Federal PLUS Loans are subject to credit approval and can be denied based on certain criteria. You have three options available to consider if you are denied a Parent PLUS Loan because of your credit. If your Parent PLUS loan is denied because of your credit, you may be eligible to receive a Parent PLUS loan by securing a creditworthy endorser who agrees to repay the loan if you do not, or you may appeal the decision by documenting extenuating circumstances. Contact the U.S. Department of Education PLUS Credit Appeal line at 800-557-7394 or online at studentaid.gov.
If you’ve been denied a Parent PLUS loan and plan to secure a creditworthy endorser, you will be required to complete an Annual Student Loan Acknowledgment for Federal Student Loans. To complete the loan acknowledgement and ensure that your endorsed PLUS loan is sent to ASU, go to Complete an Annual Student Loan Acknowledgment for Federal Student Loans.
NOTE: Effective March 29, 2015, federal regulations require any parent whose Parent PLUS Loan was first denied credit and then subsequently approved (either with a creditworthy endorser or by documenting extenuating circumstances to the satisfaction of the Department of Education) to complete PLUS Credit Counseling.
You can complete PLUS Credit Counseling on studentaid.gov.
If you are unable to find a creditworthy endorser or appeal the denial of your loan, your student may request an additional Federal Direct Unsubsidized Loan. Your student can submit the Parent PLUS Loan Denial Funds Request form. There are specific limits on the amount of additional unsubsidized loans that may be awarded. The maximum annual amounts are $4,000 for first-year students and sophomores and $5,000 for juniors and seniors.