The Federal Direct PLUS loan allows a parent to borrow money for the educational expenses of a child who is a dependent undergraduate student enrolled at least half-time.
Parent PLUS loans may create a credit on a student account. The credit can be refunded to the student or the parent. The parent makes the selection on the PLUS loan application. Refunds to the parent are refunded in the form of a check and mailed to the parent address on the loan application. If the parent indicates the refund of the PLUS loan go to the student, the refund will either be issued as an electronic refund to the student, or if no refund account is set up, mailed to the student’s local address.