PLUS Loan issues

Paying for College
1

<p>Hello,</p>

<p>I’m a single parent who is getting conflicting information about the amount of the PLUS loan I am allowed to receive. In addition to the EFC, I will need to borrow the money for anything my daughter needs for college. </p>

<p>When I originally applied for the loan in April, 2005, the representative from the loan company said it was “absolutely” legitimate to apply for an amount over and above the family contribution amount, in order to buy a lap top, software, virus protection as well as things she’ll need for her room. So, I applied for an additional $1,200 for the laptop, software and virus protection and an additional $500 for books and things she will need for her room, and hopefully some clothes. The loan was approved. This represetative from the loan company said that once the first dispursement was made to the school, I should contact the school to let them know I needed to have $1,700 returned to me for those items. He made it seem like it was a routine thing that is done all the time, no big deal.</p>

<p>Well, for various other reasons I won’t go into, the first dispursement has not been made yet, and as a result I ended up talking with the Asst. Director of FA at my daughter’s college. I’ll call him “Big Al.” This issue of the “extra” money came up, and Big Al made it clear that getting any amount over and above the EFC was indeed a big deal. Now, I understand that the schools need to certify that a loan request is legitimate, so that people aren’t taking advantage of the education loan to finance a new car or summer vacation or pedigreed pooch or whatever. </p>

<p>But talking with Big Al gave me the feeling that I might be the only person who ever needed to do this. And, that the amount I requested to borrow for these items is a bit extraordinary. He asked me what kinds of things she needed for her room - this was AFTER I’d said “Whatever she needs for college, I will have to pay for with a loan.” And, my financial information backs all this up, and since they did give my daughter a very generous financial aid package, I know that he knows I’m not making things up here. I mean, I am very broke. I said “All the things that YOUR school sends out saying they need” - he said, “well, that’s generated out of the housing office.” </p>

<p>He thought that $1,000 for a lap top might be high (although he admitted he wasn’t sure about that) and that he’d need to look into it, and commented that she would have access to some computers on campus, and he made it clear that he might not be willing to certify the extra amount, or if so, maybe not all of it.</p>

<p>I have no problem providing proof that I used the money for college related expenses. But I am a bit frustrated that since what I’m asking for (extra money) is needed (that is, that I don’t have the money otherwise, and that’s not in doubt) and since I’m not asking for an inordinate amount, that he has the right to nickel and dime it with me like this? I mean, I am borrowing the money. The lender approved it. The guarantor signed on. The school’s role, as I understand it, is basically to provide some checks and balances so that people at able to abuse the system and use the loans for other purposes. Am I wrong? Am I the only one who has ever had to do this? </p>

<p>And I do recognize that she could get through college without her own computer, but not without difficulty, particularly because my daughter has a brain malformation that impacts her health and requires her to get enough rest, etc. - </p>

<p>Sorry this is so long - any feedback is welcome, I’m quite upset about all of this and worried about providing the things my daughter needs. And I do recognize that she could get through college without her own computer, but</p>

2

<p>zoom I see this is your first post- so first I will steer you to my fave site for finaid information besides CC</p>

<p><a href=“http://www.finaid.org/loans/parentloan.phtml[/url]”>http://www.finaid.org/loans/parentloan.phtml&lt;/a&gt;&lt;/p&gt;

<p>t*Conflicting information about the amount of the PLUS loan I am allowed to receive. In addition to the EFC, I will need to borrow the money for anything my daughter needs for college.</p>

<p>When I originally applied for the loan in April, 2005, the representative from the loan company said it was “absolutely” legitimate to apply for an amount over and above the family contribution amount, in order to buy a lap top, software, virus protection as well as things she’ll need for her room. So, I applied for an additional $1,200 for the laptop, software and virus protection and an additional $500 for books and things she will need for her room, and hopefully some clothes. The loan was approved. This represetative from the loan company said that once the first dispursement was made to the school, I should contact the school to let them know I needed to have $1,700 returned to me for those items. He made it seem like it was a routine thing that is done all the time, no big deal.*</p>

<p>Well I don’t know which company you are working with- but my understanding that if it is for beyond EFC and what ever tuition loans you have- it is a personal loan, not an education loan.
Her best bet was probably to buy the computer etc through her schools computer office or a refurbished or used computer.
My daughters school even has loaners of older laptops for students use- I understand her need for a computer ( assuming this need is written into her 504 plan?) but there are work arounds.</p>

<p>But talking with Big Al gave me the feeling that I might be the only person who ever needed to do this. And, that the amount I requested to borrow for these items is a bit extraordinary. He asked me what kinds of things she needed for her room - this was AFTER I’d said “Whatever she needs for college, I will have to pay for with a loan.” And, my financial information backs all this up, and since they did give my daughter a very generous financial aid package, I know that he knows I’m not making things up here. I mean, I am very broke. I said “All the things that YOUR school sends out saying they need” - he said, “well, that’s generated out of the housing office.”
I understand having to borrow the EFC- we have to do for part of it as well- however personal items aren’t directly for education, and do come with a higher interest rate.</p>

<p>Since summer is half over I don’t imagine that it will be easy to find work, but I assume there is a portion that your daughter is already contributing through her summer job and education loans?</p>

<p>Ok I just found this info and it looks like that your daughter can use the PLUS loan to buy a computer.

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3

<p>You need to speak with the financial aid office at your daughter’s school. There apparently is a budget they operate by and the approved loan amount is in place. You may need to notify the office, make a letter of request detailing what your purchase needs are and the school will then approve the amount over budget and the loan can be disbursed. Have you asked the school aid officer about the budget???</p>

4

<p>Emeraldkity4 - Thanks for directing me to the site, that was helpful.</p>

5

<p>Thanks, but if you read the original post, you would see that indeed I HAVE spoken to the financial aid office at my daughter’s school. That’s pretty much where the problem is! Thanks anyway.</p>

6

<p>I think the estimated expenses are very reasonable. It irks me that the financial aid rep seems to be treating you like a second class citizen and insinuating that you are trying to bilk the system. Reminds me of growing up. My mom had 5 kids and a $9,000 income, so some bills were juggled. I remember the lady from the electric company telling her, “People like you should burn candles.” Just petty bureaucrats feeling their own importance.</p>

7

<p>Thanks for observing that the amounts seem reasonable, I think so too but after getting “the tone” from “Big Al” I started to doubt myself.</p>

<p>I have heard (directly and indirectly) of comments like “people like you should just burn candles.” But that’s one of the worst ones I’ve heard. I can’t help hoping that woman is trying to stretch her retirement dollars and finding it difficult to pay the electric bill. Anyway, thanks again.</p>

8

<p>use the plus loan to buy a computer…I know students who have done this. I know of a case where the mother had to submit a request in writing, with the exact dollar amounts: computer, extended warranty, software, messenger bag…ordered using a finance plan which a family member helped to accomplish and then…the school would approve the amount. The computer was then paid off without finance charges when the plus loan was dispersed. This was a state school and everything for the mother/student was a giant hassle through the financial aid office.</p>

9

<p>well but you still have to pay back the plus loan
My daughter bought an apple computer through apple education and paid it off in 6 months! but now she has a credit record without having to get a credit card. We had no idea that we could have gotten a Plus loan to pay for it- but it worked out the way she did it.</p>

10

<p>Do ALL plus loans begin payback 6 months following dispersement???</p>

11

<p>We are paying back our plus loans from years 1- 2 & 3 now. I believe we could possibly defer it until D graduates but as interest accrues, there wasn’t really any point in putting it off.</p>

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