Quick question re PLUS Loans

Parent Cafe
1

<p>I've been looking at information about PLUS loans and most of them say "repayment begins 60 days after disbursement." Does that mean repayment of principal or just repayment of interest? Anyone?</p>

2

<p>both- generally in my experience when you pay back a loan,especially in the beginning, interest is the larger part of the monthly payment. YOu can always make extra payments however, and that can be directed to principal</p>

3

<p>The experts will chime in, but I believe that based on "need" it may be interest only until graduation, then pricipal and interest, and if the "need" is not so great, it is P & I from the beginning.</p>

4

<p>Thank you both. I've been reading about this and simply can't wrap my brain around it. Sigh.</p>

5

<p>
[quote]
Repayment</p>

<p>Standard repayment: You make both principal and interest payments each month up to a 10-year repayment term. This plan has the lowest total interest cost. </p>

<p>Graduated repayment: You make reduced payments in the early years of repayment and increased payments thereafter, while still paying off the loans within the maximum 10-year period. With graduated repayment, you have a higher total loan cost than with standard repayment. </p>

<p>Income-sensitive repayment: Payments are a percentage of your gross income. You must reapply every year for this plan and payments are adjusted annually to reflect changes in income. With income-sensitive repayment, you have a higher total loan cost than with standard repayment. </p>

<p>Extended repayment: If you have high student loan debt, you may be eligible for up to a 25-year repayment term and the choice of standard or graduated payments to keep payments affordable. With extended repayment, you have a higher total loan cost than with standard repayment. </p>

<p>SMART LOAN Consolidation: You combine your eligible loans into a new loan with a single monthly payment and a fixed interest rate. While SMART LOAN Consolidation can substantially lower your monthly payments, it will generally result in a higher total loan cost.

[/quote]
</p>

<p>There are more details on this site:</p>

<p><a href="http://www.salliemae.com/get_student_loan/find_student_loan/parent_loans/plus/?dtd_cell=google%5B/url%5D"&gt;http://www.salliemae.com/get_student_loan/find_student_loan/parent_loans/plus/?dtd_cell=google&lt;/a&gt;&lt;/p>

<p>Lastly, check the copy of the Master Note for the PLUS note. The repayment schedule is outlined on page 2. </p>

<p><a href="http://www.salliemae.com/NR/rdonlyres/29AA2195-0C24-40BD-B54F-5E801665C256/5617/PN_FederalPLUSLoan.pdf%5B/url%5D"&gt;http://www.salliemae.com/NR/rdonlyres/29AA2195-0C24-40BD-B54F-5E801665C256/5617/PN_FederalPLUSLoan.pdf&lt;/a&gt;&lt;/p>

6

<p>We have a PLUS loan for our son. During the school year, we received statements regarding accruing interest, which we paid during the year -- this wasn't required, but we didn't want to pay interest on top of interest. The repayment schedule began right at the end of the school year, which was probably 60 days after the payment for the third quarter was made. We consolidated, to lock in a better interest rate, which I don't think will be possible any longer, due to changes Congress made in the student loan programs. I hope this helps!</p>

7

<p>Xiggi, I hope the people in your real life appreciate you half as much as I do. Thank you.</p>

8

<p>Also for our plus loans and I imagine it is standard- there are two dispersal dates, one for each semester.
For the 2005-2006 school year, payment did not begin until the loan was fully dispersed, which I think was in Jan 2006.</p>

9

<p>our PLUS loan lets us pay interest only while the child is in school. It is through Citibank and its called an inschool deferment</p>