In the event the borrower is denied the PLUS loan, they will have the option to either;
(1) appeal the decision, or
(2) re‐apply with a co‐signer, or
(3) withdraw their application.
If you choose to appeal the decision the process begins online at https://studentaid.gov/appeal-credit where you will be asked to document your extenuating circumstances. Appeals can take up to two weeks to process so make sure to plan accordingly. If approved, you will be notified by Direct Lending Services and our office will receive notification shortly thereafter. You MUST also complete online PLUS Credit Counseling.
If you choose to reapply with a co-signer you will follow the same general process as above by documenting your extenuating circumstances at https://studentaid.gov/appeal-credit. If approved, you will need a credit-worthy co-signer and have them complete both a Master Promissory Note (MPN) and Co-Endorser addendum. PLEASE NOTE: When applying with a co‐signer the amount of your loan changes from a NET amount to a GROSS amount. Your co‐signer will need to adjust the amount of loan they are approving on their addendum if you wish to maintain your original request. If you do not know how to do this, please contact our office beforehand. A Co‐Endorser addendum is only approved once, meaning incorrect information will have to be discarded and the process will start all over. You MUST also complete online PLUS Credit Counseling.
If you choose to withdraw your application for a Federal PLUS Loan, the student will have the option of borrowing an additional $4,000 in Direct Unsubsidized Loan, assuming they meet the eligibility requirements. This amount increases to $5,000 for students in their senior year.