Student Loans

[llecs]

I'm guessing "parent plus" is a SL. Moving it here for more help.

[SCF]

I believe that Parent Plus loans DO involve some form of credit check, but I'm not positive on that.  If they do, it's possible you could be denied because of the state of your credit and debt-to-income ratio.  I would call the financial aid office at your child's school and ask them what the process is for getting a Plus Loan (does it involve a credit check) and what the guidelines are.

[Minman]

Hi SCF- thank you for your thoughts. I think I may have found the answer. It seems that if you have an adverse credit score you will be denied for a Parent Plus Loan. The Debt Reduction Programs are designed to create a adverse credit score for their participants by holding back payments to their creditors in order to gain negotiating power in reducing the debt to a lower settlement amount.

[Minman]

However, Debt management programs may a way to avoid the adverse credit score. This program includes full repayment of all principal balances and interest. As long as all payments are made on time each month the participates credit score will not reflect a delinquency.

[LynnInMN]

PLUS loans are credit based.  You will more than likely be denied.  However, you child will then be entitled to additional unsub loans.

From the DOE site

If a dependent student's parents are denied a PLUS loan, or the college
financial aid administrator determines that the parents are likely to be denied
a PLUS loan, the student becomes eligible for increased unsubsidized Stafford
Loan limits, the same limits as are available to independent students

[snowytimber]

Yes, you can be denied.  Before my credit improved, I would apply every year to get denied then they would give my son an additional $4,000.