What happens if I drop classes or withdraw after my parents have received Federal Direct PLUS Loan funds?
If your classes were paid for with funds from a Federal Direct PLUS Loan and during the drop period you reduce the number of credit hours below full-time, any refund due from the reduction in your charges may go to repay your loans. The refund would reduce the corresponding loan debt by the refunded amount with funds first going to unsubsidized and subsidized loans and then to Federal Direct PLUS Loans. You may be required to repay the school all or part of the aid you received. If your classes were paid for with funds from a Federal Direct PLUS Loan and then you withdraw from all of your classes, a Return to Title IV Funds calculation will be performed to determine what portion of your financial aid was actually earned. The Department of Education would be notified that you have dropped below half-time or have left school and any pending disbursements would be canceled.
