April 26, 2010

Parent PLUS Loan Rejected. What Now?

Posted in Grants, Parent PLUS Loans, Stafford Loans, The Financial Aid Process tagged , , , at 10:49 AM by plusloans

Getting a loan rejection letter can be very disheartening and exhausting after the work you put into helping your child(ren) pay for their education. However, there are still ways to gain more financial aid through what is called an “appeal” process.

Most schools have these in place and you can get the specific details through their financial aid department. The most common way this process is handled is by sending in proof of income and a formal letter stating exactly where your finances are at, and why you or your child needs more money for school. It is best to do this process as early as possible because as the months move forward toward the beginning of the academic year, the financial aid pie is allocated to students on a first-come basis.

Some things that you should definitely do/include in the letter:

  1. Detail about change in finances — if you lost 20% of your income… say so. That would make a substantial change in your family’s EFC and could potentially net your child a lot more money.
  2. A brief description of you and your child’s efforts to raise money for school. Be genuine. If you show that you are making an effort (applying for scholarships, asking banks, etc.) you are much more likely to get more in return.
  3. Last, but not least: make the letter clean, grammatically-correct and professional. It makes your request look more polished and let’s face it… people are more inclined to read and give attention to something that is easily legible and compelling.

You should also consider borrowing additional student loans through the Stafford Loan program.  If a parent is denied a PLUS loan, the student may qualify for additional Stafford Loan funds.


  1. easy loan said,

    You really make it appear so easy with your presentation however I in finding this matter to be actually one thing that I feel I might never understand. It seems too complex and extremely huge for me. I am taking a look forward for your subsequent post, I’ll try to get the dangle of it!

  2. MS said,

    My husband and are are married but he lost his job about 7 years ago and was making 50% more than he is making now. We are renting. It severely affected our disposable income but he has more secure employment now and has been working steadily for the past 6 years with the same employer. We are both employed full time as teachers in the local public school system. Now our oldest daughter has been accepted to college and we are trying to figure out a way to pay for it. We were not given any aid except a Stafford Loan (no grants, no scholarships yet) through FAFSA. Our credit score is not good due to our struggles to get back on our feet after he was laid off. What are our options with nothing saved?

    Should we even bother applying for a Parent Plus loan only to be turned down? Should we just send her to a community college for 2 years?

    • Emily said,

      you should talk to the financial aid office at the college. if you are denied the Plus loan she will qualify for an additional $4K in loan aid directly. It isn’t much but it could help. Go ahead and apply, the worst that can happen is no and you can appeal the decision as well. Good Luck.

  3. KC said,

    I am single mom and my daughter starts college this fall 2011. I had a Bankruptcy three years ago. I was severly affeted with the economy downfall. I am very worried that it will prevent me from qualifying for the Parent PLUS loan. I have not had negative credit since them and I am doing much better since the BK. Does anyone have any advice or resources for me?

  4. […] full post on Student Loan Info for Parents Categories : student loan Best Daily Loan Tips Copyright © 2010 All Rights […]

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  6. Bank Frank said,

    This is sound advice and for the post above. Short term cash loans may be convinient but they should never be used as long term financial solutions.

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