Fed Financial

Do I have to take out loans I accepted on my financial aid offer?

I filled out my financial aid offer in March. I accepted the federal direct unsubsidized student loan and the Parent Plus loan for the full amount, because that was the only way I had to pay. Now I have received some scholarships and I don't know if I am required to take out the full amount of the Plus loan of if I can forget about it(what I would like to do). I haven't filled out the promissary note yet, and I haven't done the bank application. Can I get out of the Plus loan?

Public Comments

1. Yes, just don't sign the paperwork. It would be nice to let them know though, they did you a favor by setting up the loan weather you need it or not.
2. Be careful with Parent Plus loans. I have one (I graduated in 2001) and my parents want me to pay it. It causes a few problems with paying back and writing checks and who has authorization over the loans, so get that worked out years before you have to pay back. To reduce the amount of interst on the loans, let them know about the scholarships. They can then reduce the principle balance that they are offering you and then you'll have less to pay back.