Me and my parents are confused in the financial aid, If my parents do the direct plus loan, when will they have to pay it back?
Yes, all loans have to be paid back.
When? Do my parents have to pay back the loan while I’m in school?
For the PLUS, I believe your parents can defer the payment until youngraduate. But the interest starts to accrue immediately upon disbursal.
You need to check yourself.
But free advice…look carefully at you college choice. If it requires a large Plus loan by your parents…maybe it’s not an affordable choice.
Ask the school’s financial aid department, but I believe Parent Plus loans accrue interest right away and payments start right away, unless a deferment is requested (interest will continue to accrue).
Are you already taking full direct student loans?
How much are you borrowing? Your other threads indicate that you’re a freshman studying economics at a public university in TX. The cost of attendance is ~$18k for state residents but you said that your parents have bad credit and can’t help you much.
Based on your previous posts, your aid package includes the following:
- Grants (Pell and TX state grant): $6500/year
- Student Loans: $5500/year
- PLUS Loans: $6k/year
Total student loans over 4 years (+ interest) = $37k
Total PLUS loans over 4 years (+ interest) = $35k
TOTAL DEBT: $72k
That’s an awful lot of money for a 4 year degree.
If you need to take out large amounts of plus loans, the school isn’t affordable!