PLUS Loan - Application Denied

Paying for College
1

<p>Hi guys, this is my first post. Upon E-signing for a PLUS loan with Chase Bank, we were notified that our application had been denied. Apparently, my dad doesn't have reputable credit although I'm not sure this is the reason for the application denial. </p>

<p>They also said that we should contact the Financial Aid Office (UT @ Austin) for information regarding the availability of alternative financial aid. I have already contacted the UT Financial office and my PLUS lender through email. Since it's the weekend, while we're waiting, I'd like to know what you guys think are some possible reasons that this happened and what are my options? Will choosing a different lender make a difference?</p>

<p>We planned on borrowing $7143 per semester ($14286 total)</p>

<h2>APPLICATION DENIED</h2>

<p>We regret to advise you that we must decline your PLUS Loan MPN for
pre-approval at this time. You will receive additional information
regarding your denial in the mail.</p>

<p>Please contact the Financial Aid Office of the college which the
student is attending for information regarding the availability of
alternative financial aid.</p>

<p>The online portion of this pre-approval is complete.</p>

<p>The result of the pre-approval is based on the following information
you provided:</p>

<hr>

<p>(Borrower Information)</p>

<hr>

<p>Pre-approval decisions are credit based. The credit reporting agency
utilized by Edfinancial Services' pre-approval system is TransUnion. To </p>

<h2>request a copy of your credit report from TransUnion click here.</h2>

2

<p>Since your parents were denied a PLUS loan, you will be able to borrow an additional 4000 through the stafford loan program.</p>

3

<p>Thanks for they reply sybbie. Although an additional 4000 from the Stafford program will greatly help, it still leaves about $10,000 remaining that we were plan on borrowing. Will I be qualified for any other awards for being denied? Thanks</p>

4

<p>Your parents may be able to get a loan from a bank that is not a PLUS loan, with a higher interest rate. If I remember correctly PLUS loan interest is deductible from taxes but other loan interest may not be.</p>

5

<p>Thanks. How high of an interest rate are we talking about?</p>

6

<p>The interest rate will depend on the banks policy...and your parents credit history. Sometimes, it can be as high as 20%....but it doesn't hurt to at least check...because sometimes it can be much lower than that. There are just so many things which go into the calculation, as based on the banks written policies.</p>

7

<p>If this was a surprise they should check their credit report, everyone gets one free each year now.</p>