I don’t think I’m going to get rejected for the federal Parent Plus Loan but should I apply anyway before applying for a private loan since students can get additional federal loans if a parent can’t get a feaderal plus loan? My credit is good, but I have a relatively small studuent loan myself from grad school.
Do you need a Parent Plus for your kid to attend college?
Do you think it’s a good idea to take out a college loan, when you (the parent) already have your own college debt you are repaying?
If you don’t need the loan…don’t apply for it.
This is information I found about Parent Plus Loans:
Eligibility for a Parent PLUS Loan does not depend on the borrower’s credit scores or debt-to-income ratios.
The borrower of a Parent PLUS Loan must not have an adverse credit history.
What causes an adverse credit history:
A current delinquency of 90 or more days on more than $2,085 in total debt; or
More than $2,085 in total debt in collections or charged off in the past two years (before the date of the credit report); or
Default, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of federal student loan debt in the past five years (before the date of the credit report)
If a parent has an adverse credit history, the parent can still borrow from the Parent PLUS Loan program with an endorser (cosigner) who does not have an adverse credit history.
From my understanding, as long as you’re not in negative standing on your student loan or other bills, you should be ok. Good luck.
@thumper1 - If I were to get rejected for the parent plus loan, my student would have the option of getting additional subsidized loans. Based on the info. provided by itsallaboutme, I would likely get approved so I won’t waste my time.
@itsallaboutme -Thank you!