I have two children transferring in this year. I am not a US born person so I’m not clear on the loans system.
For the Direct Parent Loan. I assume I take out a separate loan for each of them this year? Do I then take out brand new loans next year or do I just add to the existing ones? Same question relating to private loans, in case they (or I) go that route.
Thanks so much.
If they have Direct loans they should have signed a Master Promissory note. The individual notes (for each year) are bundled together. Each note may have a different interest rate.
The Parent Plus loans should be the same, but yes, a separate Master Promissory note for each student.
The DIRECT loan is a student loan…not a parent loan. Each student would have their OWN Dorect Loan.
The Parent Plus is a PARENT loan and you get to apply for another next year if you need them. You can apply for a Plus Loan for each student…every year.
I know you didn’t ask for this advice…but I REALLY hope you are not funding college costs completely with loans…for two kids.