Parent Plus loans

Generally, you must have a good credit history to qualify. Here are the details: If your credit report indicates you’re 90 days or more delinquent on any debt, are in default, have a bankruptcy, a foreclosure, a repossession, a tax lien, wage garnishment or a write-off of any Title IV federal financial aid during the last five years, you will not be eligible to borrow a Parent PLUS Loan unless you can obtain a credit-worthy endorser who agrees to repay the loan if you don’t. The U.S. Department of Education determines if you meet credit history criteria.

An endorser is someone who has a good credit history and agrees to repay the Parent PLUS Loan if you are unable to do so. An endorser must:

• Be a U.S. citizen, U.S. National or a permanent resident of the United States.

First, your student must grant you Parent Guest access to My ASU. Then:

• Log in to My ASU, Guest Access Tab, with your parent ASURITE User ID, and click on the “Accept Parent PLUS Loan” link. If you have more than one student attending ASU, make sure you are viewing the correct student.
• Make sure all the information on the form is correct.
• To decline, click on the decline box and click the Continue button.
• Processing of your loan will initiate a credit check through the U.S. Department of Education.
• ASU will receive notification of the approval or denial of your Parent PLUS Loan in 5-7 business days.

For all questions regarding your credit check, including credit criteria, please call the Federal Student Aid office at 800-433-3243.

There are some situations where payment can be deferred. It’s important to remember that if you are able to defer your Parent PLUS Loan, interest will continue to accrue during that time and any unpaid interest will be added to the principal balance of the loan. For more information on deferment, contact your loan servicer.

A loan servicer is a company that takes care of the billing and other services for your Parent PLUS Loan. Your Parent PLUS Loan is assigned to a loan servicer by the U.S. Department of Education after the first disbursement is paid out. The loan servicer will contact you to discuss the repayment plans available.

Federal PLUS Loans are subject to credit approval and can be denied based on certain criteria. You have two options available to consider if you are denied a Parent PLUS Loan because of your credit. If your Parent PLUS loan is denied because of your credit, you may be eligible to receive a Parent PLUS loan by securing a creditworthy endorser who agrees to repay the loan if you do not, or you may appeal the decision by documenting extenuating circumstances. Contact the U.S. Department of Education PLUS Credit Appeal line at 800-433-3243 or online at studentaid.gov/appeal-credit.

NOTE: Effective March 29, 2015, federal regulations require any parent whose Parent PLUS Loan was first denied credit and then subsequently approved (either with a creditworthy endorser or by documenting extenuating circumstances to the satisfaction of the Department of Education) to complete PLUS Credit Counseling.

You can complete PLUS Credit Counseling on studentaid.gov.

If you are unable to find a creditworthy endorser or appeal the denial of your loan, your student may request an additional Federal Direct Unsubsidized Loan. Your student can submit the Parent PLUS Loan Denial Funds Request form. There are specific limits on the amount of additional unsubsidized loans that may be awarded. The maximum annual amounts are $4,000 for first-year students and sophomores and $5,000 for juniors and seniors.

To request to be offered additional Parent PLUS loan funds, please email FASS@asu.edu with the subject line of: Offer Parent PLUS Loan.

Please complete the Master Promissory Note for Parents of Undergraduates students at: https://studentaid.gov/mpn/parentplus/information

You must remove the credit freeze from all three credit bureaus prior to accepting the Parent PLUS Loan or the Department of Education cannot render a credit decision.

If you did not remove your credit freeze prior to acceptance, please remove the credit freeze and then email FASS@asu.edu with the subject line of: Parent PLUS Loan Credit Freeze, and ASU will re-offer the Parent PLUS Loan so that you may re-accept.

Be the biological parent or an adoptive mother or father of your student. A step-parent is also eligible if their income and assets were provided on the FAFSA. A legal guardian or grandparent is not eligible to apply for a Parent PLUS Loan.