PLUS loan questions

Paying for College
1

<p>Does anyone know how scholarships and other money affects how a PLUS loan works? </p>

<p>For example, lets say I’m looking at tuition, room and board of 30k. Lets say I want to borrow the whole amount in a PLUS loan. So I apply for that TODAY. Then, a month from now, my child gets a wonderful 5k scholarship. Do I have to repay the 5k in loan immediately? Does it go as a credit towards the next semester/years tuition? Can I use the difference to pay for other expenses like travel or spending money during a semester abroad? </p>

<p>I guess I’m a little confused on two points: 1) what is considered in the ‘cost of attendance’ and 2) how outside scholarships affect loans. </p>

<p>I recall when I went back to school as an adult, I borrowed the total cost of the program and also additional money to cover other related expenses, and I’m wondering if the PLUS loans work the same way. </p>

<p>I’ve done a little searching but I’m not putting my fingers on it right away.</p>

2

<p>jude,</p>

<p>If the total of the Parent PLUS loan and the outside scholarships exceed the total cost of attendance, funding will have to be reduced. Typically, that means the school would return some of the PLUS loan funds to the lender, even if the funds have already been disbursed.</p>

<p>Nichole</p>