Can you be declined for a student loan?
Yes. If you're talking about a federal student loan, most students are automatically approved for a given amount that is determined by their dependency status (i.e. dependent or independent) and their grade level. For example, a first year dependent student will be eligible for $5,500 and an independent will be eligible for $9,500. However, there are some circumstances that can prevent a student from receiving any kind of federal aid. The most common are 1) the student is in default on a previous federal student loan 2) the student is not a U.S. citizen or eligible non-citizen 3) the student is a male who failed to register for selective service before the age of 26 and 4) the student was convicted of a drug offense while receiving federal student aid. Parent PLUS loans, which are federal student loans in the parent's name, can be denied if the parent doesn't meet the credit requirements for the loan. Another possible reason to be denied is that you received aid from other sources that exceeds the cost of attendance at your school. Since you can only borrow up to the cost of attendance, if that is already covered, you won't be awarded any more loan funds. If you are talking about private student loans, those are based on credit, so you will be denied if your credit score does not meet the lender's requirements. It is rare for younger students to be able to meet those standards because typically they don't have a long enough credit history to qualify. So, in most cases, they will be denied unless they apply with a credit-worthy co-signer.
Why does my Cal Grant appear "unconfirmed" on my Fin Aid award?
BLK: Most likely because of your EFC score, your school's financial aid office has assumed that you would be awarded a Cal Grant - they added it to your aid award notification, but noted that the award had yet to be officially confirmed by the CSAC. The CSAC does not confirm final awards until they have received and recorded notification that all qualifying applicants have successfully graduated. If your graduation took place fairly recently, it's quite possible that the Commission has yet to update your records with that final "check mark" - that would be keeping them from giving your school the go ahead. You don't need to do anything to confirm your graduation - you would only need to do "something" if you receive a notification from the CSAC asking you to verify that you successfully finished out the school year. The "unconfirmed" notation should disappear within a week or so. I hope that helps - good luck!
Does this reply mean that my parent qualified for the PLUS loan?
This means that she has qualified for the loan. This doesn't mean that she can get every penny of the loan though. You may get a smaller amount. Keep in mind, although she applied, the lender knows that YOU will be the one to ultimately pay it back, so it should not come as a surprise that she got it. At this particular time, the specifics will be given to the school. You will also receive a letter from the lender once things are settled with the school. Now you need to get in contact with the school, let them know that you applied. The school may have more paperwork for you to fill out and contracts. They then will be the ones to get in contact with you and let you know what the deal is with the loan, how much you were awarded and so on. Best of luck to you in your college career.
Direct Plus Loan: What does this letter mean?
I am an incoming freshmen in college and new to the loan stuffs and so are my parents. After my dad filled out the Plus Loan request, he got this message....What does it mean? Did he qualify for the loan? Please explain to me in details TT_TT Dear Mr. X, You are approved to borrow a Direct PLUS Loan, pending the receipt of additional loan records from the school you or the student attends. This determination is based on the results of a credit check with: EQUIFAX INFORMATION SERVICES LLC P O BOX 740241 ATLANTA, GA 303740241 (800)685-111, The pending loan records must be received within the next 90 days. If the loan records are received more than 90 days after the initial credit check, a new credit check will be conducted to determine your continued eligibility. If you have questions regarding the next steps, the status of your loan, when the loan will be disbursed (paid out), or no longer wish to receive the loan, contact the school's financial aid office. After the first disbursement of your loan has been made, your loan will be assigned to a loan servicer and you will be provided with the servicer’s name, address and contact information. Your servicer will service, answer questions about, and process payments on your loan after you enter repayment.