From: Doug Ackley (RDA@andy.lan.ksu.edu)
Date: Wed Jan 08 2003 - 11:37:22 EST
Cheryl,
The management of PLUS loan refunds to Parents is very
cumbersome for us in the "Business Office". First of all, parents
have to designate if they want to proceeds to go to them or if the
proceeds can go to the student. If the proceeds go to the student,
then we apply all aid the same and write a check to the student for
any excess aid over the tuition/fees.
However, if the parents want the proceeds to go to them, then we
have a problem. Parents want all other aid applied to students'
accounts first and then PLUS loan so parent will get a larger
refund. Students complain when this happens because the refund
goes to parent and they don't have money for books, rent, etc.
AND WE ALL KNOW HOW LITTLE COMMUNICATION AND
COOPERATION THERE IS BETWEEN PARENTS AND
STUDENTS NOWDAYS!!
It is a very manual and awkward process to compute the refund
amounts and to whom they should go to.....and I won't even get
into the situations where the parents are divorced and each has
applied for a PLUS loan (ugly).
I have attempted to answer your questions below in CAPS. Please
share any valuable information you may receive outside the
listserv.....thanks.
Date sent: Wed, 08 Jan 2003 11:55:43 -0500
To: bursar-l@virginia.edu
From: Cheryl Goetz <Cheryl.Goetz@unh.edu>
Subject: Refunds of PLUS Loan Proceeds
> The Department of Education does not dictate how we should handle refunds
> related to Parent PLUS Loans. They have told us that it is up to the
> individual school how they handle these refunds, but that the school must
> have a written policy. We are looking at changing our current policy and
> would like to have some input as to how other schools handle these.
>
> 1) Do you always offer PLUS Loan refunds directly to the parent, or directly
> to the student?
WE GIVE THE PARENT THE OPTION.
>
> 2) Do you require permission from the parent to disburse the refund to the
> student?
YES, PARENT MUST DESIGNATE.
>
> 3) Do you require the student's permission to disburse the refund to the
> parent?
NO....THE DECISION IS THE PARENT'S.
> 4) If the PLUS loan is not the only method of payment, what are your
> guidelines to determine if the overpayment is from the PLUS Loan?
IF ALL AID IS FED ON THE SAME DAY, THEN PLUS
LOAN IS APPLIED LAST (STUDENTS WHINE LESS THAN
PARENTS). IF AID IS APPLIED ON SEPARATE DAYS, THEN
CHRONILOGICAL APPLICATION IS COMPUTED.
>
> Thank you.
>
> Cheryl Goetz
> Senior Accountant
> UNH Business Services
> 11 Garrison Avenue
> Durham, NH 03824
> (603) 862-0091
> Cheryl.Goetz@unh.edu
>
R. Douglas Ackley
Assistant Controller for Cashiering and Student Loans
211 Anderson Hall
Kansas State University
Manhattan, KS 66506
(785) 532-1820
email: rda@andy.lan.ksu.edu
FAX: (785) 532-5632
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