How to Act on your Denied Parent PLUS Loan

How to Act on your Denied Parent PLUS Loan 

The U.S. Department of Education (ED) will notify the parent borrower if they are denied the Federal Direct Parent PLUS Loan. The parent may still be eligible to receive a Direct PLUS Loan or have other options available. Please review the additional information below regarding the options available after a parent is denied. 




The three options available are as follows: 


You can appeal the adverse credit decision with the Direct Loan Applicant Service Center at 1.800.557.7394. You can also do this online: 

Step 1. Navigate to the Federal Student Aid webpage at

Step 2. Click the "Parent" tab and then click the "Appeal a Credit Decision" link on the right hand column. 

screen shot of step 1 and 2

Step 3. Click the "Log In" link and login using your (the parent who applied and was denied the Parent PLUS Loan) FSA ID. 

screen shot of step 3

Step 4. Follow the prompts to submit the appeal. 



The loan endorser/co-signer can follow these steps to endorse the loan:

Step 1: Navigate to the Federal Student Aid-Endorse a Direct PLUS loan webpage at

Step 2: The co-signer has two login options: 

Option 1

  • Enter the Borrower's last name (this is the name of the parent who applied for and was denied the loan) AND the Endorser Code that was provided to you by the parent borrower 


Option 2

  • Enter ONLY the Award Identification Number provided to you by the parent borrower in the second box
  • Click "Log In to Start"
screenshot of steps 1 and 2

Step 3. Follow the prompts.


You and your student may choose to have the denied Parent PLUS Loan canceled which would allow for the student to be offered an additional Federal Direct Unsubsidized Loan. This is only an option if both (if applicable) parents have been denied the Parent PLUS Loan.

Per federal regulations, if one parent is approved for a Federal Direct Parent PLUS Loan, the student does not qualify to receive additional Federal Direct Unsubsidized Loan funding. The Unsubsidized loan will not be offered for the same amount as the Parent PLUS Loan, often times it is significantly less which means, your student will most likely, still have a large gap between costs and funding available. 

Loan amount offered: 

A one-time annual amount for the additional Federal Direct Unsubsidized Loan is based on the student's grade level:

  • First Year and Sophomore: Up to $4,000 for the academic year 
  • Junior and Senior: Up to $5,000 for the academic year

How your student should request the additional Unsubsidized Loan:

Step 1: Your student should submit an email to OSFA by navigating here:

Step 2: They will click the Student Net ID Login option and login using their Net ID login information

Student Net ID Login button

Step 3: They should click the following radio buttons: 

  • Are you a Student? YES
  • How can OSFA help you today? SUBMIT A QUESTION
  • Your student's information will pre-populate. 

Step 4: Enter the correct term/semester 

Radio buttons and term selection

Step 5: In the "My Question" section, make the following selections: 

  • Category: Student/Parent Loans
  • Subcategory: Parent PLUS Denial-Addtl Unsub Req.

In the body of the message, provide the student's name and 8-digit Student ID (SID) and click Submit

Category selection and submit


Students, please coordinate this option with your parents as you should not select this option if your parent is pursuing options 1 or 2. It will cause processing delays and issues.