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Financial Planning / Paying For College
|Subject: Re: Question Re: Payment made on Direct Plus lo||Date: 5/19/2013 1:03 PM|
|Author: ishtarastarte||Number: 8040 of 8301|
I'm not sure on the PLUS loans, but on the regular Stafford loans, it depends on if they are subsidized or unsubsidized.
Subsidized doesn't start accruing interest until payback starts. Although apparently if the loan started after July 12, 2012, then it starts accumulating during the grace period.
Unsubsidized starts right away.
Looks like on the PLUS loan,
while you or your child are enrolled at least half-time and
for an additional six months after your child ceases to be enrolled at least half-time.
If your loan is deferred, interest will accrue on the loan during the deferment. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. Your loan servicer will notify you when your first payment is due.
Since it appears you didn't use Direct lending, you'd have to check the loan documents you signed to be sure, but they tend to follow the same guidelines.
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