I am the signer to my son's parent-plus college loan. My husband is self-employed and may file for bankruptcy and shut his company down. I am a cosigner to two of the business loans. If my husband proceeds, his attorney advised that I will have a "discharge" on my credit report, which is otherwise good and has no issues. If I read the FAQ (see below) correctly, I would probably not be able to get my son a parent-plus loan for his junior and senior year. Am I wrong?

Thanks for any and all help!

Eligibility for the PLUS Loan depends on a modest credit check that determines whether the parent has an adverse credit history. An adverse credit history is defined as being more than 90 days late on any debt or having any Title IV debt (including a debt due to grant overpayment) within the past five years subjected to default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off.

Maybe and maybe not. The parent PLUS loan is based on credit so any negative marks on your credit could prevent you from being approved. However, if you are denied a parent PLUS loan your son can take the denial letter to the financial aid officer at his school and request additional federal aid.