Archive for the 'Student Loan' Category
Can a PLUS Loan be discharged (canceled)?
Yes, under convinced conditions. A discharge (cancellation) releases your parents from all obligation to repay the loan.Your parents’ PLUS Loan can’t be canceled for these reasons: You didn’t complete your program of study at your school (unless you couldn’t complete the …
Is it ever possible to postpone repayment of a PLUS Loan?
Yes, under positive circumstances, your parents can receive a deferment on their loans.If they temporarily can’t meet the repayment schedule, they can plus receive forbearance on their loan, as towering as it isn’t in default. During forbearance, their payments are postponed or reduced…
How do my parents pay back these loans?
They’ll repay a FFEL PLUS Loan to a private lender or loan servicer. They’ll repay their Direct PLUS Loan to the U.S. division of Education’s Direct Loan Servicing Center. To read more about repayment options under both programs, read the PLUS Loans section in Funding Education Beyond High School: T…
When do my parents start repaying the loan?
Generally, the first payment is due within 60 days after the loan is fully disbursed. There is no grace period for these loans. Interest begins to build up at the date the first disbursement is made. Your parents must start repaying both principal and interest while you’re in school.Orginal post by …
Other than interest, is there a charge to get a PLUS Loan?
Your parents will pay a fee of up to 4 percent of the loan, deducted proportionately each moment a loan disbursement is made. For a FFEL PLUS Loan, a portion of that fee goes to the federal government, and a portion goes to the guaranty agency (the organization that administers the PLUS Loan Program…
What’s the PLUS loan interest rate?
For PLUS Loans disbursed on or after July 1, 2006, the interest rate is fixed (at 7.90 for Direct PLUS Loans and 8.50 percent for FFEL PLUS Loans). For PLUS Loans disbursed amoung July 1, 1998 and June 30, 2006, the interest rate is variable and is determined on July 1 of every year. For 2007-2008, …
Who gets my parents’ loan money?
Either the U.S. office of Education (for a Direct PLUS Loan) or your parents’ lender (for a FFEL PLUS Loan) will send the loan funds to your school. Your school might require your parents to endorse a disbursement check and send it back to the school. In most cases, the loan will be disbursed…
