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Holy cannoli BM got approved for a PLUS loan!

WokeUpABug's picture

Submitted by WokeUpABug on Thu, 04/28/2016 - 2:28pm

At my suggestion (well at DHs, but it was my idea) BM applied for a PLUS loan for SS19. The rationale was that she would be denied due to recent bankruptcy, and this would make SS19 eligible for larger federal loans (a fun little loophole I found out about via Internet research ).

Anyway the unthinkable happened- she was actually approved, and a loan for the balance (almost $7k) of SS19 tuition has been applied to his account. We don't owe any extra! And the best part is it's completely in her name so won't be a burden for SS19! Doing a happy dance!

I have no idea how this happened, but it is not for me to question why, it is for me to go home and drink all the wine!

Comments

WokeUpABug's picture

Submitted by WokeUpABug on Thu, 04/28/2016 - 2:39pm

Thanks guys! The more I think about it, I doubt she actually wanted to take on such a large loan. She probably assumed, as I did, she would just be rejected. Oh well too late!

luv2luv's picture

Submitted by luv2luv on Thu, 04/28/2016 - 2:45pm

There is no reason SS19 can't learn a lesson and pay for his education even though the loan is in his mother's name. If his parents can afford to pay a portion then he is lucky, if not then he should be learning to pay for himself.

The good part is that neither you nor DH had to do anything with this. I was worried you were going to cave and just let him take on a loan.

WokeUpABug's picture

Submitted by WokeUpABug on Thu, 04/28/2016 - 3:56pm

Oh I think she will. I've never known BM to turn down "free money" which is basically how she sees credit/loans.

The really interesting thing is that per the school website it shows $33k in pending loans. So I'm thinking she was approved for a rather large loan.

lintini's picture

Submitted by lintini on Thu, 04/28/2016 - 4:01pm

Yup...

Cadence's picture

Submitted by Cadence on Thu, 04/28/2016 - 4:16pm

Yay! You did this. Seriously, grab your DH by the shoulders, say "Hey, remember when you tried to accuse me of not caring? I DID THIS. I FOUND A SOLUTION and now your son can stay in his school, BM has to deal with her side of the financial commitments, and we did not go bankrupt. I hope you see that I DID THIS. For you. For SS. For us."

That man better appreciate the hell out of you.

notsobad's picture

Submitted by notsobad on Thu, 04/28/2016 - 5:22pm

I'm wondering about her bankruptcy.
How could she now qualify for a loan, any loan?
How did you find out about it? Maybe she didn't tell the whole truth?

robin333's picture

Submitted by robin333 on Thu, 04/28/2016 - 5:46pm

Very glad for you. I still think he should transfer. It's going to be the same thing next year and sets a standard for the remaining skids.

WokeUpABug's picture

Submitted by WokeUpABug on Thu, 04/28/2016 - 9:51pm

Yes, he probably should transfer but let's be realistic... I maybe could have banged that drum when his tuition was unpaid. But SS19, BM, and even DH were not in favor. I've got no shot now. Better to just stick to my guns the next time there is a shortfall and let BM and SS19 figure it out.

I can see his online financial portal. Right now it shows a parent plus loan being applied against his remaining balance. Oddly it shows the amount of the loan as $33k, which I'm assuming is the max she was approved for? If so, she shouldn't have a hard time paying her share over the next 3 years.

WokeUpABug's picture

Submitted by WokeUpABug on Fri, 04/29/2016 - 9:32am

There was a $6k shortfall for this year - $2k was due to BM not paying what she promised, $4k due to ss19 picking a school that cost more than his parents had agreed to contribute

So they took $6k out of the $33k loan - now SS19 balance reads -26k for the year. I'm sure that will be fixed, but it leads me to believe she was approved for a 33k loan overall. The remainder will basically cover her promised contribution for the next 3 years.

It's insane because there's no way she will pay it back but that is between her and Uncle Sam.