WASHINGTON — After protests from historically black colleges that new underwriting standards for Parent PLUS loans have hurt their institutions, the Education Department has told colleges it will simplify the appeals process for students who are denied loans but stands by its new criteria. In a notice sent to institutions, the department announced it would create lists of applicants who are eligible to appeal loan denials and inform applicants by e-mail if they qualify.
Since the department tightened underwriting standards in 2011, 400,000 parents have been denied loans. The denials have fallen disproportionately on historically black colleges, leaders of those institutions have argued in asking the Obama administration to reconsider.
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- Speaking to black college leaders, Arne Duncan apologizes for PLUS loan denials
- U.S. should change PLUS loan program to protect borrowers and taxpayers (essay)
- Standards tightening for federal PLUS loans
- New report asks policy makers to impose tighter standards on Parent PLUS Loans
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