If Your Direct Parent PLUS Application is Denied | Penn State Office of Student Aid

Your Direct Parent PLUS Application is Denied

Obtain an Endorser or Document Extenuating Circumstances

If your Direct Parent PLUS request is denied, you can obtain an endorser. In some cases, you can document extenuating circumstances with the U.S. Department of Education.

The U.S. Department of Education will provide you with a credit appeal and endorser information. Contact the U.S. Department of Education Student Loan Support Center at 800-557-7394 for more information regarding your denial, appeal, or endorser process.

A New MPN is Required if you Pursue an Endorser

If you are approved with an endorser (co-signer), you will need to sign a new Master Promissory Note (MPN) for each endorsed loan.

If you intend to endorse multiple Direct PLUS applications (for multiple students or multiple applications) please note the following:

studentaid.gov will allow you to sign multiple MPN's at one time but will only link to one MPN at a time. Once they link the MPN to the first endorsed application all other pending MPN's will be expired.
We recommend signing the first MPN and waiting for it to link to the application before signing the MPN for the next. You will know that it is linked when it appears as an available aid source in LionPATH.

If you have technical difficulty signing the MPN, please contact the U.S. Department of Education's Student Loan Support Center at 800-557-7394.

Direct PLUS Counseling

Direct PLUS Counseling is required for all borrowers who are initially denied due to adverse credit, but later approved with an endorser or through a credit appeal.

You must complete the required PLUS Credit Counseling on studentaid.gov in order for the loan to disburse. This counseling requirement takes approximately 15-20 minutes to complete.

Additional Unsubsidized Loan Eligibility

If you are credit denied, we will review your student's eligibility for additional Direct Unsubsidized loan funds. However, if you, another parent borrower, or credit-worthy endorser are later approved through the appeal process, your student will no longer be eligible for any un-disbursed additional Direct Unsubsidized loan funds.