info about PLUS loans

[momof3teens]

sorry for what may seem like a simplistic question but... i have no clue about how these work pros/cons etc. with DS we didn't need anything extra beyond our EFC but daughter's 1st choice school is ithaca college with what seems like a HUGE gap amount. any input or info would be greatly appreciated Thanks! Caroline

[calmom]

The college will usually provide you with information about preferred lenders, and there is nothing you need to do beyond filling out a request for the loan -- they simply do a credit check and will give you the loan if you have good credit. There are not complicated forms to fill out. You do have to start making payments while your daughter is in school, but the first payment isn't until February or March of the year that you take out the loan. (You can seek deferred payments, but interest accrues right away, so that's not a good idea)

[mizzou-mom]

Yes, I believe the way PLUS loans work is the payments start soon, not when D is out of college. However, if your D takes out a loan with you as the co-signer, most loans defer payment until after she graduates.

[JustAMomOf4]

PLUS loans -

If you go this route - look beyond the school's preferred lenders. You don't have to use them. If your state has a lending program then look there as well.
Compare lenders for the best deal.

You will borrow money for the year - i.e. if you borrow $5000 then it will be split into two parts - $2500 for the first semester, $2500 for the second.
You will begin paying the loan when the final payout is made. Probably in January.

My advice - talk to the financial aid office and compare lending programs from your state.

[momof3teens]

thanks for your insight--i did read about them on the federal aid web page--i just wanted the insight of CC parents who had been there already!! thanks!