Student Unubsidized Loans and Parent Plus Loan, repayment and funding timing questions

[eandesmom]

Fairly simple questions I think yet I can’t seem to find the answers anywhere.

We may or may not be taking any loans at all but as we evaluate the various colleges, fully understanding our options should we feel that some amount of debt is worth it for a particular school

For both of these, is it possible to start repayment before the student graduates? I realize that payments can be accelerated once they begin to pay off a loan earlier and that the students loan interest will not start accruing until they graduated but a parent loan starts immediately.

On that same note. If a parent elects to take a loan one year, at what point do they actually “pull” the funds. Are you required to take all that you have requested, can you take part, can it roll over to the following year, or is it by quarter/semester depending on the school? I assume you submit for loans annually, as needed, for both kinds.

[twoinanddone]

You can repay any student loan, parent or student, at any time without prepayment penalty. Many choose to pay the interest as it accrues.

The loans are awarded by the year, disbursed by the semester. If you don’t need the money, don’t take the money. It does not roll over to the next school year, so you have to reapply the following year.

[4kidsdad]

For both of these, is it possible to start repayment before the student graduates?

Yes.

[BelknapPoint]

Student Unubsidized Loans…

I realize that… the students loan interest will not start accruing until they graduated but a parent loan starts immediately.

With unsubsidized loans, the interest starts accruing as soon as the loan is disbursed. Payments can be deferred while the student is in school and during grace periods, but the interest will be capitalized.

[mommdc]

I think for Parent Plus loan repayment begins right away unless a deferment is requested.

And student unsubsidized loan does accrue interest while student is in college, only subsidized and Perkins loans do not as far as I know.

[4kidsdad]

I think for Parent Plus loan repayment begins right away unless a deferment is requested.

Yes. However,

When do I begin repaying my loan?
If you receive a Direct PLUS Loan as a graduate or professional student, you don’t have to make any payments while you’re enrolled in school at least half-time, and for an additional six months after you graduate, leave school, or drop below half-time enrollment.

If you are a parent borrower, you’ll generally be expected to start making payments on your Direct PLUS Loan once your loan is fully disbursed (paid out). However, you may request a deferment while your child is enrolled at least half-time and for an additional six months after your child graduates, leaves school, or drops below half-time enrollment. You don’t have to make any payments while your loan is deferred. If the school your child is attending requires you to submit your request for a Direct PLUS Loan at StudentLoans.gov, you’ll have the option of requesting a deferment as part of the loan request process. You can also contact your servicer to request a deferment.

During any period when you’re not required to make payments, interest will accrue on your loan. You may choose to pay the accrued interest or allow the interest to be capitalized (added to your loan principal balance) when you have to start making payments. Your loan servicer will notify you when your first payment is due.