<p>Hi I'm new on here and need a little help. I'm in beauty school and since I'm technically still a dependent I had to get a Parent Plus loan Through my mothers name. We set it up so that I could use it for expenses and The checks came directly to me. But now my mother feels that this is her loan and she can use it anyway she wants to and that's what she want to do. She is demanding that I give her money and she told me she doesn't care if it leaves me with nothing. She is using the loan to pay her own bills. I would like to know is she is able to do that. Is the loan really her money and is it really up to her whether I can use it for school or she can use it for her own uses? I thought It was part of my financial aid. She is threatening to take me to court saying that I am stealing from her by trying to keep the loan. I need help!</p>
<p>It is part of financial aid - Parent Plus loans, that is. </p>
<p>I have no idea that you could get a Parent Plus for beauty school.</p>
<p>Yea you can get the same financial aid for beauty school that you can for community college or a trade school and such.</p>
<p>The Parent Plus loan is in your mother’s name…but it is supposed to be used for college expenses. If you have to leave college because you can’t pay your bills, your MOM will have to repay that loan at that time.</p>
<p>How much does this school cost? If you can get the same aid as for a regular college…could YOU have taken out the Direct Loans $5500 for first year? Those would have been disbursed directly to your school.</p>
<p>I thought the disbursements were made to the colleges, directly. </p>
<p>I believe mom can cancel the loan, before the second payment made. </p>
<p>Weren’t you eligible for a direct student loan? Even if a minor, it is done in student name.</p>
<p>I Got a couple Direct student loans but they didn’t cover the full cost so I had to get a direct plus loan and since I’m not 24, married, or with child I had to do it as a dependent. But I’m still confused if I have to give the money to her for her daily expenses.</p>
<p>Let her try to take you to court. She’d likely get scolded from the judge. The money is supposed to go for school related expenses…not her bills. </p>
<p>How much is the loan, and what are your “expenses” that you intended the money to be used for? Gas? </p>
<p>How is the tuition getting paid for? Isn’t the money supposed to go to the school first to pay for tuition and fees, and then if there’s anything left over it goes to you for other expenses.</p>
<p>I guess your mom could claim that you should give her “some” of the money to go towards your living expenses at home (food, etc), but to expect you to hand over all of it is crazy.</p>
<p>See that’s exactly what I’m thinking! I use the money for gas, food, and supplies for school and I don’t even live with her so she has no expenses through me. I pretty much asked her to take me to court because I’m fairly confident it would go in my direction. But I’m just not sure and I don’t wanna go to court if she is actually correct. I’m even willing to go to the courthouse and marry my boyfriend just to get a loan in my name at this point.</p>
<p>What was the original agreement with mom? Has she lost her job or experienced some sort of financial difficulty?</p>
<p>How much longer are you in school? </p>
<p>And, please, don’t get married just because you want independent loan status.</p>
<p>Ok…so you don’t live with her, </p>
<p>Unless your BOYFRIEND has a very good income and great credit, no one is going to lend to you even if you get married. You can’t get extra undergrad loans - even if you’re married - if you don’t have income/credit worthiness.</p>
<p>I don’t know if this would work…if you threaten to cancel your enrollment, I don’t think any funds will get distributed.</p>
<p>The original agreement was that the money would be for my school related expenses and I even told her that after I get out of school I was more than willing to pay that back. I didn’t except her to pay it back at all. And I don’t know of any changes in her life except for a new love interest. Her new Partner is having financial troubles and I’m worried she is giving the money to them.</p>
<p>Here are the rules to the parents:</p>
<p>Using the loan for education expenses: You may use the loan money you receive only to pay for your child’s education expenses at the school that is giving you the loan. Education expenses include school charges such as tuition, room and board, fees, and indirect expenses such as books, supplies, equipment, dependent child care expenses, transportation, and rental or purchase of a personal computer.</p>
<p>Thank you very much. That answers my question. I just wish it didn’t have to come to this. I guess money really is the root of all evil =(</p>
<p>Nikita - First of all, I LOVE your thread title . . . best one I’ve seen in a long time!</p>
<p>Second, when your mom took out the loan, she agreed (in writing) that the loan would be used only for your school expenses (as set out in post #13 above). This was a condition of receiving the loan, so that’s what she had to agree to, even if she doesn’t remember.</p>
<p>If she now uses the loan money for something else, she’s not only in breach of the loan agreement (which means the lender could sue her), but it’s entirely possible that she could also be charged with fraud, if it could be shown that she lied when she said she was going to give you the money for school.</p>
<p>Do NOT give her any more money! And I hope this is a one-year program, because it certainly sounds like she’s not going to be helping you in the future . . . :(</p>
<p>I would NOT suggest getting married. BUT independent students do get additional Direct Loan money, I believe.</p>
<p>Again…how much ARE these loans? And how much does this school cost?</p>
<p>With colleges, the money goes directly to the school, they take out all the direct bill expenses, and the excess then goes to the student. If you need and use that money for allowed expenses, tell your mother that the whole reason you wanted the loan was because without it you could not go to school, and show her what she signed, as another poster shows, that the loan money is for that, not for her, and it’s a breach of contract for you to use the money in any way other than allowed, which includes funneling it to your mother the way she wants. It;s illegal and it’s a federal crime to do so.</p>
<p>HOw much more time and money do you need ot finish your program? You do realize that your mother is not lkely to apply for another loan for you, so you aren’t going to have that source of money next year?</p>
<p>I’m a little confused about why YOU’RE confused. The federal loan is a loan for direct college expenses and college-related living expenses. It’s not supposed to be used for anything else regardless of whose name it is in. It is labeled as a student loan, why would you think for a second that she could use it for her bills? Student loans aren’t for a parent’s bills, they are for college. It’s very simple. Don’t give your mom the time of day, and if she wants to take you to court, it won’t even make it that far. As soon as they know the details they’ll tell her to get lost.</p>
<p>I’m sure the OP isn’t really confused and knows what she heard. But we’re talking about dealing with a mother who is insisting that the loan money belongs to them so the OP is simply double checking. Like other posters, I hope the OP doesn’t need dear old Mom’s help next year, because I doubt that’s going to happen. Oh, and I also agree - OP never get married thinking it solves problems like this. That only leads to a new troubles. </p>
<p>QLM</p>
<p>The problem is that since it’s a Parent Plus loan, the funds will be in a check in the MOM’S name unless she authorizes the check to be issued to the D…which it doesn’t sound like she will do that.</p>
<p>While the mom has signed that she’ll use the money for her child’s school needs, there may not be any real checks and balances for that.</p>