I found this on the USC website for summer aid:
Please Note: Federal Direct Loans are available on a limited basis for summer study. The following students may have some limited eligibility:
-Students who have not already borrowed their full 2016-17 academic year loan eligibility.
-Students who will graduate at the end of the summer 2017 or fall 2017 semesters.
-Students who will advance from freshman to sophomore status at the end of the spring 2017 semester.
-Students who will advance from sophomore to junior status at the end of the spring 2017 semester.
Federal Direct Parent PLUS Loan
For parents of undergraduate students.
Submit a completed online Summer Loan Request Form to the Financial Aid Office and apply for a Parent PLUS loan at studentloans.gov.
Judging from the info online, I assume summer is part of the 2016-17 award year. I also see that parents can apply for a Parent PLUS loans in the summer. I don’t understand why your Parent PLUS loan was denied, to be honest. If summer is part of the 2016-17 award year, your dependency status for the 2017-18 award year is not relevant.
The only thing that might be coming into play is this: “Students who will graduate at the end of the summer 2017 or fall 2017 semesters.” It’s possible that USC uses the 2017-18 award year for students in this situation, because it is most likely more beneficial for the majority of students in this particular situation. For you, though, it would not necessarily be better … the school would have to prorate your loan based on the number of credits you are taking, since it would be your last semester of undergrad in the first half of the loan period. Using 8 credits, that means you would only get (12,500*8 credits in final semester)/24 in academic year = $4,166 for the semester.
Talk to a manager … there should be someone who can look critically at your situation. That person can determine if you might be eligible for Pell, and if necessary, possibly make a professional judgment decision to allow the use of the award year that is best for your situation. I am sure USC’s goal is to help you graduate. Call or visit, and if necessary, request that you be connected with a manager.