Roughly 80% of all students in colleges and universities have to take out some form of financial aid; the vast majority of students have to take out Student Loans. Some parents even have to take loans to assist in paying for their child’s education. Loans issued to parents to cover the expenses incurred by the student for such things as housing, food, books and transportation. The PLUS (Parent Loans for Undergraduate Students) program loans are available to the parents of students who are enrolled at least half time.

About PLUS Loans

PLUS Loans are issued to the parents of students to cover the costs of their education that are not covered by the student’s regular financial aid (scholarships, grants, loans) to be sure all fees are paid. The loans are low interest and easy to get as they have no required credit check and are readily available. These loans used to be available to undergraduate students only, but in 2006 the Federal Loan Program began issuing them to the parents of students in graduate and post-graduate programs.

PLUS Loan Repayment

Normally, you have to start making payments 60 days after the disbursement of the loan. The Promissory note has all the details you need to know to pay the loan properly. The payments are pretty straightforward and easy to follow. There are seldom any hidden fees that surface after you have already begun paying but you should be sure to read all the information before you sign the promissory note.

Postponing Repayment

There are times when repaying your loans can be difficult due to various financial issues that can come up. At these times you may want to postpone the payments on your PLUS Loan. Previously it was completely impossible to postpone payments on a PLUS Loan but as of July 1, 2008 you can do just that.

• For postponement you need to contact you lender and inquire about the application process for postponing your payments.
• In most cases it consists of filling out the application, including vital information and proof of your hardship or need for postponing repayment of your PLUS Loan.
• In the end, you get to postpone your loan payments for up to six months after the student has graduated or dropped below half time status.
• You should keep in mind that interest on your loan will continue to gather (monthly or quarterly).
• Once you have cleared the date of postponement, you have to start repayment according to your Promissory note.