New Data Shed Light on Use of PLUS Loans and Controversial Loan Denials

By Goldie Blumenstyk. Colleges that have complained that the U.S. Department of Education has been too strict in denying PLUS loans to their students now have a little better picture of the reason for those denials. And policy advocates who say the rules still allow overborrowing by students and families who may not be able to repay the loans may have some new talking points, too. Data released by the department on Wednesday show that nearly 70 percent of all PLUS-loan applications initially rejected in the past two years were denied on the grounds that the borrower had other debts in collection or had settled a debt for less than the full amount. Read more...