<p>My son has the opportunity to study abroad for a month this summer. It is not through his University, although I believe the credits will transfer. We are looking to take out a loan to pay for this. Can we use a PLUS loan? Or a Stafford loan?</p>
<p>Has he borrowed the Stafford for the 2012-2013 academic year? If not, he may be able to do so now so that he can use that money toward current year expenses. With a bit of moving money on paper from column A to column B, he could end up with the value of the Stafford left over for the summer.</p>
<p>If he is not expecting to borrow the Stafford for next year, he could plan to do that, freeing up an equivalent amount from your family budget to pay for the summer expenses.</p>
<p>As for using PLUS for the summer, I would suggest you ask his current Fin Aid office. They have heard this question before.</p>
<p>I spoke with the study abroad office and financial aid office at his university. They both said that because it is not study abroad through the university he cannot apply his financial aid. They also said it is not considered the 2013-2014 cycle, so we can’t apply for a new stafford loan (already used stafford for 2012-2013). There doesn’t seem to be many options.</p>
<p>Talk to the school sponsoring the program and see what options they can come up with for you. Your school is not going to be as interested in figuring out how to make this work as it is not something they would be familiar with so they would have to do a lot of leg/phone/finger work and there is nothing in it for them.</p>
<p>Right now he wants to participate in this summer program. However, if he already is on schedule to max out his Stafford loans over the four years of college, and if the only way your family can cover it is by borrowing money, it is possible that the program is an unaffordable luxury right now.</p>
<p>If he were to spend the summer working and saving, how close will he come to having the money for this study abroad program (or an equivalent one) next year? Does his college offer the option of a winter term during which he could participate in a similar program? Think through those options as well.</p>
<p>He needs to take 2 classes over the summer to graduate. This study abroad takes care of that requirement. If he doesn’t do this now, he likely would never do it. This is a huge opportunity that will enhance his resume tremendously.
We will just pay for it now. I was looking for a short term loan option to float the cost over the next 6 months, because of current financial obligations, but if push comes to shove, I can probably just pay it now.</p>
<p>If you have not borrowed or gotten scholarships/grants/workstudy awards over your official COA for this school year, you can apply for PLUS right now and get the funds which will go to your student’s account and if there is nothing owed to the school can be sent as a check to you. You can then repay the amount over 6 months or whatever. The interest rate is about 8% and there is also a fee. But, yes, you can do it if there is room in the COA for such a loan. If you are turned down, your son can get $4K more in Staffords at 7%, again if you have not gotten funds up to COA already.</p>
<p>I’m going to try the plus loan route. Thanks</p>