Denied Parent PLUS Loan -- Deadline for tuition is Tuesday Sept. 15th

Paying for College
1

Hello,

My parents applied for, and were denied, the Parent PLUS Loan for $14,000. As I understand it, I should now be eligible to take out an additional $5000 of Federal direct loans (on top of the $7500 I’ve already taken out for Fall 2015 as a Rising Junior), but I don’t see an option anywhere on studenloans.gov to request an additional $5000, nor do I see a change in my aid award from my school. My deadline to pay my tuition is Tuesday Sept. 15th, and the Fin Aid office is closed over the weekend.

Am I screwed? (I’ve already sent them an email detailing my situation, but I’m not sure what’s going to happen).

2

Did you JUST find this out? We were asking you last June if your parents would qualify for the Plus Loan. Why did they wait until now to apply?

If your parents (which parents? dad?), had qualified for that Plus Loan, who would paid it back? You?

You have a 7500 loan, plus 14,000…that’s 21,500 for junior year.

Is there a UC or CSU that you can commute to?

You’re trying to cover SCU’s cost minus your merit award.

I don’t see how you’re going to cover the balance owed.

3

Even if you get $5000 more, you’ll still be $9000 short, right? You’ll have to go talk to FA on Monday. You might be able to set up a monthly payment plan, but can you afford $1000/mo? Go ask the FA office what to do.

4

If your parents can’t/won’t pay that $1000 a month, do NOT start at this school…otherwise you’re quickly going to have a debt and then you won’t be able to transfer elsewhere with an outstanding debt.

I know that you REALLY wanted to go to SCU, but the funding just isn’t there.

You can TAG to UCDavis…and during this TAG year, you can change your custodial parent to your dad. THEN you might qualify for decent aid from UC Davis.

5
  1. you cannot get an additional 5k if your parents are denied a PLUS loan. You can get an additional 4k
  2. Even with the additional 4k, you are still 10k short

as others have stated this is not a financially feasible option for you. do not register for class. if you are registered, drop. you don’t want to be billed for this outstanding money or you are going to have some serious problems.

6

How did you pay for freshman and sophomore years?

7

Looks like you realized back in April that you didn’t know how you would pay for school:

How much of the gap can your summer job earnings cover?

8

I hope that there are some current high school seniors reading this thread.

We see this sort of thing every year. During the app season, students will indicate that they don’t know how costs will be covered but they think that their “determination” will somehow make money appear…“where there’s a will, there’s a way” or “I’m applying to scholarships like crazy”…or in this case…“I’d give a kidney…”.

Then, in late summer/early fall. when the tuition bill is due, things suddenly get very real. Parents don’t have the money, can’t/won’t borrow the money, and then we see threads like this one.

The saddest cases are when the student stubbornly enrolls anyway (still praying to the tuition fairy), and then faces an unpaid balance that puts their future on hold. No one can pay the balance, and the student can’t enroll elsewhere until that balance is paid.

In this student’s case, the Plus denial is actually a blessing. He was trying to borrow too much. From his other posts it sounds like his lower income father was denied (higher income mom isn’t supportive), so likely the student would have been responsible for paying back the Staffords and the Plus. For a psych major, with hopes of grad school, borrowing $40k for undergrad is just too much.

9

Well, I need to clear some things up.

First, I’m not a student at USF. Second, I previously was going to matriculate to SCU, BUT, since the cost of SCU was quite high, even with a nice grant, I ended up choosing UCI (even though I didn’t really like it at first).

Second, I am a community college transfer – that’s how I paid my first two years.

Third, yes, I just found out this information now. I was a visiting undergraduate at Stanford over the summer and so I didn’t talk to my parents about the loan options because I was very busy with my summer quarter work and research assistantship. My parents were denied the Plus Loan Spet. 11th, Friday.

Fourth, I made a horrible assumption, that after submitting my intent to register at UCI that my parents would take the liberty of at least figuring out how the financial aid system works while I was away over the summer … well that didn’t happen.

