<p>HI i have been offered 2 loans, and was wondering when interest goes into effect for them?
the 2 loans are
Direct Unsub Stafford Loan<br>
Direct Parent PLUS Loan</p>
<p>Interest starts accruing on both of them the day the loan is disbursed to your school.</p>
<p>The only loans that where interest does not accrue from day one are subsidized loans (Subsidized Stafford and the Perkins loan) where the govt pays the interest until you graduate or drop below half time plus a grace period. For unsub Staffords or PLUS loans the interest starts day 1.</p>
<p>The unsub Stafford has a lower interest rate than the PLUS, I believe, so take the max on that one before moving to the other. .</p>
<p>Yes. Unsub is 6.8%. </p>
<p>I keep hearing different things about the PLUS interest rate - 8.5% or 7.9%, I’m not sure which is accurate. (my daughter’s school shows the direct PLUS as 7.9%)</p>
<p>Also I believe the origination fees are higher for PLUS than for Stafford.</p>
<p>Of course the Stafford is a student loans and the PLUS a parent loan.</p>
<p>I’ve seen the 7.9 on several (direct, of course) school websites. Maybe now that everyone is doing direct loans the former FFEL rate applies? The Plus has a 4% origination fee but it’s discounted to 2.5% at the time of disbursement and the other 1.5% is waived if the first 12 payments are made on time, otherwise it’s added to the payment amount I think.</p>