A 17 year old youth loan applicant is requesting a $7,500 term OL to buy a used combine to refurbish for a FFA project. What should the loan official do?

The appropriate action for the loan official in this scenario is to reject the loan request because it exceeds the loan limit for youth loans, while also working with the applicant to find a possible alternative request that is within the loan limits. Youth loans, which are designed to assist young individuals in gaining experience in agricultural-related projects, have specific maximum loan amounts set by regulatory guidelines. If the requested amount exceeds this limit, it is necessary to refuse the request as it cannot be fulfilled within the established parameters.

By suggesting an alternative request, the loan officer is taking a proactive approach to assist the applicant. This strategy not only helps the young applicant navigate the situation but also encourages them to engage with their agricultural interests in a manner that aligns with the loan program's requirements. This support could include discussing smaller loan amounts or other financing options that might allow the applicant to still participate in their FFA project effectively.

Other options do not satisfactorily address the specific issue of exceeding the loan limit or appropriately guiding the applicant through the loan process, making option A the most suitable course of action.