We are entering our four weekly installment of evaluating a specific deferment or forbearance. Today we are evaluating the PLUS Borrower with Dependent Student also known as a Parent PLUS In-School Deferment.
What it is: A deferment used if you have a PLUS loan and the dependent student is currently enrolled in school as at least a half-time student.
Eligibility Requirements: This deferment is very similar to the In-School Deferment only now it is based on the child’s enrollment. If they are at least half time at a DOE school, you can qualify.
How long is this Deferment for: This is an unlimited deferment that lasts as long as you meet the above criteria
Why it may not be the best idea: Remember interest accrues from day one of any unsubsidized loan which a Parent PLUS loan is. If you can afford to make payments it is in your best interest to do so.
This deferment is sometimes misunderstood. People assume as long as their child is in school they automatically won’t have to make payments. However since many parents prefer to pay after the final disbursement on a loan it goes automatically into repayment. To request this deferment either contact your servicer (you can often times do it verbally depending on enrollment status) or fill out a PLUS Borrower with Dependent Student Deferment form. Also remember you must reapply for the deferment each time you get a new loan.f
See how an experienced student loan counselor can assist you!