Parent Direct Plus Loan - What Is Duration of Payment Deferral?

<p>I know that Parent Plus Direct Loans defer payment (though not accrual of interest) while the student is an undergraduate. Are payments also deferred on Parent Plus loans while the student is in grad school if the loan was taken to fund undergraduate expenses?</p>

<p>I think you are confusing Direct Plus loan with Direct Subsidized loan. Direct Plus loan accrues interest during all periods. There is no grace periods for Direct Plus loans.</p>

<p>Direct Subsidized loans are taken by students, not parents. The interest does not accrue and the payments are deferred while the student is in a grad school in the case of Direct Subsidized loans.</p>

<p>I think the OP does know that PLUS accrues interest. But one does not have to pay on PLUS right away. You can defer payment up to 6 months after the student graduates, though the interest continues to accrue. I don’t know if one can continue to defer thosel oans while the student is in grad school.</p>

<p>^^^
Yes, you are right.</p>

<p>Here is the link: [Direct</a> Loans—Parent PLUS Repayment](<a href=“http://www.direct.ed.gov/parentrepay.html]Direct”>http://www.direct.ed.gov/parentrepay.html)</p>

<p>It does not appear that you can defer payments while the student in grad school.</p>

<p>I looked at several links and explanations and they all say that one can defere the payments while the student is in school, but it does not specify or eliminate graduate school on part of the student. </p>

<p>Interesting that a parent can defer payment while s/he (the parent) is in school. I did not know that either.</p>

<p>So it looks like by the end of next semester (fall 2012) I will need to get a Plus loan to pay my sons tuition as the old 529 will be pretty much dried up… I did fill out the master prom. Note some time ago, but it is unclear to me how to actually apply for what I need and when I should do it. Do I contact the college fin aid office? </p>

<p>Thanks for any help and suggestions</p>

<p>Please disregard above post… i meant to start another thread.</p>