For the last three years my parents have filled out the information for the Parent PLUS loan because they knew they would be denied and the difference would be given to me in loans. Well this year they were accepted for a $16,762 PLUS loan and they don’t want it due to their low income status. Simply put, they can’t afford to repay the loan. So I called my school and explain the situation to them and their response was, “Since your parents were accepted for the loan, we cannot give you the money if they don’t accept it.”
What do I do? I can’t just take out a private loan for $16,762. If I can’t make up the difference, I cannot go back to school and finish out my senior year. HELP!
Contact the bank and adjust the amount that is needed (probably just the amount that you would have qualified for in federal loans if they had been denied?).
They do not have to borrow the full amount for which they qualified. What is the shortfall between your financial aid and the amount due? Modify the loan to that amount.
The $16,000 is the difference. Everything else is covered.
When they were denied in past years, you didn’t get $16000 as a additional Stafford loan, only $4000-5000. Yes, it is a better deal (lower interest rate) than if parents take it out, but you are now in the same position may other students are in with parents who don’t make enough to pay $16000 per year for the EFC.
The school might have other suggestions. Go in and talk to them.
All you WANTED was $4k. Ask them to reduce that Plus loan to $4k.
You’re saying that’s what you needed.
Are you saying that you need MORE than $4k? If not, then reduce the loan to $4k.
Something is not making sense. The $16k if for the uncovered full COA. In the past, you haven’t gotten loans for the full uncovered COA. Instead, you’ve “made do” with $7500 plus $4-5k from the denied Plus.
So now…ask for the Plus Loan to be reduced to $4k and “make do” with that extra loan.
You still have the Direct Loans? Right?
OR…is THIS THE PROBLEM??? Have you borrowed TOO much over the last few years that you’ve maxed out on fed Direct Loans? If so, then that’s a different problem.
$16,000 exceeds your Direct Loans Limit (either $7,500 or $12,500 [whose parents are unable to borrow a PLUS loan]) See http://www.direct.ed.gov/applying.html#loan
But they may have to in order for you to finish your school