PARENT PLUS LOAN - HELP!

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PARENT PLUS LOAN - HELP!

Postby kek57 » Thu Feb 17, 2011 8:21 am

I am currently a college senior graduating in April. My mother used the Parent Plus Loan in August to finish off my last bill and when she tried to refinance her home in December, she was denied. She told me that it was because the plus loan barred her from getting another loan. Is that legitimate?

Also -- if I plan on going to grad school in the fall, is this loan still deferred until I finish?
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Re: PARENT PLUS LOAN - HELP!

Postby edvadmin » Fri Feb 18, 2011 10:19 am

Hi,

It is possible that your mother was denied another loan due to having the parent PLUS one. When companies consider you for a loan, one of the things they look at is how much you already owe in debt. So depending on the size of the PLUS loan, this could be the reason.

And yes, you can defer your loans while you are attending school. You just need to send a Deferment Request Form to the Department of Education.
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Re: PARENT PLUS LOAN - HELP!

Postby aparentnonplused » Mon Feb 21, 2011 8:24 pm

Absolutely. Lenders factor in loan to income ratio for any new loans applied for. It could just be that the Parents Plus pushed your mom over the top, depending on the size of the Parents Plus and the new loan.

With regard to your second concern, YOUR loans can be deferred until you finish school. Then repayments will begin 6 months afterward. If you're talking about Parents Plus, they can be deferred a maximum of two years whether or not their son or daughter is in school. Parents have to re-up the deferment every six months. All the while, interest accrues.
--a parent who is to say the least nonplussed and will push for some updating of FERPA
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Re: PARENT PLUS LOAN - HELP!

Postby aljones » Thu Mar 10, 2011 5:42 pm

Hi,
The parent plus loan is not deferred if you are going to Graduate school. Your Stafford loans can be deferred.
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Re: PARENT PLUS LOAN - HELP!

Postby edvadmin » Fri Mar 11, 2011 7:23 am

aljones- Thank you for the clarification! Any federal loans a student holds while in school may be deferred. A Parent PLUS loan can only be deferred while the holder (your parent) is in school or facing economic hardship.

For more information on deferring a Parent PLUS loan, visit ParentPLUSLoan.com
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