<p>Was wondering if anyone has any experiance with this type of loan and how it works?</p>
<p>I didn’t defer but thought about doing it a few years ago. You can defer payment but it would be foolish not to pay interest in the interim to keep the amount down. For some, they will be on better standing in a year or 4 years, for some they will have less children in school, but whatever reason you do it, remember that interest will add up and your monthly payments might be effecte by that later.</p>
<p>On a FA site, it said if the parent in unemployed, interest might also be deferred:</p>
<p>PLUS deferment options are based on the parent borrower’s eligibility – for example, if the parent is unemployed, not the student on whose behalf the parent took out the loan. Principal and interest payments may be deferred while the parent borrower is: </p>
<p>•Attending school at least halftime.
•Unemployed (up to three years).
•Studying in an approved graduate fellowship or rehabilitation program for the disabled.
•Experiencing economic hardship (up to three years</p>
<p><a href=“http://www.direct.ed.gov/parentrepay.html[/url]”>http://www.direct.ed.gov/parentrepay.html</a></p>
<p>For cash flow timing reasons, my husband and I are using deferred PLUS loans to assist with our daughter’s tuition bills.</p>
<p>Because of the nature of his income and maturity of some of our investments, we end up with ‘chunks’ of cash available to make big payments, so we requested that the PLUS loan be in deferment until our daughter’s scheduled graduation. This means we have no ‘regular’ monthly payment to make.</p>
<p>But…we send large chunks of cash as it becomes available to pay it down, and keeps the interest to a minimum.</p>
<p>Its not a method that will work for everyone, but its made the most sense for us.</p>