Student paying off parent plus loan

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Student paying off parent plus loan

Postby mbaiesc » Wed Apr 13, 2011 4:01 pm

Hello, if the student is playing off a parent plus loan because the parent does not want to make the payments themselfs, is there any way to deferr such a loan until after the student graduates?
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Re: Student paying off parent plus loan

Postby Aid Whiz » Thu Apr 14, 2011 8:53 am

Unfortunately, no. A Parent PLUS loan is in the parent's name and is therefore their responsibility. The only way to defer a Parent PLUS loan is if the parent is also a current student.
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Re: Student paying off parent plus loan

Postby ryanhcarl » Thu Apr 14, 2011 5:40 pm

So then the loan cannot be deferred until graduation? Is this a new condition, because I read yesterday on the FAQ for parent plus loans that:

"When do I begin repaying a PLUS Loan?
Parents now have the choice of making payments while the student is in school or deferring payments until the student graduates. If you choose to pay after graduation, interest will accrue from the time of full disbursement. You can choose to pay the interest monthly, or you can defer both interest and principle until the student graduates. If you choose not to pay the interest monthly, it is capitalized no more than four times per year."

I'm not trying to seem obnoxious or anything by being that guy who sits there and quotes a rulebook at someone, I'm just trying to figure out if I'm misunderstanding something.
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Re: Student paying off parent plus loan

Postby Aid Whiz » Fri Apr 15, 2011 12:09 pm

Parent PLUS loans cannot be deferred after graduation unless the parent is a student as well. If you're still in school then there IS a deferment option. To do this you need to send an in-school deferment request to the Department of Education. Sorry for the confusion!
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Re: Student paying off parent plus loan

Postby sstudentss » Fri Jun 03, 2011 9:15 pm

okay. so the point is you can request for a defferment option if only you are a student. be it you or even your parents, as long you are a student, you can take this option.
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