<p>Hey, I was offered a PLUS loan on my fin. award letter and I need some more info on it. When do we have to repay it back. According to finaid.org:</p>
<p>"Repayment begins 60 days after the funds are fully disbursed, and the repayment term is up to 10 years. There is no grace period as there is with the Stafford Loan program. Some lenders allow parents to defer payment on the PLUS Loan while the student is enrolled in school by capitalizing the interest. Interest is capitalized no more frequently than quarterly."</p>
<p>So for example, if I was offered 3,000 in the PLUS loan, and I take the 3,000 out, I have to start paying it back while I am in college?</p>
<p>PLUS loans are made to the parents- and generally the parents do begin to pay the loan back after the 2nd disbursement
but really- I wouldn't consider a PLUS loan to be part of financial aid-
it can come in handy- but they aren't doing you any favors</p>
<p>Ignore any kind of loan that you have to pay back while you are in college, if you can! </p>
<p>And, if you need to take out a loan, make sure that it is a reasonable amount. Know your limits, make sure you can pay it back before the interests start kicking in.</p>
<p>thanks guys, so i shouldn't take out the PLUS loan? cuz i think i could just find a job and make that 3,000. Do you guys have any info on the Fed. Direct Loan. The repayment of that loan can be deferred while I am in college right?</p>
<p>Parents take out the Plus loan...not students. There are many other loan options for parents to consider. I will say that I know families who used the Plus Loans for their college kiddos. However, I know many more families who decided to go the home equity route. The Stafford Loans (and Perkins too, I believe) are not paid back until you graduate. Subsidized Stafford loans do NOT accrue interest while you are in school. Unsubs do.</p>