Grandparent co-signing FAFSA Parent PLUS loan during retirement - approval chances?

I dont think grandparents can cosign Parent PLUS loans at all!! Only biological/adoptive parents or stepparents can be borrowers for Parent PLUS. Your grandma might be able to cosign a private student loan tho.

The previous poster is correct. For federal Parent PLUS loans, only parents (biological, adoptive, or stepparents in some cases) can be the borrower - not grandparents. Your grandmother cannot apply for a Parent PLUS loan on your behalf regardless of her financial situation or willingness to help. Your options include: 1. Your parents could still apply for the Parent PLUS loan even with bad credit. If denied due to adverse credit history, YOU would become eligible for additional unsubsidized federal direct loans. 2. Your grandmother could co-sign a private student loan for you instead. In that case, lenders will examine her credit score, debt-to-income ratio, and overall financial stability. Fixed retirement income isn't automatically disqualifying, but it will factor into the debt-to-income calculations. 3. You could apply for private loans with your grandmother as co-signer, but shop around as different lenders have different criteria for retiree co-signers.

my uncle tried to cosign my cousins PLUS loan last year and got rejected immediately. the financial aid office said exactly what others mentioned - PLUS loans are PARENT plus loans, not any-random-relative plus loans. lol

I went through something similar last year! When my mom got denied for the Parent PLUS loan due to her bankruptcy, I automatically qualified for increased Direct Unsubsidized loan amounts. It wasn't enough to cover everything, so my grandmother ended up co-signing a private loan with Sallie Mae to cover the remaining costs. For her application, they were less concerned about her being retired and more focused on her credit score (which was excellent) and her debt-to-income ratio. Her consistent retirement income actually worked in our favor since it was stable and predictable. Make sure your grandmother understands that co-signing means she's legally responsible for the loan if you can't pay. I set up automatic payments to protect both of us.

Something important to consider: if your parents apply for Parent PLUS and get denied, you'll qualify for additional unsubsidized federal loans in your name. The increased amount depends on your year in school: - First and second year: additional $4,000/year - Third year and beyond: additional $5,000/year This is often overlooked but can be very helpful. The benefit of this approach is that you get more federal loans (with their protections and repayment options) rather than private loans. If that's still not enough, then yes, private loans with your grandmother as co-signer would be the next step. Each lender has different criteria for evaluating retired co-signers. Some will look favorably on consistent retirement income, while others might be more stringent.

FYI - I tried calling the Federal Student Aid helpline about a similar situation and was on hold FOREVER trying to get answers about Parent PLUS eligibility. I finally found this service called Claimyr (claimyr.com) that got me connected to an actual FSA agent in about 10 minutes. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ The agent confirmed that only parents/stepparents can take out PLUS loans, but explained all the options when parents get denied. Saved me hours of frustration!

When my dad got denied for credit issues on the Parent PLUS, my financial aid office automatically processed the additional unsubsidized loan amount for me. It was super easy, no extra application needed. Just make sure your parents actually complete the PLUS application and get the formal denial - that's what triggers your eligibility for the extra loan amounts.

Oh and don't forget to check if your school has an installment payment plan! Mine let me spread out the remaining balance (after scholarships and loans) over 4 payments each semester. That might help reduce how much you need to borrow overall.

Just wanted to add one more thing that might help - if your grandmother does end up co-signing a private loan, make sure to compare rates from multiple lenders. I've seen cases where retirees actually get better rates with credit unions than big banks, especially if your grandmother has been a long-time member somewhere. Also, some lenders offer rate discounts for setting up autopay, which could save you money over the life of the loan. But definitely try the Parent PLUS denial route first to get those extra federal loans - that's your best bet for getting the most favorable terms!