Plus loan

Paying for College
1

<p>Will the PLUS loans be rejected if my parents have bad credit scores? Mostly bc we are short selling a house and also a loan modification..</p>

2

<p>PLUS are credit based loans and can be rejected for poor credit scores. If the PLUS is rejected, the student typically qualifies for more Stafford money.</p>

3

<p>A PLUS denial will result in an additional $4000 unsub Stafford for freshman/sophomore & an additional $5000 unsub Stafford for junior/senior (less if the PLUS loan amount offered was less, of course). Some schools have a place on the PLUS application where the student indicates that he wants the extra unsub given automatically if the PLUS is denied - other schools require a loan revision request to be submitted.</p>

4

<p>Aren’t unsub stafford loans ‘better’ than the PLUS loans b/c lower interest rates?</p>

<p>And thank you for the replies.</p>

5

<p>An unsub Stafford is 6.8% compared to a PLUS being 8.5%. But the loans will be in your name rather than your parents.</p>

6

<p>Hmm, so I have a proposed 3.4k in PLUS loans from UCI, but if the loan is denied b/c of my parents’ credit scores, which is likely, I can expect another offer of stafford loans? Of around 3.4k?</p>

<p>Ok thank you</p>