FAFSA Parent Plus loan excess funds - where do they go and how much to request?
So I'm a first-time Parent Plus loan borrower for my daughter's sophomore year (didn't need it for freshman year but tuition went up 8%). I'm trying to figure out how much to request on the Parent Plus application. Her total cost after scholarships is about $18,400, but I'm wondering if I should request more to cover books and living expenses? If I request too much, what happens to the extra money? Does it get refunded to me or to my daughter? And is there a recommended amount to request over the direct costs? Don't want to borrow too much, but also don't want her calling me mid-semester broke.
24 comments
Join the conversation
Zara Mirza
Any excess funds from a Parent Plus loan get refunded to either you or your student, depending on what you select on the loan application. When I took out a Parent Plus loan last year, I opted for excess funds to go to my son's student account, which gave him a refund check he could use for books and living expenses. As for how much to request, I'd suggest calculating all anticipated expenses beyond tuition - books ($600-800/semester), housing costs if applicable, meal plan gaps, transportation, etc. Add about 10-15% buffer for unexpected expenses. Just remember you're paying interest on every dollar, so don't go overboard!
0 coins
Sean Flanagan
•Thank you! I didn't realize there was an option on the application to choose where excess funds go. That's really helpful. Do you know if you can change that choice after submitting the application? I'm thinking I might want the funds to come to me so I can distribute as needed.
0 coins
NebulaNinja
be careful borrowing extra. the interest on those parent plus loans is crazy high right now! my wife and I borrowed $5k extra last year thinking our son would need it and now were paying interest on money we didnt even use lol. once it goes to the school any leftover gets refunded in a check, usually a few weeks after classes start
0 coins
Luca Russo
•YES! Parent Plus interest rates are terrible!! The 2025-2026 rate is like 8.05% - basically a credit card! We always borrow EXACTLY what we need and nothing more.
0 coins
Nia Wilson
The Parent Plus loan excess funds distribution process works like this: 1. The full loan amount goes directly to the school first 2. The school applies it to all outstanding charges on your daughter's account 3. Any excess is refunded based on your preference on the loan application (to parent or student) 4. Refunds typically process 2-3 weeks after disbursement Regarding how much extra to request - I always calculate a precise budget. For the average student, plan about $1,200/year for books, $800-1,000/semester for miscellaneous expenses, plus any specific costs like off-campus housing, meal plans, transportation, etc. Some parents prefer to cover only the direct school charges with Parent Plus and handle other expenses separately through savings or monthly support. This approach minimizes the loan amount and resulting interest. Remember you can always apply for additional Parent Plus mid-year if needed, though it requires going through the application process again.
0 coins
Sean Flanagan
•This is incredibly helpful! I didn't realize I could apply for additional funds mid-year if needed. That makes me feel better about being more conservative initially. I think I'll add about $2,500 to cover books and some expenses, and then we can reassess in January if she needs more.
0 coins
Mateo Sanchez
OMG why would you take out a Parent Plus loan?! Those are literally the WORST financial aid option with the highest interest rates! Your daughter should max out subsidized and unsubsidized federal loans in her name first, then look at private loan options. Parent Plus should be absolute last resort!!!!
0 coins
Sean Flanagan
•She already maxed out her federal loans ($5,500 last year and $6,500 this year), and we're trying to avoid private loans because the variable rates seem risky. Plus I have excellent credit, so I qualified for the Parent Plus without any issues. I'm planning to help her pay it off quickly after graduation.
0 coins
Nia Wilson
•While Parent Plus loans do have higher interest rates than Direct Student Loans, they often have better terms than private loans, especially for families with good credit. For the 2025-2026 year, the fixed interest rate of 8.05% on Parent Plus is high, but it comes with federal protections that private loans don't offer. Each family's situation is different, so what works for one may not work for another.
0 coins
Heather Armstrong
•@Sean Flanagan If you have good credit, you may get a better rate with a private loan. Plus loans don t'even look at your credit score to determine the rate, they only look for adverse credit history and I believe that is reflected in the rate offered. Private education loans also offer fixed interest rates. You may not realize it, but parent plus loans have a 4.228% federal fee in addition to interest that you should take into consideration. Private loans generally don t'have fees involved.
