<p>As the thread title says, is the federal plus loan bad? Where do I sign up for it? The interest rate is so high, and there is no grace period and I have to start paying as soon as the money starts coming in. Isn't that pretty bad? Also, it says on my college financial aid paper that I qualify for perkins loan. Where do I sign up for the perkin's loan?</p>
<p>You get the Perkins loan through your college - you need to talk to the financial aid office about how to do the paperwork.</p>
<p>The PLUS loan is for parents, not students. If your parents want a loan, that’s a good one to try.</p>
<p>so how do my parents pay back the federal plus loan? when do they start paying it back?</p>
<p>If I remember correctly, your parents must start paying back the PLUS loan about 90 days after disbursement</p>
<p>I think there is a new ruling for a grace period on the parent Plus loan, it as posted on another thread. You can either start 60 days after disbursement or 6 months after your student graduates. I will post the the site here. BTW the parents plus loan is an excellent option. Credit hx is marginal.</p>
<p><a href=“https://ifap.ed.gov/dpcletters/061908GEN0808.html[/url]”>https://ifap.ed.gov/dpcletters/061908GEN0808.html</a></p>
<p>Grace Period for Parent PLUS Loan Borrowers HEA section 428B(d) </p>
<p>For PLUS loans made to parents that are first disbursed on or after July 1, 2008, the ECASLA provides the borrower the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or not until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled on at least a half-time basis.</p>
<p>For PLUS loans that are first disbursed on or after July 1, 2008, the HEA now requires that the interest that accrues on the loan from the date of the first disbursement until 60 days after the loan is fully disbursed be capitalized for parent PLUS borrowers who do not elect to delay repayment on the loan based on the dependent’s enrollment status, and for all graduate and professional student PLUS borrowers. Lenders must notify borrowers of the capitalization and provide them the opportunity to pay the capitalized amount of accrued interest.</p>
<p>For parent PLUS borrowers who opt to delay repayment on a PLUS loan until six months after the dependent student for whom they borrowed ceases at least half-time enrollment, the interest that accrues on the loan prior to the delayed repayment start date may be paid, at the option of the borrower, either monthly or quarterly, or may be capitalized no more frequently than quarterly.</p>
<p>For interest that accrues on PLUS loans during an authorized deferment period, the borrower may choose to pay the interest either monthly or quarterly, or have it capitalized no more frequently than quarterly.</p>
<p>The way most of us assess financial aid is that Perkins, Stafford loans are considered aid for students. The PLUS loan is for parents to help them meet their EFC. There are colleges that throw in the PLUS loan as part of the aid package but that is not considered usual.</p>