<p>Does anyone know if the interest rates on PLUS loans are fixed (the Stafford loan is fixed at 6.8%) or are they variable?</p>
<p>Do PLUS loans have limits like the Stafford loans (Freshman max = $2,625)?</p>
<p>When do PLUS loans have to be paid back, after student graduates or as soon as the loan is approved (which would be while studen is during school)?</p>
<p>Are you able to consolidate PLUS loans from each year if you stick with the same lender?</p>
<p>PLUS loans are only good up to the amount of education… so whatever the school says the cost of the education there is minus any scholarships and other money being received. Payments start while the student is in school. I don’t know the answer to the other 2 questions.</p>
<p><a href=“http://studentaid.ed.gov/students/publications/student_guide/2005-2006/english/types-plusloans.htm[/url]”>http://studentaid.ed.gov/students/publications/student_guide/2005-2006/english/types-plusloans.htm</a> </p>
<p>We had lots of questions about the plus loans too. Maybe the link will help.</p>
<p>Yes, the interest rate is fixed for all loans disbursed after July 2006, at 8.5%</p>
<p>Repayment begins about 2 months after the 2nd disbursement for the year, early during the student’s second semester. Payments can be deferred in some cases, but interest will be charged and accumulated, so is not a good idea to request deferral. </p>
<p>PLUS loans can be consolidated, but I do not know what the advantage to doing so would be if all loans were at the fixed rate.</p>
<p>Alternatively put, the yearly limit for PLUS loans is the EFC.</p>
<p>Prior to this July the rates were variable, which is why it was such a big deal to consolidate these loans before June 30. You can consolidate loans from different lenders. After consolidation the rate becomes fixed. I would not want to consolidate a post July 06 PLUS loan with a pre July 06 consolidated loan, unless interest rates decline.</p>
<p>The standard repayment period is 10 years, there are other options.</p>
<p>Grad Plus loans - go into automatic in-school deferment and will be due about 60 days after graduation (or drop below 1/2 time). Fixed rate of 8.5% (like the others said). These loans are taken out by the student, up to the COE minus any other financial aid. </p>
<p>ParentPlus - same interest rate, taken by the Parent on the student’s behalf, but ultimately it is the Parents responsibilty to pay back. Repayment begins once it is fully disbursed, but depending on the lender, they are eligible for deferment/forbearance options. </p>
<p>I hope that helps.</p>
<p>
No, that is mistaken. The yearly limit for PLUS loans is cost of attendance reduced by other financial aid – so it is the EFC plus any GAP in financial aid.</p>
<p>Example:
Family EFC- $10,000</p>
<p>Cost of attendance - $40,000</p>
<p>Grant: $15,000
Stafford/Perkins Loans: $5000</p>
<p>In this case, the parents can borrow $20,000 with a PLUS loans.</p>
<p>PLUS loans are very commonly used to fill gaps in aid at colleges that do not meet 100% need.</p>
<p>Thank you to rlvj-your timely & complete postings are very appreciated. Meg</p>
<p>Thank you Calmom, I stand corrected.</p>
<p>My only defense is that when looking at various FA packages, we would look at the bottom line, ie, how much $$ will come out of our pocket, and call that what we were 'expected to pay". On several of the FA packages the EFC number didn’t even show up as a line item.</p>