<p>My son will be going to study in France for a month this summer. I need to take another ParentsPLUS loan to pay for this and will also add dollars to the loan for spending money. </p>
<p>Since my son's school has 'lost' so much over the 2 yrs., since he's transferred, I'm afraid to have the money sent to the school. I have no faith they will send me the overage check which needs to be to us in time for his trip.</p>
<p>Does anyone know if this can be done with the ParentsPLUS loans? If this can be done, does the money get reported as income to me? I think I'll need to do the same thing for the 2012-2013 year since he's planning on living off campus with a few friends and I'll need the loan dollars to pay for his housing.</p>
<p>Hmmm…
I doubt that the money would be sent to you. The purpose is to cover school costs, so the money gets sent to the school to cover any balances THERE, and then the remainder is sent out.</p>
<p>Call the school and find out how fast they can process and return money.</p>
<p>Every school I know has the money sent to them and any remainder is sent to the parent or given to the student if so requested. I don’t understand how the school “loses” the funds. These are federal funds and the accounting on them is quite rigorous. They can’t just take the check without costs to justify it. I would suggest you get a print out on what they have been charging you and reconcile your account with them.</p>
<p>In our situation any money sent to the school & then refunded, is actually sent to the student. Only the student can request to have the refund. This may depend on school.</p>
<p>My Ds school utilizes an outside bank to process refunds. It took months for D to receive the refund ( part of that was because all communication had to go through her school email & because she did not want to have an account with that bank.)
We also did not have a loan, this was our money.</p>
<p>Wow, what a pain, Emeraldkity. I believe when completing the info for PLUS, there is a question that asks what should be done with excess funds, and the choices I remember are fot the kid to be able to get the money, let the excess remain in the account for future charges, or for the parent to get the refund. Whether individual school honor that selection, I don’t know. We got a refund lastyear after stipulating that the excess should go to our son. They wouldn’t give him the money and sent it to us despite our stipulation. Wasn’t worth arguing with the school about it.</p>
<p>I see too many risks in sending the money directly to a person. The purpose is to pay for school, so it should go through the school. Though most parents in such circumstances are honest and will apply the costs as they should be used, there are those who will not an might use the money in other ways. Having it sent directly to the school, prevents a goodly amount of this.</p>
<p>It was a pita.
This is the bank they used.
<a href=“http://www.higherone.com/[/url]”>http://www.higherone.com/</a>
reading the school site, I do read that PLUS loans are reimbursed to the parents. everything else to the student.
What with the interest & origination fees, we thought it would be easier to just pay it this year, but this is also the first year they have used a third party to manage financial services.</p>
<p>My daughter is doing a summer program with her school and another college in her consortium and I needed a small loan to pay for it. I had to take out a parent loan, it was sent to her school and then they had to cut me a check for whatever amount I wanted, since it was a 'refund" and then I had to send the money to the other school which was handling the finances.
It took about 2 weeks from beginning to end, but it was the only option I saw at the time with parent loans.</p>