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Can a school deny a students eligibility to borrow a Federal Stafford Loan based solely on the fact that his or her parent has defaulted on a Federal PLUS Loan?

April 26, 2017based borrow deny eligibility Federal loan School Stafford student

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Can a school deny a students eligibility to borrow a Federal Stafford Loan based solely on the fact that his or her parent has defaulted on a Federal PLUS Loan?

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A. No. A parent’s ineligibility to borrow a Federal PLUS Loan does not affect the student’s eligibility for a Federal Stafford Loan or any other type of Title IV federal student financial assistance. Source: Federal Student Aid Handbook, Volume 8, Chapter 2, p. 8-13.