Parent PLUS loan question

[BillyDiamond]

Hi there, Our financial aid office is asking me to confirm with the Navy that the PLUS loan I'm taking out is eligible for reimbursement once the NROTC scholarship posts, just like the stafford loan in student's own name will. Since I have been trying not to interfere in the whole process, I don't even know to whom I would direct this question. Does anyone here know who to contact about financial issues related to the scholarship program? It isn't a school specific question (which is why the school is asking me to track down the official policy directive) so I don't want to go right to the unit, especially when they're moving people in and starting their program right now. Thanks for any help!

 

[IronmanDaremo]

I'll let GWU PNS chime in, but as far as I know, the NROTC scholarship (if awarded already, and just not started) should be in the system for the school where the student has been accepted and will be attending. As such, the school should hold a lien against that scholarship for tuition payments and only request payment for outstanding things that would not be covered - typically room and board. You and the student will need to cover all non-tuition expenses. I do not know if that is what the loan would be for or not?

If you are trying to forecast a possible award for someone who does not have the scholarship yet, there is no retroactive activity to payback the previous semester/year that of which I am aware. As a walk-on college programmer last year, my son was told (incorrectly) that if he was awarded the 4-year national scholarship, they would reimburse his Freshman year after the fact. That was not the case. It would have kicked in basically as a 3-year to cover the sophomore through senior years. (All moot though as he received an Academy appointment).

As for who to acutally ask? I would say that contacting the unit WOULD be appropriate. They will either have an answer, or direct you to someone at NSTC (Naval Training Command) to help.

 

[BillyDiamond]

I'll let GWU PNS chime in, but as far as I know, the NROTC scholarship (if awarded already, and just not started) should be in the system for the school where the student has been accepted and will be attending. As such, the school should hold a lien against that scholarship for tuition payments and only request payment for outstanding things that would not be covered - typically room and board. You and the student will need to cover all non-tuition expenses. I do not know if that is what the loan would be for or not?

If you are trying to forecast a possible award for someone who does not have the scholarship yet, there is no retroactive activity to payback the previous semester/year that of which I am aware. As a walk-on college programmer last year, my son was told (incorrectly) that if he was awarded the 4-year national scholarship, they would reimburse his Freshman year after the fact. That was not the case. It would have kicked in basically as a 3-year to cover the sophomore through senior years. (All moot though as he received an Academy appointment).

As for who to acutally ask? I would say that contacting the unit WOULD be appropriate. They will either have an answer, or direct you to someone at NSTC (Naval Training Command) to help.

Thank you! I will contact the unit. Just by way of background, he has been awarded the 4 year and the school matches with room and board but not until the scholarship posts (which they say is usually by the end of the first semester but not always). And of course, the bill was due so they cover the gap with loans (and aid) which in theory gets reimbursed, but they sent me an alert that the student is reimbursed for their stafford loan but they weren't sure if parents are reimbursed for the PLUS already incurred. I don't want to assume it goes all to the student account and then the balance can be returned to me for the PLUS, but I also thought maybe the financial aid office would already know this so it raised concern when they said I should double check!

 

[Boymomof3]

Congratulations to your DS! At our state University, DS added me as an authorized payer (so nice of him ), I then added I my checking account as the account any over payment comes back to. I had a similar question & I spoke w/ the school financial aid office. “ *If* we had to take loans out to fill the gap, could the loans be paid back early without penalty?” I think that might the question to ask? They were quite knowledgeable regarding the loans.

 

[BillyDiamond]

Congratulations to your DS! At our state University, DS added me as an authorized payer (so nice of him ), I then added I my checking account as the account any over payment comes back to. I had a similar question & I spoke w/ the school financial aid office. “ *If* we had to take loans out to fill the gap, could the loans be paid back early without penalty?” I think that might the question to ask? They were quite knowledgeable regarding the loans.

Thanks! I appreciate everyone's help, encouragement, and willingness to share personal experience!

 

[IronmanDaremo]

Yeah, we didn't take any loans on the belief that if our son got the 4-year as a Freshman, they would reimburse the first year (which was not a true statement in the end - a misunderstanding of the unit as it had recently changed over a lot of command). He did get one, but not waivered for medical until almost the end of the school year, at which point he also got his Academy appointment. So, he declined the scholarship, and I've got almost $20k sitting on a credit card. Ugh!

(But, a $20k investment on my part that will net a $400k education. Without his CO's NROTC nomination/recommendation, he would literally not have gotten in the Academy. So, well worth it in my book).

 

[MohawkArmyROTC]

If he has been awarded the scholarship, the school should give him a tuition payment deferment until the scholarship posts, as the expectation is that everything will be covered. That is what our schools do for Army ROTC. He shouldn't have to take out a loan in the interim until the Navy pays the scholarship. They can always adjust the account if your son doesn't contract and receive the scholarship.

 

[gooseblitz]

My experience so far is similar deferment of the due bill from School. DS is a incoming MS1. We leave for San Diego with him tomorrow.
Tuition due date is today. They (admissions/financial aid) know he is AROTC cadet and are holding on his bill. I am very fortunate his University is extremely accessible on all fronts when it comes to actual human customer service. I have made a bunch of calls and documented with emails. DS has 2 large scholarships from University and 2 private. Once he contracts ROTC will hit account and school will shift University/Private Scholarships to cover room and board and refund the excess back to themselves. School actually walked me through adding his books to his account (not my credit card) since he will get reimbursement later in semester from ROTC. They also allowed me to add $1500 in dining dollars before they take back his excess in case he need late in semester since so I don't have unforeseen out of pocket. Their rational was he earned these scholarships and should reap the benefit.

 

[TBVADAD]

My experience so far is similar deferment of the due bill from School. DS is a incoming MS1. We leave for San Diego with him tomorrow.
Tuition due date is today. They (admissions/financial aid) know he is AROTC cadet and are holding on his bill. I am very fortunate his University is extremely accessible on all fronts when it comes to actual human customer service. I have made a bunch of calls and documented with emails. DS has 2 large scholarships from University and 2 private. Once he contracts ROTC will hit account and school will shift University/Private Scholarships to cover room and board and refund the excess back to themselves. School actually walked me through adding his books to his account (not my credit card) since he will get reimbursement later in semester from ROTC. They also allowed me to add $1500 in dining dollars before they take back his excess in case he need late in semester since so I don't have unforeseen out of pocket. Their rational was he earned these scholarships and should reap the benefit.

We have been fortune as well. Probably more standard for some places. DS tuition was due Monday, but the school gave him a code to avoid late fees and wait for it to be paid.

As the admissions counselor told me last year. We know its going to be paid. The last thing we want is to create a bad situation for the student and the family.