topic Parent Plus federal tudent loan - who do they pull? in Student Loans

Parent Plus federal tudent loan - who do they pull?

kroberts67 — Sat, 23 Nov 2013 07:44:39 GMT

2 questions -

Who do they HP, and

When the student is given the amount "offered" does this mean it has already been approved, or do they run credit when you submit the Parent Plus loan docs?

Re: Parent Plus federal tudent loan - who do they pull?

Luscher — Sat, 23 Nov 2013 15:22:31 GMT

I don't know who they pull but for the amount "Offered" you enter how much aid you need and you will get it if you are accepted. Not sure what the max is on it though. The most I've taken out for it was 12,500

Re: Parent Plus federal tudent loan - who do they pull?

kroberts67 — Sat, 23 Nov 2013 17:45:16 GMT

No, I don't requet any amount because the amout offered is already decided by the FA. When I go into my son's account for the offers, it show the 3 different amounts (2 loans under his name and 1 Parent Plus), then you need to submit your acceptance. It makes it seem it is already approved, we just need to accept. But then in order to accept, the lat page advises a credit check will be done. If it's "offered", it seems that they would have already done that, so that's what confuses me. I will call them Monday but wondered if anyone knew the answer.

I'm trying to keep my TU clean of INQ so hoping they don't pull that one.

Re: Parent Plus federal tudent loan - who do they pull?

Luscher — Sat, 23 Nov 2013 20:20:45 GMT

You actually have to apply for the parent plus loan. it sounds like you did that already without knowing. It is not part of the federal aid that you automatically get when you fill out the fafsa.

Re: Parent Plus federal tudent loan - who do they pull?

SCF — Sun, 24 Nov 2013 04:57:01 GMT

I wonder if the distinction is that the loans are "offered" as part of a financial aid package by the school. The amount you're qualified to borrow is actually determined by the cost of attendance and other aid that your son is receiving. Once they determine how much you're qualified to borrow based on that formula, you can accept the school's package and proceed with taking out the loans. I believe that if the parent is turned down, the student will be offered an additional federal to loan to make up some or all of the money the parent could not borrow.

Re: Parent Plus federal tudent loan - who do they pull?

Luscher — Sun, 24 Nov 2013 15:48:28 GMT

I remember we got the normal couple thousand of subsidized and unsub and then needed a parent plus loan and were denied, then we could have applied for more federal aid but the max would have been only another 4k. so we got a co-signer on the plus loan to get 12,500 on top of the federal

Re: Parent Plus federal tudent loan - who do they pull?

kroberts67 — Tue, 26 Nov 2013 16:29:57 GMT

ANSWERS:

They usually pull EQ (EQ 90%, TU 10%).

A federal tax lien showing on credit regardless of the status (being paid on time or not) will be considered adverse.

Ironically in my case, EQ was the only one who doesn't show my lien. My son is off to college in Jan!