Parent PLUS loans are generally not hard to get approved for, as there is no minimum credit score requirement. Approval depends on a credit check for "adverse" items rather than creditworthiness. If you do not have recent foreclosures, bankruptcies, or significant delinquent debt (over $2,085), you will likely be approved.
Parent plus loans get denied because you have an adverse credit history--meaning a history of not paying your bills on time. The fact that you settled will eventually help your credit score but Parent Plus loans still consider it an adverse history. Them denying you might be for the best.
Unless you have current collections it's pretty easy to get approved for a parent loan, your credit score is fine. If you're declined you can appeal and prove you've paid off anything.
There is no minimum credit score required for a Parent PLUS Loan. However, borrowers cannot have an adverse credit history as defined by the U.S. Department of Education.
Once the PLUS application is submitted the borrower should be notified within the next 24-28 hours of the credit decision. SDSU will receive an electronic confirmation of your application but may take 3-5 business days for our office to process your loan request on our end.
Log in to your StudentAid.gov account and check “My Activity” to see if your PLUS loan application is on file. Call your school for an update on your PLUS loan award. Contact the Federal Student Aid Information Center if you have questions about your credit appeal process.
Common Reasons a Mortgage Loan is Denied
A Parent PLUS Loan is anything but a plus for your financial goals. In fact, this kind of borrowing is a special kind of toxic because it involves a student and their mom or dad. The only thing worse than debt is the kind that hangs over a family relationship!
A parent PLUS loan enables your parents or stepparents to borrow money that can be applied to your educational expenses. PLUS loans are loaned directly from the federal government to the borrower. This loan is not based on your family's income or asset information provided on the FAFSA.
A Parent PLUS loan is typically denied due to an "adverse credit history," meaning specific negative credit events like having debts over $2,008 that are 90+ days delinquent, recent charge-offs, collections, tax liens, foreclosures, wage garnishments, or bankruptcy discharges within the last five years. Other reasons can include failing general federal aid requirements or incorrect application information, but the primary hurdle is the credit check for adverse conditions.
To be eligible for a Direct PLUS Loan for parents, you must be a biological or adoptive parent (or in some cases a stepparent), not have an adverse credit history, and meet the general eligibility requirements for federal student aid (which the child must meet as well).
The "7-year rule" for student loans generally refers to when negative marks, like defaults, are removed from your credit report (around 7 years after the first missed payment or default date for federal loans, 7.5 years for private loans), but the debt itself doesn't disappear and must be paid off; it's also a benchmark in bankruptcy proceedings where federal loans can become dischargeable after 7 years from when payments were due, though proving "undue hardship" is required and difficult.
You can borrow $50,000 - $100,000+ with a 750 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
However, Parent PLUS Loans will be capped at $20,000 per student per year and a $65,000 lifetime limit beginning July 1, 2026. Parents who borrowed before that date can continue borrowing under the current limits for up to three additional years or until their student completes their program. Good news.
Here are seven other options:
Credit reports showing late payments, collections, or significant derogatory events—such as bankruptcies or foreclosures—can signal financial mismanagement and complicate underwriting.