If Federal PLUS Loan funds create a FSA credit balance, may the funds be paid to the student instead of the parent borrower?
A. Generally, if Federal PLUS Loan funds create a FSA credit balance, that amount must be paid to the parent borrower. However, a school may obtain written authorization from the parent borrower to pay the credit balance over to the student. Source: Federal Student Aid Handbook, Volume 2-Institutional Eligibility and Participation, p. 2-97; USDE private guidance.
