What is the interest rate for Parent PLUS Loans?
Effective July 1, 2006, the interest rate for the Parent PLUS Loan will be fixed at 7.9 percent. When do parents begin repaying a Parent PLUS Loan? Parents are given two options in repaing the Parent PLUS Loan. Typically, repayment begins within sixty days after the final loan disbursement for the academic year the loan was borrowed. For most parents, this will occur in March of the spring semester. Alternatively, parents can choose instead to defer loan repayment until after their student graduates or drops below half-time enrollment. Interest will still accrue and parents will be given the option of paying or capitalizing the interest. Regardless of the repayment option the parent selects, interest begins to accumulate at the time the first disbursement is made. Alternative/Private Loan Programs Alternative/private loans are outside funds borrowed from a bank or lending institution and not part of the Federal Student Aid Program. Accordingly, it is not necessary to file a FAFSA or ot
