The National Directory of Certified Public Accountants

Ask A CPA - College Planning & Financial Aid

Do My Parents Have An Opportunity To Cancel Their College PLUS Loan After They Sign The Promissory Note ?

Yes, your parents will have an opportunity to cancel their loan after they sign the promissory note. Your college must notify your parents in writing whenever it credits your account with your PLUS Loan funds. This notification must be sent to your parents no earlier than 30 days before and no later than 30 days after the college credits your account. Your parents may cancel all or a portion of their loan if they inform your college that they wish to do so within 14 days after the date that your college sends this notice, or by the first day of the payment period, whichever is later. Your college can tell you the first day of your payment period. If your parents receive PLUS Loan funds directly by check, they may refuse the funds by not endorsing the check.

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