My daughter received a federal loan she won’t need to use this semester. Is there any reason she couldn’t use the federal loan to pay towards a higher interest Parent Plus loan we took out for her education to lower interest costs?
It might be better for her to take out her student loan while she still can, and you can then have the school return part of the Parent Plus loan, if you took it out in the past 120 days.
It’s always best to accept the student loan first, interest and origination fees are higher for the Parent Plus loan.
Is there any reason you didn’t do it that way?
Yes, she can take the loan and use it for anything. What you can’t do is combine payments for Parent Plus (your loan) and student loans (her loans) in the future. The combined monthly payment might be more than just the payment on the Plus loan even if the total principal is the same.
The loan money has been given to her? if so, then she can put that towards whatever she wants. if she wants to pay towards the Plus loan, then fine. once the loan money is in her bank account, she can direct it to pay the Plus loan.
Thank you! She already has the loan money. Thanks for your help?
Sorry was supposed to be an exclamation mark not a question mark!