UC Plus Loan mystery ?! Can I cancel the PLUS loan after my credit check approves it?

<p>My parent has borderline credit. There is a good chance that the parent PLUS loan won't be approved. In that case, I qualify for more subsidized student loans (currently mostly unsubsidized) --- which I want. (They way my school does it, I can accept any portion of susbsidzed and any portion of unsubsidized)--so i'll just get more subsidized and take that portion only and no unsubsidized.</p>

<p>So, I'm only doing a parent plus loan in hopes that it'll get denied. However, in the off chance it actually gets approved, Would I be able to cancel it?</p>

<p>I go to a UC, and when I call the fin aid office, they won't get past the "you want to reject it after you get approved? what??</p>

<p>Can anybody help me?</p>

<p>This is the way it works for all U C's:</p>

<p>The way it says it seems like there's no way to cancel an approved PLUS loan since they disburse it directly after it gets approved and they don't even notify you if it gets approved, you just get money automatically in your student account!</p>

<p>ll of the following steps need to be completed in order to have a PLUS loan processed:</p>

<pre><code>* Your parent must complete the on-line Parent PLUS Master Promissory Note (MPN) by logging into the Department of Education website at www.StudentLoans.gov.
* You, the student, need to accept and request an amount for the PLUS award on "My Aid Award".
* After you have accepted the PLUS award, our office will mail out two (2) copies of the PLUS Confirmation Sheet to you. If you are a first time PLUS borrower, our office will send the Confirmation Sheet to you the student. If you are NOT a first time PLUS borrower, our office will send the Confirmation Sheet to your parent. Our office generally begins mailing PLUS Confirmation Sheets in mid June.
* The PLUS Confirmation Sheet needs to be filled out by the same parent that completed the Electronic Master Promissory Note.
* The PLUS Confirmation Sheet confirms the amount of loan your parent wishes to borrow and must be signed by your PARENT.
* Only one (1) copy of The PLUS Confirmation Sheet needs to be returned to our office at Office of Financial Aid and Scholarships, 102 Aldrich Hall, Irvine, CA 92697-2825. Or you may fax to (949) 824-4876.
* Once all of the above have been completed, our office sends the requested amount indicated on the PLUS Confirmation Sheet electronically to the Department of Education.
* After completing a credit check, the Department of Education will electronically send our office an acknowledgement or a denial. This process takes approximately 2 to 3 working days.
* If the loan is approved, our office will send your PLUS loan funds to the student's Zot Account on a quarterly basis.
* If the loan is denied, your parent will receive a letter from the Department of Education explaining the process of obtaining an endorser (co-signer) or provide you with information on how to clear your credit status.
</code></pre>

<p>I think you may be mistaken thinking you will get more subsidized loans if your parents are denied the PLUS. Subsidized loans are need based and not being approved for the PLUS does not change your EFC and therefore does not change your need. You do qualify for $4000 more unsubsidized loans if your parent is denied for the PLUS. Basically what happens is that you are bumped up to the independent student Stafford limit. Independent students are eligible for an additional $4000 in unsubsidized Stafford loans.</p>

<p>A parent’s credit has to be quite bad to be denied the PLUS. With borderline they will likely qualify. Your parent should be able to turn it down even if approved.</p>