Parent denied PLUS, what are my next steps?

<p>Our EFC is 4015, I received the maximum Stafford for that EFC. After my scholarship, Pell and Stafford loans, working all summer and part-time during the school year, there is more than $15,000 to come up with. My parents were denied a PLUS loan (this was through Discover - if you're denied there will you be denied everywhere, or are some easier to qualify for?), my understanding is that I can be eligible for additional Stafford. Am I eligible to get <em>that</em> much more in Stafford loans? If so, what/who do I contact to try to get that in motion? My school?</p>

<p>No, you’re only eligible for an additional $4K in Stafford loans. Contact your FA office for instructions on how to document the denial.</p>

<p>Do you know if I should try for a private loan in my name, or with my parents being the only ones willing to be co-signer (and already having been denied for a parent loan) would that be pointless?</p>

<p>Do you have a steady income and a good credit history? That would be the normal requirements for a loan. It sounds like your parents won’t be approved as cosigners either as the credit check for Plus loans is much more relaxed than for private loans. Can you possibly defer your admission and work for a semester to save the money? It sounds like you chose a college that’s more expensive than you can afford. Please think about your other options before you bury yourself in $20K+ in loans every year…even on the 30 year repayment plan that would be over $500/month in payments! That is far too much debt for any undergrad degree.</p>

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<p>If I document my one parent’s denial and then am able to get a private student loan with the better credit of my other parent as cosigner, can I still get the extra $4000 from Stafford? </p>

<p>It would be a shame to leave my wonderful school (even temporarily) at this point because I’ve done so well (4.0, very involved) and can probably graduate a semester early at the rate I’m going. I’m a junior and parents and I have been able to pay for the tuition gap from savings until this year, so my loans would only be for 1 to 1 1/2 years so would not be too large.</p>

<p>The criteria for the extra Stafford loan seems to only be the denial for Plus loan. So, yes, I think that would work and a private loan should not affect eligibility.</p>

<p>Can your more credit-worthy parent apply for a PLUS? You don’t have to use the FAFSA parent for PLUS.</p>

<p>You still have to be certified through your school for a private educational loan. If you get the extra $5000 (juniors get 5k) for PLUS denial, you will be able to have a private loan certified for the original amount of the PLUS eligibility less the $5000 unsub due to PLUS denial.</p>

<p>kelsmom, wouldn’t it be a better deal for the student to use Stafford vs. Plus or private w/cosigner? Seems like the rates and repayment terms would be more favorable than Plus, don’t know what the private loans are running though!</p>

<p>The OP said that Stafford is max’d & $15k is still needed. In that case, there is only $5000 available in additional unsub due to PLUS denial. The only alternative for the remaining $10k is a private loan. </p>

<p>Unless the parent OP said could co-sign a private loan is willing to apply for the PLUS him/herself for the $15k (OP wouldn’t be eligible for additional unsub if Parent #2 gets the PLUS).</p>