personal finances
I applied for a ParentPlus loan for my son's college tuition. I was approved and my son was able to use this for his tuition payment. First question. How was I able to be approved for this loan when I cannot even get a credit card from Kohl's? Next question. They sent me a check for half of the loan as a "parent refund", can I just apply that directly to the loan balance or is it better to save it for next year tuition? I always respect your honest and direct responses. Thank you.
Terry Says
OK, I'm assuming that you applied for and received a Direct Plus Loan (for parents) from the Federal government. In answer to your first question, the Federal government is less "picky" about granting credit than Kohls! Of course, they did review your credit before granting the loan. And they have more ways than Kohl's of collecting -- including garnishing your tax refund. I'm sure you know that you and you alone are completely responsible for paying this debt! These PLUS loans -- annual loans -- are paid directly to the school for the current semesters tuition and fees. Any excess is sent to the parent. Don't spend it! You son will need it for the next semester. Here is a link to absolutely everything you must know about PLUS loans.
