Beware of Parent Plus Loans

borghugh
Tue, 16 Oct 2012 11:11:50 +0000

When you take out a PLUS loan there are several repayment options. One is to pay it back after the 2nd half of the the loan is disbursed. Another is to begin paying it back 6 months after graduation. I have an agreement with my son that he beging paying back the loan once he graduates from college. In the meantime I am paying all the accruing interest charges on a monthy basis. If he cannot pay the loan back six months after graduation, I will make payments until he can. As far as paying back ahead of time , all you have do do is set up your bank account and routing number on their website and you can pay back as much as you want, whenever you want, you don’t have to wait until six months after graduation. In addition, with these loans if the parent borrower or the student dies(god forbid), these loans are forgiven. There are no such provisions on private loans.