fa parent plus issues

<p>I am very confused right now because for some reason i thought that parent plus loans can be deferred until i graduate cause i was planning on paying them and not my parents... so is this true that u must start paying the parent plus loan after 6months?? if so i think my parents can handle this years but next year wat will i do. and then is private loans a good idea like sallie mae? if so do i need credit? thank you for response just extremely confused and kind of afraid now</p>

<p>You would probably be in better shape to go get a private loan and have your parents co-sign, rather than the PLUS. The private loans you can defer till after graduation.</p>

<p>the Ensuring Continued Access to Student Loans Act of 2008 (PL 110-227), ECASLA, added the option for parents to defer payments on the Parent PLUS loan while the undergraduate student on whose behalf they borrowed the PLUS loan is in-school and for a six-month grace period after the student graduates or drops below full-time enrollment. This change is effective for Parent PLUS loans first disbursed on or after July 1, 2008. (Payments can also be deferred if the parents are themselves enrolled in college. They will need to submit an application for an in-school deferment.) Note that since the interest on the PLUS loan is not subsidized, it continues to accrue while defered and is capitalized when the loan enters repayment.</p>

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<p>This is from finaid.org. You need to have your parents contact the lender to request the deferment.</p>

<p>ok so would this work then if they deferred the loan till i graduate but pay the interest rate monthly???</p>

<p>i looked for private loans locally no one offered so sallie mae is good?? my parents have extremely good credit and dont mind putting anything up for my education</p>

<p>Your parents don’t have to repay the interest if they defer repayment … but I strongly suggest that they do, if at all possible. The interest rate is pretty high. If the interest is capitalized, the loan will be pretty big by the time repayment rolls around. This advice holds true for unsubsidized Stafford loans, as well.</p>

<p>ok im asking this can i defer the payment but also pay the interest because i think my parents would love to do that at least…</p>

<p>Yes…you can defer the payment and pay the interest.</p>

<p>Yes, you can defer repayment but you can pay the interest now. That is what we are doing. Have your parent contact the lender.</p>

<p>ok thank you for help… and one last this is for the federal parent plus loans correct not some private lender?</p>

<p>Yes…this is for the parent plus loan…see post by Kelsmom above.</p>