Ok, now that this is all cleared up – I don’t think at UCI is an irresponsible waste of money. I actually think it’s a fairly responsible decision, and given my desire to go to grad school, I feel like I need to have some degree of prestige, and that I need to have RA experience with a distinguished faculty member throughout my two years – which I’ve already arranged via email with a few professors at UCI, and I’ve secured a position at the Stanford Psychophysiology Lab, which will allow me to work remotely over the school year, and back in person again during the summer.

But above all else, UCI’s cognitive neuroscience program is quite strong, and I am realizing very quickly that the difference between the text-books and lectures I’ll get there vs. the local San Jose State (which is an hour commute from where I live btw) is vast. For example, I’ve purchased by textbooks for Fall and was surprised to see that the author was the head of the lab I’m RA’ing in – and, that the book covers substantially more information than any of my lower division courses ever did at Community College, which, btw, were taught by faculty of the local CSU’s regularly. Most of whom don’t know their shit, use outdated textbooks, and do not practice research – I can’t sell myself short like that. Not to mention, the student body at the local CSU’s is completely ridiculous; I don’t want to be surrounded by these types of students. I want to surround myself with people are more invested in their work, more passionate about their work, and frankly, with people who are better students.

Now, there is one last thing to clear up. My parents aren’t exactly low-income, our EFC is $34,000 per year. It is a bankruptcy, home foreclosure and unpaid taxes that caused a denial of the PLUS loan. The problem is that my parents have no savings because they buy expensive things (new car, expensive motorcycle, largish house, expensive barbecue etc). Technically, we can afford the tuition, especially between both of my parents – they would just prefer if I took out the debt and helped me pay it off later. So, that’s that.

10

ok…we need more info…

Are you currently using your mom as your CP? You have said that her income is too high, she’s not supportive, and so you were going to live with dad to establish him as CP for 2016-17.

Is your dad’s income low enough to qualify for aid at a UC? If so, then you need to delay your enrollment by a year, so then that you can use his info and get some aid.

It doesn’t matter that you think that UCI is a “good investment.” You don’t have the money or the access to the money for that “investment.”

11

This may be no help bc it was sooooo long ago. When I was in law school one year my private loans were denied. I was able to clear up the issue, but it took a long time. In the meantime, FA office had me app,y again in a different lender program and it went through. Does anyone know if it is stil. possible a different lender may approve the p,us loan?

12

Changing CP’s means just to physically be at the other parents house more than 50% of the year?

If it is for this year, it may be too late. If it is “the last year” as in, the last year as of the FAFSA, that gives you a little more time. Does the OP have to change all his addresses of record?

Have you thought about trying to get a job based on your two years of CC and go to college part-time?

Also, I don’t see the work study in that equation - did you get Federal work study?

(and finally, if mom could pay but doesn’t want to pay outright, any way you could get her to lend you the money, maybe based on a summer job to start paying it off sooner rather than later?)

Good luck. (and honestly, I didn’t think the Parent Plus loans had income maximums - then again, I thought Perkins loans did have income maximums and we’d be way above that)

PS - my son is a freshman, and I thought each year you can take out more Federal loans. He has $8500 per year which is subsidized, unsubsidized, plus Perkins. Did the OP get a Perkins loan?

13

The main issue, or so I’m told, is that the tuition would drain the rainy day account. The quarterly payments at full price would be doable, but then all the extra cash from the monthly paycheck would all be going into retirement and very little would make it into savings, or that’s my impression, but I don’t really know the details of the finances since no one will show me the details. In any case, I see my parents buying stuff on online all the time. We get freaking boxes delivered to our home twice a week with new shoes and fancy clothing, or new fruniture or whatever.

It seriously makes me feel like shit when my parents spend all their cash on themselves without caring about my education, knowing full well about the cost of tuition. And it’s not just me, my two brothers will be screwed after high-school as well if nothing changes.

14

Ok. So, my Mom is my CP. I can’t dispute this fact for the Fall 2015 school year. She is willing to spend $10,000 per year after an unbelievably difficult back and forth discussion for at least three weeks.

