What if I do not pass the credit check for a Parent PLUS Loan?
To qualify for a PLUS loan, the parent borrower must pass a modest credit evaluation and not be in loan
default or owe a grant overpayment.
Unlike credit checks for other types of borrowing, the PLUS credit check merely determines if the
borrower has an adverse credit history. Indications of adverse credit include being 90 days or more
past due in the repayment of a debt greater than $2085, having been in default or foreclosure on a loan,
or having had a bankruptcy discharge or write-off of a federal education debt during the last five years.
Parents whose credit was denied will be notified by Direct Loans. A parent/student will have the
following options:
1. The declined Direct PLUS Loan may be remedied with an acceptable endorser, who is willing to
assume the debt if the parent fails to pay the loan.
2. Direct Lending may approve a PLUS loan if the parent can demonstrate extenuating circumstances,
such as updated credit information that shows they have brought their accounts up to date or have
made satisfactory arrangements to repay their debts.
3. The student may qualify for additional unsubsidized Federal Direct Stafford loan of up to $4,000 or
$5,000 depending on their grade level. If an additional unsubsidized loan is desired, please complete
page 2 and return the form to the Financial Aid & Scholarship office.
California State University,
19-20
Parent PLUS Denial
PLUSappDenial20