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Refunds - Parent Plus

Overpayment refunds are not released until about the 3rd week of the term or just after the conclusion of a summer or winter sessions Add/Drop period, and only once the account is actually overpaid with disbursed funds.  Please plan accordingly for expenses, such as books, at the beginning of the term or session.

What is a Parent PLUS Loan?

Parent PLUS Loans are loans a parent can take that are used to help pay a student's expenses at Kutztown University.  These loans are applied for at www.studentloans.gov by the parent.  The parent upon approval would need to sign a Master Promissory Note (MPN) with their FSA ID (not the student's).  The loan repayment is the responsibility of the parent. The student must be meeting Satisfactory Academic Progress and Financial Aid Progress to receive these loans. They follow the same eligibility as the Stafford Loans.

Who gets refunds on the students account?

When a students account is overpaid, a refund is issued (no sooner than three {3} days after the conclusion of drop/add).  If the overpayment is caused by:

  • Aid in the student's name, the refund is released to the student (following the BankMobile refund program and preferences). 
  • Aid in the parent's name, the Parent Plus loan for example or the NJ Class Parent loan - the refund must go to the parent who took the loan.  Parent refunds are currently only issued as a paper check, and mailed to the parent's address on the loan.

A parent DOES indicate on the Parent PLUS application under Parent Borrowers on www.studentloans.gov to whom any overpayments/refunds should be issued to (themselves or the student) if the refund is due to the PLUS loan itself.  That selection will be processed by Financial Aid and entered into the system to refund accordingly.  *If a parent moves and expects a refund, they may want to contact Financial Aid to verify the address is correct.

Remember, regardless of who the parent designates on the application, ultimately the overpayments is always issued to the holder of the aid that overpays the account.  If the PLUS loan applies first and the Stafford Loans overpay the account - the refund goes to the students.  If the STAFFORD loans apply first and the PLUS loan overpays the account - the refund goes to the parent.  There are instances where both parties could receive refunds as well.  We cannot request one process before the other, nor can the student or parent.

Can I give permission to have a Parent PLUS refund released to my son/daughter?

Yes.  A parent has the right to request Kutztown University to release this refund to the student instead if they had already indicated on the PLUS application they wanted the refund to go to them.  This release form must be completed, and returned, prior to the disbursement of the Parent PLUS loan to guarantee the processing of the refund to the student.  If received after the disbursement, but prior to the refund, we will do our best.  Once a refund is processed it cannot be reversed and re-issued.  Submission instructions are on the form.

If there is any doubt about the validity of the signed release form, OSA may request additional proof from the parent such as photo ID.  OSA does have the right to refuse any documents that they feel are not valid and default to processing the refund according to the indication on the PLUS application.

Is there a benefit to refunding the student or parent?

This certainly depends on many factors.  How quickly do you need the funds?  Are they for rent in an off-campus situation?  Is it just reimbursement to yourself for book expenses?  You need to evaluate the needs and urgency on funding.

Remember, parent refunds are paper checks that are are mailed the parent who took the loan, and to their address on the loan application.  Student refunds however, have 3 choices, 2 of which may be more quickly received.  Students have the option of Direct Deposit to a checking or savings account, or they can use the BankMobile VIBE (a FDIC insured bank account) using a declining balance debit card released from BankMobile upon election.  Students of course can also choose a paper check.  Students who have the BankMobile VIBE account can order checks for this account to pay a landlord, etc.

If you are not sure about the best choice for your family and its needs, do feel free to contact us to discuss the options in more depth.  We are glad to help and offer choices!