Federal Direct PLUS Loan Denial

Federal Direct PLUS Loan Denial Information

A borrower with an adverse credit history may not be approved to receive a Direct PLUS Loan.  If your credit has been denied for the Parent Plus Loan you will be given four options to choose from:


  • I do not wish to persue a PLUS loan at this time
    • If you choose this option, the PLUS loan will not be processed and the student will be awarded with additional funds in an Unsubsidized Loan.
  • I will obtain an endorser *
    • Choose this option of you would like to add a co-signer. Your application will be processed after we recieve notification of the endorser approval.
  • I want to appeal the credit decision *
    • Choose this option if you believe the credit check is inaccurate or you can provide updated information about extenuating circumstances.
  • Undecided
    • If you choose this option, the student will be awarded with additional funds in an Unsubsidized Loan.

* NOTE: If you are obtaining an endorser or appealing your credit decision, your PLUS Loan will be treated as a denial until the school receives certification that your endorsed/appealed loan has been approved. This means that the student may be awarded with additional Unsubsidized Loan until the school is notified of your updated credit decision. Once the school is notified, any additional Unsubsidized Loan awarded due to the original denial will be returned and the PLUS Loan will be awarded in its place.

Denial Option Details


Do Not Wish to Pursue ( Request Additional Unsubsidized Loan) 

If the parent is denied from borrowing through the Federal Direct PLUS Loan program, the dependent student can receive an additional Unsubsidized Federal Direct Loan. The student can be awarded up to the maximums provided for independent undergraduate students (up to $4000 for freshman and sophomores per academic year; up to $5000 for junior and senior students per academic year). If you do not with to recieve the additional Unsubsidized Loan, please contact the Office of Financial Aid. This option is NOT available to Graduate/Professional students applying for the Direct Graduate PLUS Loan.

Apply with an Endorser

An endorser is someone who agrees to repay the Direct PLUS Loan if the borrower becomes delinquent in making payments or defaults on the loan. The endorser must be a credit-worthy individual and may not be the student on whose behalf the PLUS Loan was requested. The endorser will be required to complete an Endorser Addendum with a loan reference number provided to the endorser from the borrower. The borrower will also have to complete Plus Loan Credit Counseling at www.studentloans.gov.

Appeal Credit Decision

A borrower has the option to appeal the credit decision on a Parent PLUS Loan. To begin the appeal process, visit www.studentloans.gov and choose the Appeal Credit Decision option under the Plus Loan Process menu on the left hand side of your home page. Contact the Direct Loan Servicing Center if you have additional questions about the appeal process.

Undecided

If the parent is denied the PLUS Loan and chooses this option, the dependent student will be awarded with additional Unsubsidized Federal Direct Loan. The student can be awarded up to the maximums provided for independent undergraduate students (up to $4000 for freshman and sophomores per academic year; up to $5000 for junior and senior students per academic year). If you do not with to recieve the additional Unsubsidized Loan, please contact the Office of Financial Aid. This option is NOT available to Graduate/Professional students applying for the Direct Graduate PLUS Loan. If you wish to change your decision and add an Endorser or Appeal, you must contact the Direct Loan Servicing Center.