Ex-spouse stealing Parent PLUS loan refund meant for daughter's living expenses - who can help?

Unfortunately, this happens more than you'd think. Legally speaking, Parent PLUS loans are made to the parent, not the student. While morally it's absolutely wrong what he did, the federal government considers the parent the borrower and they can technically use the funds however they want. The loan is in his name and he's the one responsible for paying it back.

omg that's terrible! my mom took out a plus loan 4 me too but she always gives me the refund money right away. can't believe a parent would do that to their own kid!

While the Parent PLUS loan is legally in the parent's name, there might still be some options: 1. Have your daughter speak with her school's financial aid office again, explaining the emergency situation. They sometimes have emergency grants or short-term loans for students in crisis. 2. She should document everything - any texts/emails where he promised the refund would go to her expenses, etc. 3. If there was any written agreement about how the funds would be used, you might have legal options to pursue. 4. She should check if she's eligible for any additional federal aid or scholarships that could be processed quickly. 5. As a last resort, she might need to look into private student loans in her own name (though these typically require a co-signer).

The same thing happened to my roommate last year!!! Her dad took out a Parent PLUS loan and then used the money to pay off his credit cards instead of giving it to her for housing. She ended up having to get a second job and borrow money from friends until she could figure something out. The whole system is messed up.

In addition to what others have suggested, your daughter should immediately contact her school's Dean of Students office. They often have emergency funds available specifically for situations like this. Also, she should speak with her professors about her textbook situation - many will provide temporary access to materials or alternative arrangements. For the longer term, she should file the FAFSA for next year as soon as possible in October (for 2025-2026) and consider filing for a dependency override based on this situation. While it's difficult to get approved, documented cases of financial abandonment can sometimes qualify.

When I had a major issue with my Parent PLUS loan last semester, I spent HOURS trying to get through to someone at Federal Student Aid. What finally worked was using Claimyr (claimyr.com) to connect with an agent at FSA. They have a system that holds your place in line and calls you back when an agent is available. Saved me hours of waiting on hold. They have a video showing how it works here: https://youtu.be/TbC8dZQWYNQ The FSA agent I spoke with was able to document the situation and point me toward resources I didn't know existed. They can't force your ex to give the money back, but they can clarify what rules exist around PLUS loans and potentially flag his account if there's evidence of fraud.

THIS IS WHY THE WHOLE SYSTEM IS BROKEN!!! Parents can literally STEAL thousands of dollars from their kids with ZERO consequences!!!! My cousin's dad did the exact same thing - took out $12,000 in PLUS loans and gave her NOTHING. She had to drop out for a semester and move back home. Meanwhile he bought a new TV and went on vacation. The financial aid office basically told her "tough luck" because the money is legally his. THE SYSTEM IS DESIGNED TO SCREW STUDENTS!!!

After reading through the thread, I wanted to add a few more options: 1. Your daughter should check with her school's legal aid office - many universities offer free legal services to students. They might be able to advise on potential small claims court options if there were documented promises about how the money would be used. 2. For immediate help with textbooks, she should look into Open Educational Resources (OER) - many textbooks have free digital versions available. 3. For rent, she might qualify for emergency housing assistance through local community organizations. The financial aid office or student services can often provide referrals. 4. As for future semesters, she should look into becoming an RA (Resident Assistant) which typically provides free housing.

update us on what happens!! i hope ur daughter gets some help with this situation!!

I'm so sorry this happened to your daughter - what a devastating betrayal of trust. While others have given great advice about emergency funds and legal options, I wanted to mention that she should also consider contacting her state's consumer protection agency or attorney general's office. Some states have specific protections for educational loan misuse, especially when there's documented evidence of the intended purpose. Also, if she has any joint accounts or financial ties with her father, she should consider protecting those immediately. Sometimes parents who misuse education funds will also access other shared financial resources. The fact that he's flaunting the boat purchase on social media while his daughter faces homelessness is particularly egregious - make sure she screenshots those posts as potential evidence. I really hope the Dean of Students and financial aid office can provide some emergency relief tomorrow!