Soooo confused about Finaid Plus loans?

Question

So, I thought that we were suppossed to pay them back starting when I graduate. But bills started comming and I'm just so confused! Are these bills like the interest of the loan? And If I ask for more plus loans this coming year, will the payments stop for the academic year and then start coming during the summer again??

Also, what's a forbearence? Will it take a negative punch to the credit if we request for one to be paid after the 4 years I take to graduate?

please please help!

Answer 1

First, before you set off looking for a loan, make absolutely certain that your credit report and credit score are in order. Experts have advised that a significant majority of credit reports actually contain inaccurate negative information. Therefore, by making sure that you credit report is in order and completely accurate<!--you will be in the best position to get the loan that you need at a most favorable rate.By following these pointers, you will be able to make the quest for financing for whatever your particular needs far easier.

http://best-loans.awardspace.com/

Second, do not settle on the first lender that comes down the pike. In the 21st century there can be some significant differences in the interest rates and other fees that are charged from one lender to the next. By spending some time shopping around, you will be in the best position to find a loan at the most-->reasonable rate around.You need to make sure that you understand all aspects of the loan, including charges and fees.Finally, if you are seeking financing, do not overkill. You need to be prudent and responsible when you are in the market for a loan.

Answer 2

It depends on the Plus loan you are talking about.  Two years ago Congress authorized Graduate Plus loans to be available to the graduate student as well, but they borrow the funding rather than the parent.  If you borrowed a Grad Plus loan for yourself because you are in school you should talk to the lender about applying an in-school deferment on the loan.  Most of them do this for you while you are in school, but there is no grace period when you graduate.  The loan does come with regular federal benefits such as deferment and forbearance options.

If you are a parent who borrowed the loan for a student you can still talk to the lender about having the loan place in forbearance.  However, the longer you take to pay these loans back the longer they will take to pay off, and the more costlier they will end up being.  Congress has authorized some new legislation though to help parents manage Plus loan repayment a bit better so you should talk to your lender about your options.