Refunds are issued to the following:
Student -part or all of the credit balance is created by funds in the student’s name.
Parent PLUS Loan Borrower - The Federal Parent PLUS Loan Program is intended to meet the direct and indirect educational expenses incurred by the student. The Parent PLUS Loan and Columbia scholarships are generally the first financial aid payments applied to the student’s charges, with other aid payments applied after these have been credited. If the additional financial aid results in a credit balance, a refund is issued directly to the student, up to the amount of the financial aid the student is receiving for the term.
If a credit balance still exists after the student has been provided all refunds to which he or she is entitled, we will refund the credit balance from the PLUS loan as follows:
- If the Parent PLUS Loan borrower elects for his or her student to receive the refund, the credit balance will be refunded directly to the student.
- If the Parent PLUS Loan borrower elects to receive the refund, any credit balance resulting from the disbursement of Columbia scholarships and a Parent PLUS loan will be refunded to the parent borrower.
- Credits balances resulting from the disbursement of two or more Parent PLUS Loans from different borrowers will be refunded to both parent borrowers proportionally, based on the amount borrowed for the term. The graphs below illustrate an example of how refunds are issued for multiple borrowers. Refunds are issued to the student when at least one parent borrower authorizes the refund to be released to the student.
- Refunds are issued to the student when at least one parent borrower authorizes refunds released to the student. Upon receipt of this request, all subsequent PLUS loan refunds for the academic year will be issued to the student regardless of subsequent Parent PLUS Loan applications received.
- If the parent borrower(s) want to change to whom the refund is issued (parent/student) after an application has been processed, they must complete a Refund Release Form and change the refund recipient. Refund Release Forms are available by contacting SFS and are processed within 10 business days of receipt. The Refund Release Form must be reviewed and approved by SFS prior to the issuance of a subsequent refund for which the parent borrower is requesting the change.
After Parent PLUS loans are disbursed and refunded (if applicable), any credit balances created from subsequent disbursements of the aid in the student’s name, including but not limited to grants, scholarships, third-party benefits, private loans and Federal Direct Loans, are refunded to the student up to the amount of financial aid the student is receiving for the term.
|Refund Calculation for Multiple Parent Borrowers
|Combined PLUS Loan Amount
|Total Refund of $3,500 Distributed by Borrower based on Percentage Borrowed