Our Best Answer What do I do if my Parent Plus loan is denied?
The U.S. Department of Education will notify parents borrowers if the PLUS loan is denied. Parents may choose one of three options on the PLUS application if the loan is denied:
A = Parents may appeal this decision to the US Department of Education.
E = Pursue Endorser
N = Not Pursue PLUS Loan (Process additional Unsubsidized loan if eligible)
U = Undecided
If a parent is denied the Federal Direct Parent PLUS loan, the student may become eligible for an additional unsubsidized Federal Direct loan for up to $4000 for freshmen and sophomores, and up to $5000 for juniors and seniors. Choosing option “N” will allow for us to automatically process the additional unsubsidized loan for the student. If a previous PLUS denial is later approved, or another parent is approved, the student is no longer eligible for the additional unsubsidized loan.