What happens when Parent PLUS loan gets denied? Other aid options?

my mom got denied 2 for parent plus and yea u get more unsub loans automatically. the financial aid office just did it for me after the denial letter came thru. think i got like $4000 more per semester but still not enough tbh

When a Parent PLUS loan is denied due to adverse credit history, you become eligible for additional unsubsidized loans as an undergraduate student. The amount varies based on your year in school: - First and second-year students: up to $4,000 additional per year - Third year and beyond: up to $5,000 additional per year This happens because you're effectively treated with the same loan limits as an independent student, though you're still considered dependent for other aid purposes. Important: You don't automatically receive these funds - you need to contact your school's financial aid office after the PLUS denial and request the additional unsubsidized loan amount.

Can I ask what other options you're exploring? PLUS loan denials are frustrating because even with the extra unsubsidized loan amounts, there's usually still a gap. Private loans? Scholarships? I'm in a similar situation and feeling totally overwhelmed.

I work in financial aid at a university, and I want to add some important details. When a Parent PLUS loan is denied, you have THREE options: 1) Get an endorser (similar to a cosigner) for the PLUS loan 2) Appeal the credit decision if there are extenuating circumstances or errors 3) Request the additional unsubsidized loan amount Most students choose option #3, but I've seen families successfully appeal credit decisions when the issue was a reporting error. Also, some schools require a specific form to request the additional unsubsidized loan, while others process it automatically. Check with your specific institution about their process.

I've been trying to reach Federal Student Aid for DAYS about our Parent PLUS loan denial - busy signals, disconnects, hour-long holds. Finally used Claimyr.com to get through and spoke to someone in under 20 minutes! They have this cool system that holds your place in line and calls you back when an agent is available. Their video demo (https://youtu.be/TbC8dZQWYNQ) shows exactly how it works. Saved me so much frustration dealing with this PLUS loan issue.

@Worried_student, yes! It definitely works. They basically stay on hold for you until an agent picks up, then connect you. Saved me hours of frustration.

PARENT PLUS IS A TRAP ANYWAY!!! My husband and I got approved for our daughter but the interest is CRIMINAL and there's NO FORGIVENESS OPTIONS like with student loans!!! Maybe getting denied is a blessing in disguise tbh. Those extra unsubsidized loans at least have better terms.

One more thing to consider: With the extra unsubsidized loans following a PLUS denial, your total cost might actually be lower in the long run compared to the Parent PLUS. Current undergraduate direct unsubsidized loan rates are 5.50%, while Parent PLUS is 8.05%. That's a significant difference that adds up over time, especially with the additional fees on PLUS loans (currently around 4.228%).

my sister went thru this last yr. the additional unsubsidized loans helped but she also had to get a private loan to cover the rest. just be careful with those cuz some have variable rates that start low but can go up a lot!!

yeah our aunt cosigned for her. the rate was way better with a cosigner, like 7% instead of 13%

Just wanted to update everyone - my mom's PLUS loan got denied as expected, but I followed everyone's advice and contacted my financial aid office immediately. They were super helpful and processed the additional $4,000 unsubsidized loan within 3 days! The rate difference is definitely noticeable too - 5.50% vs the 8.05% the PLUS would have been. Still have about a $2,000 gap to figure out, but this community really helped me understand the process. Thanks especially to @Harper Thompson and @Jade O'Malley for the detailed explanations!

Wait, I'm confused - are you Charlotte Jones or Natasha Orlova? The post was from Charlotte but this update is from Natasha. Either way, congrats on getting the additional loan processed so quickly! That's a relief. For the $2k gap, definitely check if your school has emergency grants or institutional aid - sometimes they have small pots of money for students in exactly this situation. Also, some schools allow payment plans that spread tuition over the semester, which might help with cash flow even if it doesn't reduce the total amount.

Hey everyone! I'm dealing with a similar situation - my dad's credit took a hit during COVID and we're pretty sure his Parent PLUS application will get denied too. This thread has been SO helpful in understanding what happens next. Quick question though - does anyone know if the timing matters? Like if the denial comes through after the semester starts, can you still get the additional unsubsidized loan amount retroactively? My school's payment deadline is in two weeks but the PLUS application is still processing. Getting nervous about having to drop classes if it doesn't come through in time!

This whole thread has been incredibly helpful! I'm a first-year student and my mom's credit score is around 580 due to some unexpected medical expenses last year, so we're almost certainly going to face a PLUS denial too. Reading everyone's experiences makes me feel less alone in this situation. A few quick questions for those who've been through this: 1) How long does the denial process typically take? My mom applied about 2 weeks ago and we haven't heard anything yet. 2) When you contact the financial aid office about the additional unsubsidized loans, do you need to bring any documentation or is the denial letter enough? 3) Has anyone had success with the endorser option that @Jade O'Malley mentioned? I'm wondering if it's worth exploring even with bad credit. Thanks everyone for sharing your experiences - this community is amazing!

I went through this exact situation last year! My mom's PLUS loan got denied (credit score around 600), and honestly it ended up being a blessing in disguise. Like others mentioned, I automatically became eligible for an additional $4,000 in unsubsidized loans as a sophomore. The process was pretty smooth - I just had to email my financial aid office with a copy of the denial letter, and they processed it within a week. The interest rate difference is huge too - 5.50% vs over 8% for PLUS loans. I still had about a $1,500 gap to cover, but I ended up finding a small institutional grant through my school that I didn't even know existed until I met with a counselor. Definitely schedule a meeting with financial aid ASAP - they often have resources and options they don't advertise widely. You've got this!

I'm going through this exact situation right now too! My mom's credit score is around 620 after some financial difficulties, and we just submitted her PLUS loan application yesterday knowing it'll probably get denied. Reading through all these responses has been SO helpful - I had no idea about the additional unsubsidized loan option or that the interest rates would actually be better! I'm a sophomore so the $4,000 additional would definitely help close the gap. Quick question for everyone who's been through this - should I proactively contact my financial aid office now to give them a heads up, or wait until the official denial comes through? I'm worried about seeming presumptuous, but I also don't want to waste time if there are things I can prepare in advance. Thanks for creating such a supportive space to discuss these stressful financial aid situations!

I'm currently going through this process too and wanted to add something that might help others - if you're worried about the timing between denial and when tuition is due, many schools have what's called "emergency deferment" options. When I explained my situation to the bursar's office (that we were waiting on a likely PLUS denial and the additional unsubsidized loan processing), they were able to defer my payment deadline by 30 days without any penalties. This gave me breathing room to get everything sorted out. Also, donging back to what others said about private loans - if you do need them to fill the gap, definitely shop around and check with local credit unions too. Sometimes they have better student loan rates than the big national lenders, especially if you or your family already have accounts there. The whole process is stressful but reading everyone's experiences here really helps normalize what feels like a disaster but is actually pretty common!