0 coins
Aisha Mahmood
FYI - If you're trying to reach someone at Federal Student Aid to discuss your specific Parent Plus loan situation, I'd recommend using Claimyr (claimyr.com). I spent literally DAYS trying to get through to FSA about my Parent Plus questions and kept getting disconnected, but Claimyr got me through in about 15 minutes. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ It was worth it to actually talk to someone who could explain my options for both the amount to borrow and where excess funds would go. The agent walked me through the entire process.
0 coins
NebulaNinja
•does this actually work? i tried calling fsa like 10 times about my daughters parent plus and kept getting hung up on after waiting forever
0 coins
Aisha Mahmood
•Yes, it really worked for me! I was super skeptical too, but after waiting on hold for 3+ hours across multiple days and getting disconnected every time, I was desperate. The Claimyr service connected me to an actual FSA agent who answered all my Parent Plus questions within about 15 minutes of using their service.
0 coins
Ethan Clark
When my son started college in 2023, I made the mistake of borrowing EXACTLY what we needed for tuition and housing through Parent Plus. Then mid-semester, his laptop died ($1200 to replace), he needed unexpected dental work ($800 after insurance), and books were WAY more than expected ($650 just for ONE engineering textbook and access code!). Lesson learned: life happens. After that nightmare first semester, I now borrow about $3000 extra per year as buffer. Any unused funds go straight to principal repayment before interest accrues.
0 coins
Sean Flanagan
•Oh wow, I hadn't even thought about emergency expenses like computer replacement or medical costs. That's a really good point. I think I'm going to request enough to cover tuition plus about $3,500 extra to create that buffer. Better safe than sorry!
0 coins
Luca Russo
Just want to point out something important that nobody mentioned yet - Parent Plus loans have an origination fee (about 4.2% for 2025-26)! So if you need $20,000 to actually reach your student's account, you need to borrow about $20,870 to cover that fee. Don't forget to factor this in when calculating how much to request!
0 coins
Zara Mirza
•This is such an important point! I forgot about that origination fee the first time I applied for a Parent Plus loan and was shocked when the amount that hit my son's account was less than I expected. Definitely factor this in!
0 coins
Sean Flanagan
•Thank you!! I had no idea about the origination fee. So basically I need to request about 4.2% more than what I actually want to receive? That's really helpful information.
0 coins
AstroAce
My daughter's university financial aid office actually recommended requesting exactly the Cost of Attendance (COA) minus any other aid received. The COA already includes estimates for books, supplies, personal expenses, etc. You can find the official COA on your school's financial aid website. This prevents overborrowing while ensuring all legitimate educational expenses are covered.
0 coins
Sean Flanagan
•That makes a lot of sense. I just checked and her school's COA is $32,600, which includes about $2,800 for books/supplies and $3,400 for miscellaneous personal expenses. Her scholarships and direct loans total $14,200, so maybe I should request around $18,400? That seems more reasonable than just guessing.
0 coins
AstroAce
•Exactly! The COA is carefully calculated by the school to represent a realistic budget. Just be aware that some schools inflate their miscellaneous/personal expense categories, so you might want to look at the breakdown and decide if you need the full amount.
0 coins
Mateo Sanchez
when i got parent plus loans for my twins the extra money went to THEM not me even tho i checked the box for it to come to me!!!! the school said once the money hits their student accounts its legally theirs or something. now im paying interest on money they spent on who knows what 🤬
0 coins
Nia Wilson
•This sounds unusual. By federal regulation, Parent Plus loan refunds should go to the parent unless the parent specifically authorizes the refund to go to the student. I'd suggest contacting the Federal Student Aid office to discuss this situation, as the school may have made an error in their refund processing.
0 coins
Zara Malik
As a newcomer to Parent Plus loans, I'm finding this thread incredibly helpful! I'm in a similar situation with my daughter's college costs. One question I haven't seen addressed - if I request excess funds and they go to my daughter's student account, does she have any restrictions on how she can use that money? Like, does the school monitor if it's actually used for educational expenses, or once it's refunded to her is it basically unrestricted? I want to make sure I understand the full picture before deciding how much to request and where the excess should go.
0 coins