My dad has back-taxes and is afraid of the IRS, hence didn’t want to become CP a year ago when I proposed that option to him. We started the process of filling out the fafsa online and when it got to address and social security number he backed out and canceled it all.

My mom wouldn’t apply for the PLUS loan for Fall 2015, so I got my dad to apply, with my mom under the assumption he would get denied (she was right) and with the assumption that those who are denied the plus loan get an additional $5000 in loans to bring the loan amount up from $7500 to $12500 without a cosigner. I fully disclosed this information to my dad and he was OKAY with doing that. I would never try to take advantage.

My dad agreed to help pay $3000 per year. And so, with $12,500 plus $10,000 plus $3000 = $25,500 (with my housing); this amount will cover the tuition, fees, housing, food and books. I have waived health insurance and I won’t have a car – just a decent 10-speed bicycle.

But if I can’t get the extra $5000 I don’t know if this will work.

Finally, I’ve priced out what monthly payments will look like after graduation. Across 10 years I feel as though my payments will be manageable, and that I will be able to afford modest housing while I begin to pay off debt. I will not be buying a house or a new car anytime soon after graduating, that’s for sure, but this doesn’t bother me much. And if I stay single with no kids then the cost of the loans shouldn’t be a big burden.

Also, if I make it into the fully funded PhD programs I’d like to, I can use a little of my stipend to begin making payments, plus my time in my PhD will count towards non-profit loan forgiveness and I plan on continuing to work in the non-profit sector for the rest of my life and so I believe that I will qualify for loan forgiveness on all the federal direct loans I take out.

15

ok…so you won’t be able to change CP’s since your dad won’t file FAFSA because of back taxes, etc.


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The main issue, or so I'm told, is that the tuition would drain the rainy day account. The quarterly payments at full price would be doable,

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How would that be doable? Wouldn’t those payments be in addition to the $10k your mom has promised?


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but then all the extra cash from the monthly paycheck would all be going into retirement and very little would make it into savings, or that's my impression, but I don't really know the details of the finances since no one will show me the details. In any case, I see my parents buying stuff on online all the time. We get freaking boxes delivered to our home twice a week with new shoes and fancy clothing, or new fruniture or whatever.

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It’s your parents’ money. They earn it, they have a right to spend it as they see fit.

You keep using the words “parents”…do you mean your mom and step-dad? Does your step-dad earn more than your mom?


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It seriously makes me feel like **** when my parents spend all their cash on themselves without caring about my education, knowing full well about the cost of tuition. And it's not just me, my two brothers will be screwed after high-school as well if nothing changes.

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Well, if this is a blended family, then your mom may not have much choice in the matter. If a good bit of the income is your step-dad’s then he may not want to be paying for your college.

Your mom has agreed to pay $10k per year.


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My dad agreed to help pay $3000 per year

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I wouldn’t count on that. Someone who owes “back taxes” doesn’t likely have an extra $3k per year to give for tuition. Likely, your dad has financial issues.

Is there a UC or CSU you could commute to? It seems like room and board is the short-fall.

16

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Finally, I’ve priced out what monthly payments will look like after graduation. Across 10 years I feel as though my payments will be manageable, and that I will be able to afford modest housing while I begin to pay off debt. I will not be buying a house or a new car anytime soon after graduating, that’s for sure, but this doesn’t bother me much. And if I stay single with no kids then the cost of the loans shouldn’t be a big burden.


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Did you figure how much the loans will GROW while you’re in your PhD program? Did you “start the repayment clock” after PhD? That would make you about 25/26 when you get your PhD. Are you saying that you plan on “staying single” until you’re 35-36? I don’t think that’s a reasonable plan.

17

You have to tell the school financial aid office you want to borrow the full amount at the independent rate now that you parent was denied Plus loan. You are correct you can borrow 12,500 (the 4k mentioned above is freshmen). I am not familiar with the loan management site so if you can’t increase the borrowing there just email the financial aid office asap.

I hope they can process it in time at this late date or at least will not make you come up with the funds first. You personally have to keep on top of your own aid paperwork no matter if you are busy as no one else is doing it, you can blame the parents all you want when you are sitting a year out of school, heh?

