Parent Plus loan timeframe

<p>Hoping someone here can de-stress me. This will be my first time applying for a Parent Plus loan. Not here to debate the wisdom of the loan itself - last child - 2 years to go - and we are out of funds. Only available option that I see. I am still waiting for the FA award letter from son's college. They have previously told me to wait for the award letter before applying online for the loan. I imagine the online app is quick, and my credit is fine, so it should be ok, but the bill is due in 6 weeks and I don't have much of a backup plan if something unforeseen goes wrong with the Parent Plus loan. Any thoughts or suggestions? The college recently answered my email saying that the awards letters would be out in mid-June, but this seems late to me. I am literally losing sleep over this - should I be worried or should the Parent Plus loan approval be quick and simple?</p>

<p>Can you set up a monthly payment plan?</p>

<p>Too late for that. I just want to know how quick the Parent Plus loan approval process is and if a parent with good credit has any reason to be cocerned about getting approved.</p>

<p>It’s even quicker and simpler than you think! As long as there are no late payments in the past few years you will qualify. They don’t even care about income. I think I was approved instantly online last year. </p>

<p>The school doesn’t get the funds until a month or so into the semester so it shows as “pending” or something like that on her account. Thankfully I won’t need a Plus loan this year after using them the last two years!</p>

<p>Also, the approval is only valid for, I think, 60 days so you’d have to apply again if you did it now. D’s school told me to wait til mid July the first year. The second year I waited until mid august!</p>

<p>That was helpful, thank you. I am the type of person who likes to do things early, so this waiting is making me a little testy.</p>

<p>So today I called the college and was able to have the FA award read over the phone - and was given the green light to apply for my Parent Plus loan. It was, as glopop11 stated, very quick and simple. Actually - alarmingly so. In just 15 minutes, I was approved for the maximum Plus loan - no income or debt questions - approval was just about instantaneous after clicking submit. A few more minutes, and my master promissory note was submitted as well.</p>

<p>It kind of boggled my mind that there was no place where I was given a future monthly payment estimate. Yes, there are calculators on the site one can go to, but nowhere was I forced to look at any type of loan disclosure showing the amount being borrowed, total cost of credit, etc. No wonder people get in over their heads - it was a very unreal borrowing experience - I did not feel like I was borrowing real money. Very odd.</p>

<p>Did you go through the Loan Counseling? That is actually a feature added fairly recently. When I took out PLUS , FAFSA was not even needed.</p>

<p>When I took out the first loan 14 years ago, I started repayment immediately on a ten year plan. What it did was spread that years payment over 10 years. The next year, I took out the same amount which doubled my monthly payment amount. I did this for 4 years which gave 14 years of payments that I’ve just completed. 7 years of them were rough because all four year amounts were being paid, and the last 3 years have given us some relief. Fortunately for us, our second son went to a state school and with scholarship, we were able to pay for his education out of pocket. I am so glad that I went with the 10 year “sentence” over the 25 year one that some folks take, and the interest rate is no bargain either. That loan amount is going to be substantially higher when you wait until 6 months after the student graduates to start payment. Because we started paying immediately, we were able to mitigate some of the effects of that close to 7% interest rate.</p>

<p>It looks like loan counseling is required for the student’s Stafford loan, but I did not see any instruction to do so for the Parent Plus loan. I may live to regret the deferment a few years from now, but for the moment, best solution.</p>

<p>Just to let you know, there is nothing to prevent you from making a payment on the deferred loan. I deferred my PLUS Loan but once I saw the interest start to rack up I started making payments. However, I don’t have to make a payment in any particular amount, so I can pay more when I want to and even nothing for now should I feel the need not to.</p>

<p>Thank you - I like that idea. Like the flexibility.</p>