What to Do When a Parent Is Denied a PLUS Loan
WTOP
Last updated: August 25, 2026
Parent PLUS loans are federal loans designed to help parents finance their children's college education. While generally easier to qualify for than private loans, parents can be denied. This guide outlines steps to take if a Parent PLUS loan application is rejected.
- When a parent is denied a Parent PLUS loan, the primary next step is to review the credit report that led to the denial. If there are errors, the parent can dispute them with the credit bureau.
- If the denial is due to adverse credit history, the applicant can seek an endorser who has a good credit history. Alternatively, the parent can provide documentation to the U.S. Department of Education demonstrating that extenuating circumstances explain the adverse credit history.
- If the loan remains denied after these steps, the student may then be eligible for additional unsubsidized Direct Loan funds. The amount of additional unsubsidized loan eligibility is determined by the cost of attendance minus other financial aid received.
- This process ensures students can still access financial resources for college even if their parents are unable to secure a Parent PLUS loan. It highlights alternative pathways for student financial aid.