18

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How would that be doable? Wouldn’t those payments be in addition to the $10k your mom has promised?


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No, the $10,000 is for the quarterly payments. The federal loans ($2500 + $1666), plus $3300 from mom and $1000 from dad for quarter one, two and three.

Total: $12500 loans for the year, $1000 from mom for the year, $3000 for dad for the year.

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Did you figure how much the loans will GROW while you’re in your PhD program? Did you “start the repayment clock” after PhD? That would make you about 25/26 when you get your PhD. Are you saying that you plan on “staying single” until you’re 35-36? I don’t think that’s a reasonable plan.


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Well, I hope to at least cover the interest. I don’t know about relationship status, but yes that was the general idea.

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I wouldn’t count on that. Someone who owes “back taxes” doesn’t likely have an extra $3k per year to give for tuition. Likely, your dad has financial issues.


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This might be true, but I hope it isn’t.

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Is there a UC or CSU you could commute to? It seems like room and board is the short-fall.


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You’re right. Room and board is a problem. The closest school I can commute to is San Jose State, which is an hour away. I live in Gilroy, so there aren’t any UC’s to commute too, except maybe UC Santa Cruz – which rejected me this year.

UC Berkeley is far, and I have no chance of being admitted, nor would I want to be a student there. Stanford is almost as close as San Jose State, but they have a 1% transfer rate and I applied and was rejected for Fall admission, but accepted to the Summer Session, which I attended. And, our EFC is $34,000, so that’s the price Stanford would expect us pay – no better than UCI.

I was accepted to Santa Clara University and UC Irvine so those were my options. Santa Clara gave me a big grant, but the cost of tuition with the grant was equivalent to the cost of tuition and room and board at UCI so I figured it would be better for me to get out of the house and move to southern California. I also figured that the cost of room and board can be adjusted by moving, while tuition is fixed, so I thought that having the room and board be a little flexible would help with cost over Santa Clara.

My parents are divorced. My step-dad only makes a little bit of money as a telephone pole repair man. My mom makes big money as a corporate execuative. Neither of my biological parents, nor my step-dad, have any college degrees. They don’t understand higher education, don’t support higher education and don’t understand why I would even want higher education (although my biological dad seems to support the idea of college).

My mom tries to keep finances secret from my step-dad and doesn’t tell him how money is being spent, or what money is being spent on. She takes his check and cashes it into her account rolls-eyes.

My biological dad lives in a condo in San Jose, but won’t file the fafsa. I am unsure of his financial situation, but I think it’s improving because I believe he is going to get remarried soon to someone who makes a good amount of money.

I am not interested in working my way up a corporate ladder. I want to learn the curriculum provided by a University. I don’t want to be a business person. I want to conduct academic research and take bio and neuroscience classes and so forth.

19

As a dependent junior the Max he can borrow is 11.5 k ( 7500 + 4000 because he was denied a plus loan). If mom is paying 10 and dad is paying 3 you are now at 24.5. How much more will you need. At least you can cover this quarter. If you expect to finish you may ha e no choice but to go to school with in a commutable distance while working

20

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My step-dad only makes a little bit of money as a telephone pole repair man. My mom makes big money as a corporate execuative.


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Are you guessing about that or do you know that? Utility pole repair men often make pretty good money.


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And, our EFC is $34,000, so that's the price Stanford would expect us pay -- no better than UCI.

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Do you have a sibling or step-sibling in college? If your mom makes “big money” and your step-dad also works, I would think EFC would be higher.

Stanford doesn’t use FAFSA to determine “family contribution”. Stanford gives super-aid, which is about 10% of family income. But, that’s neither here nor there since you didn’t get in.

Your aid is divided by quarters…so cost is about $10k per quarter.

you have $11.500 in loans, so less than $4k in loans for this quarter.

your mom will pay about $3300 this quarter, correct?

you’re hoping that your dad will pay $1000 for this quarter? Have you asked him for his check?

Where is the rest?

Are you working while in college?