to be notified about the PLUS denial so they can adjust his aid package. Also look into payment plans at the school - many will let you spread payments over 10-12 months instead of paying per semester.
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Anastasia Sokolov
•Thank you! That's really helpful. Do you know if he needs to do anything special to get the additional unsubsidized loans? Will they just add it automatically or does he need to apply for something new?
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Sean O'Donnell
my daughter got denied for parent plus too!! the school gave her an extra $4k in loans right away but it still wasnt enough. we ended up doing a payment plan for the rest. still tight but at least she didnt have to drop out
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Anastasia Sokolov
•That's good to know about the payment plan option. Do you remember how that worked? Was there an application process or interest charges?
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Zara Ahmed
have your grandson talk to the financial aid office ASAP!! when my PLUS loan was denied last year they gave me options but i had to ASK for them specifically. the counselor was super helpful once i actually got someone on the phone but getting through was IMPOSSIBLE. took like 20 calls and i kept getting disconnected after being on hold forever!!! so frustrating
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Luca Esposito
•I had the same issue trying to get through to my grandson's financial aid office! After wasting hours trying to reach them, I found this service called Claimyr (claimyr.com) that holds your place in line and calls you when an actual person picks up. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ. Saved me literally hours of hold time and I finally got someone to explain all our options for additional aid after the PLUS denial.
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Nia Thompson
Your grandson should check if his school has emergency grants or scholarship funds specifically for situations like this. Many schools have discretionary funds they don't advertise widely. Also, has he completed the CSS Profile in addition to FAFSA? Some schools require both for institutional aid consideration. When my PLUS loan was denied, my daughter received: 1. Additional $4,000 in unsubsidized loans (automatically) 2. Work-study position worth $3,500/year 3. Emergency grant of $2,500 (had to apply separately) 4. Payment plan for the remaining balance The financial aid office can be tremendously helpful but usually won't offer everything unless specifically asked. Have your grandson schedule an in-person meeting and be prepared to discuss all options.
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Anastasia Sokolov
•Thank you for such detailed suggestions! He only filled out the FAFSA, not the CSS Profile. I'll have him look into that right away. And I didn't realize there might be emergency grants available - that would be incredibly helpful.
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Mateo Rodriguez
just wanna say don't let him take private loans if possible!!!! the interest rates are INSANE and they don't have the same forgiveness options as federal loans. my nephew is drowning in private loan debt because his parents couldn't get the PLUS loan either and he didn't know about the additional unsubsidized loan option.
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Anastasia Sokolov
•That's really good advice - I'll make sure he avoids private loans. I've heard horror stories about those interest rates too.
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GalaxyGuardian
my sons financial aid officer told me that after a plus loan denial they can consider the student for independent status on a case by case basis which could mean a lot more aid but only if theres like real documented financial hardship not just bad credit. worth asking about maybe?
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StarSeeker
•That's actually not quite accurate. A PLUS denial alone doesn't make a student eligible for independent status - that's determined by very specific criteria like being married, having children, being a veteran, etc. What does happen is that the student becomes eligible for the higher loan limits usually reserved for independent students, but their dependency status for other aid calculations doesn't change. It's a common misconception but an important distinction.
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Anastasia Sokolov
Thanks everyone for all the great suggestions. I spoke with my grandson and he's going to: 1) Contact financial aid about the additional unsubsidized loans, 2) Ask about emergency grants, 3) Look into the payment plan option, and 4) See if he can pick up an on-campus job. I'm feeling much more hopeful now that we have some concrete options!
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Nia Thompson
•One more tip: have him specifically ask about a "professional judgment review" or "special circumstances appeal" - especially if your daughter's financial situation has changed since the tax year reported on FAFSA. That can sometimes result in additional institutional aid.
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Dylan Cooper
So glad to see you have a plan! Just wanted to add that when he talks to financial aid, he should ask specifically about "additional unsubsidized loan eligibility due to PLUS denial" - using those exact words helps ensure they process it quickly. Also, many schools have hidden work-study spots that open up throughout the year, not just at the beginning. My daughter found a great library position in October that wasn't posted anywhere - she just walked in and asked if they needed help. Best of luck to your grandson!
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NebulaNomad
•Thank you for that specific wording tip! I'll make sure my grandson uses those exact words when he calls - that sounds like it could really help speed up the process. And I love the idea about just walking into places on campus to ask about work opportunities. Sometimes the direct approach works better than waiting for job postings. I really appreciate everyone's help in this thread - it's amazing how much useful information you all have shared!
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Madeline Blaze
Another option to consider is contacting your grandson's school's student success center or dean of students office - they often have emergency funds or know about scholarships that aren't widely advertised. Also, if your daughter's credit denial was recent, she might want to consider getting an endorser (someone with better credit) to co-sign the PLUS loan rather than taking it off the table completely. The endorser doesn't have to be family - it could be a trusted friend or family member with good credit. This would give access to the full PLUS amount needed rather than trying to piece together the gap with multiple smaller options. Just make sure everyone understands the endorser would be fully responsible for the loan if payments aren't made.
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Carmen Diaz
•That's a really good point about the endorser option! I hadn't thought about asking a friend or other family member. My sister might have good enough credit to help as an endorser. Do you know if there are any specific requirements for who can be an endorser? Like do they need to meet certain income thresholds or just have good credit? And is the process to add an endorser complicated? This could potentially solve the whole funding gap if we can find someone willing to help.
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