A parent applies for a Federal Direct PLUS Loan to help finance their child's education but is denied due to an adverse credit history. Which of the following options is available to the parent to potentially still obtain the PLUS Loan?
A
The parent can appeal the decision directly with the U.S. Department of Education, providing a detailed financial hardship letter.
B
The child can co-sign the Parent PLUS Loan application to mitigate the parent's adverse credit history.
C
The parent can obtain an endorser (co-signer) who does not have an adverse credit history.
D
The parent must wait one year for their credit history to improve before reapplying.
✓ Correct Answer: Option C
If denied a PLUS Loan due to adverse credit history, a parent can obtain an endorser (similar to a co-signer) who does not have such a history, or document extenuating circumstances.
💡 Why is C) the correct answer?
The correct answer to the question "A parent applies for a Federal Direct PLUS Loan to help finance their child's education but is denied due to an adverse credit history. Which of the following options is available to the parent to potentially still obtain the PLUS Loan?" is Option C: The parent can obtain an endorser (co-signer) who does not have an adverse credit history..
The other options — A) The parent can appeal the decision directly with the U.S. Department of Education, providing a detailed financial hardship letter., B) The child can co-sign the Parent PLUS Loan application to mitigate the parent's adverse credit history., D) The parent must wait one year for their credit history to improve before reapplying. — are incorrect for this College Advising question. As explained above: If denied a PLUS Loan due to adverse credit history, a parent can obtain an endorser (similar to a co-signer) who does not have such a history, or document extenuating circumstances.
📚 About This College Advising Practice Question
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