What happens if I reject the Parent PLUS Loan?

I am still only up for the Direct Unsubsidized Loan and the Parent PLUS Loan. I have not accepted either. But I’ve heard a lot of bad things about the Parent PLUS Loan and even someone who works at the help desk at my college said that I should tell my parents to decline them. So if my parents reject them, does the school maybe look and see for another way for me to get Financial Aid??

No. The school assumes you have other means of funding and don’t need the aid.

Pretty much. They will not replace it w/real aid & you’ll have to come up with the money up front.

I thought you were the student. Your parents have to take the Plus loan…not you.

The school isn’t going to increase other forms of aid because you…and your parents choose not to take out a loan.

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So if my parents reject them, does the school maybe look and see for another way for me to get Financial Aid?


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No. Otherwise all would reject the loans and then the FA offices would be overwhelmed…and they really don’t have another way for you to get FA.

If your parents reject the loans, then they’re essentially saying that they don’t need them…or they have another option.

Referencing your prior threads, if your tuition is covered by your scholarships then you still have about $10,500 left to pay for room and board ($13,000 -$2,500 stipend). If you take both sub and unsub for total $5,500 do your parents have the money to pay the remaining $5,000 or $2,500 per semester?

If they don’t, then it might be helpful to accept student and Parent Plus loans in the amounts you need for now.

As far as I know the school can cancel and return the loans within 120 days, is that correct, @kelsmom?

You might want to discuss this with your school’s FA office for best plan of action. By what date do these loans have to be accepted by and MPN and such signed?

Did you hear more about how much your scholarship covers exactly? I know they said up to tuition amount.

But did you register for classes yet, know how much your fees are, etc?

If your parents do take out the Parent Plus, they might want you to work next summer to pay back some of this money, are you working now to save up some money for books, supplies?

You can adjust the loans any time during the summer, because the loans cannot be released (disbursed) more than 10 days before the start of the semester. It’s easiest if you make the adjustments to the loan before it is ever disbursed. That way, nothing was ever paid out & nothing has to be returned. If you don’t get an adjustment request processed in time, the loan funds can be returned by the school or by the borrower within 120 days. I think it’s best to have the school return the funds, because it allows the student to re-borrow those funds later, if necessary.

Okay, great everyone, thank you so much! I’m dumber than a bag of rocks when it comes to this stuff.

@thumper1 Haha, yes I am the student! I am just trying to be responsible about the finances here. It can be so overwhelming. @-)

Don’t ever hesitate to call your school’s financial aid office. Some aid offices give excellent advice (says the woman who has spent all morning helping her grad students figure out how all of this financial aid stuff works!).