For the past seven years, Kat has been helping people make the best financial decisions for their unique situations, whether they're looking for the right insurance policies or trying to pay down debt. Kat has expertise in insurance and student loans.
Kat Tretina Personal Finance WriterFor the past seven years, Kat has been helping people make the best financial decisions for their unique situations, whether they're looking for the right insurance policies or trying to pay down debt. Kat has expertise in insurance and student loans.
Written By Kat Tretina Personal Finance WriterFor the past seven years, Kat has been helping people make the best financial decisions for their unique situations, whether they're looking for the right insurance policies or trying to pay down debt. Kat has expertise in insurance and student loans.
Kat Tretina Personal Finance WriterFor the past seven years, Kat has been helping people make the best financial decisions for their unique situations, whether they're looking for the right insurance policies or trying to pay down debt. Kat has expertise in insurance and student loans.
Personal Finance Writer Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
| Loans & Mortgages Editor
Updated: May 27, 2022, 8:00am
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A parent PLUS loan is a type of federal student loan available to parents who want to help their child pay for college. With a PLUS loan, you can borrow up to the cost of attendance of your child’s school.
However, unlike other kinds of federal loans, PLUS loans require a credit check—which means you might not qualify if you have less-than-stellar credit.
If your application for a parent PLUS loan was denied, here are some steps you can take as well as alternatives to consider.
While the eligibility criteria to qualify for a parent PLUS loan are generally less stringent than those followed by private lenders, it’s still possible to have your application denied in the following situations:
To be eligible for a parent PLUS Loan, you can’t have an adverse credit history. This doesn’t mean that you need to meet a minimum credit score requirement—instead, you can’t have negative details included on your credit report for the past two to five years, depending on the type of information.
Your credit history will be considered adverse by the Department of Education if your credit report contains:
Having even just one of these listed on your credit report will lead to a denial of your PLUS loan application.
Freezing your credit can be a helpful option if you’re concerned about identity theft or other fraudulent activity. However, freezing your credit restricts access to your credit report, which means you won’t be able to open any new credit accounts or take out new loans—including parent PLUS loans.
If there’s a freeze on your credit reports and you apply for a PLUS loan, your application won’t be processed until you lift the freeze.
If your PLUS loan application was denied, here are some options to consider:
If your application for a parent PLUS loan is denied because of an adverse credit history, you could qualify for a loan by adding an endorser to your application. Similar to a co-signer, an endorser is someone with good credit who shares responsibility for the loan.
Keep in mind that if you as the primary borrower fail to make your payments, the endorser will be on the hook. Also note that if you plan on adding an endorser, you’ll need to complete PLUS loan credit counseling.
If you apply for a parent PLUS loan and are denied, consider asking the child’s other parent to apply. The other applicant must be the student’s biological or adoptive parent (or step-parent if they’re married to the custodial parent)—so if you’re divorced or separated, your former partner might still be able to take out a PLUS loan.
Keep in mind that both parents can apply for a parent PLUS loan if they’re divorced and as long as the total aid package doesn’t exceed the student’s cost of attendance. Also note that the following are ineligible for a PLUS loan unless they’ve adopted the student:
In some cases, you can appeal a PLUS loan denial if you provide documentation that shows extenuating circumstances related to your adverse credit history. Keep in mind that this doesn’t apply to loss of employment or illnesses—the extenuating circumstances must be specifically associated with your credit.
For example, you might be able to claim extenuating circumstances in the following situations:
If you have extenuating circumstances and decide to appeal a PLUS loan denial, you can begin the process online at StudentAid.gov.
If you have a credit freeze on your credit reports, you can easily have it removed to allow your PLUS loan application to be processed. To do so, simply visit each of the three credit bureaus online to manage the freeze:
If you still aren’t able to take out a parent PLUS loan, here are a few alternatives that could help your child pay for college:
In addition to parent PLUS loans, your student can consider direct subsidized or unsubsidized loans. Here’s how they work:
Unlike student loans, scholarships and grants don’t have to be repaid—which makes them a great way to pay for school. There’s no limit to how many of these awards your child can get, so it’s a good idea for them to apply for as many as possible. Organizations that commonly provide scholarships and grants include:
Your child might also be eligible for school-based scholarships depending on the information they provide when filling out the Free Application for Federal Student Aid (FAFSA).
After exhausting scholarship, grant and federal student loan options, private student loans could help your child fill any funding gaps left over. However, you’ll typically need good to excellent credit to qualify for a private student loan—so if you have an adverse credit history, you’ll likely have a hard time getting approved for a private parent student loan.
If your child is unable to qualify on their own, they could consider applying with a creditworthy co-signer. Keep in mind that a co-signer can be anyone with good credit who is willing to share responsibility for the loan, such as another relative or trusted adult.
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Personal Finance WriterFor the past seven years, Kat has been helping people make the best financial decisions for their unique situations, whether they're looking for the right insurance policies or trying to pay down debt. Kat has expertise in insurance and student loans, and she holds certifications in student loan and financial education counseling.
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