<p>Is anyone borrowing any loan/s? Particularly the PLUS Loan?</p>
<p>I have two loans(for a total of $4,500), but not the PLUS loan.</p>
<p>I think my parents are taking at least one, why?..</p>
<p>are you borrowing any PLUS loan?</p>
<p>The parent plus loan is done through the school.. its interest rate is considerably cheaper than credit cards or other consumer debt...so if it is available it is worth considering. Instead of chargeing textbooks or a computer printer and paying 7-22% interest you borrow at under 5% or whatever the rate is.</p>
<p>i'm more concerned about the repaying part. how's the repaying work? i read something that said as soon as the final disbursement, my parents have to start paying back, which is the next year, while i'm in school. i was hoping i could pay back the PLUS loan after i graduate. what sense would it make to start paying while i'm in school?</p>
<p>There are different payment schemes...some parents will opt to spread part or all of their contribution over a longer period of time instead of paying cash all at once. For example, say your parents wanted to provide you with $3600 for school this year. They might give you $1200 each quarter, or they might borrow $1200 each quarter and then begin to pay the loan back 2 or 3+ hundred dollars a month...either eliminating or reducing the loan each year so that at graduation they might still owe part of the loan or they might have this particular loan paid off.</p>
<p>Student loans work a little differently..usually the student loan does not require a payment until a period of time after graduation. So a student might borrow $4,000 a year for four years and have to pay on a $16000 loan starting a few months after they graduate...loans vary, I am not an expert...as I recall some of my college loans didn't even accrue interest until 6 mths after I graduated...I don't know if that type of loan exists.....you probably would like to avoid any loan that required payment before you graduated or left school....remember if you drop out or go on an extended leave...the loan could come due.</p>
<p>UC Davis is a direct lender so you might want to talk to them about the loans they offer, you probably can't get this type of loan from the college board site. Interest on these loans is usually half the rate of the best credit cards so it is a good deal.</p>