3 common points of Student Loan Confusion

There are a lot of problems that are caused by misunderstandings for student loans.  Of these things, 3 seems to come up and cause the most confusion.

Parent PLUS loans are not transferrable

You got this loan to help you son and daughter and now that they are out of school it’s time for them to start paying.  While anyone can pay on the loan, it is still your loan in your name and cannot be transferred.

If you are less than half-time payments will start

Many people believe that being in school is enough to stop your payments or you have to graduate first.  In order to qualify for an In-School Status or Deferment you must be attending at least half time at a Department of Education approved school.

Interest accrues on Unsubsidized Loans from the day they are disbursed and on Subsidized Loans from Grace Period in some instances (after Grace in others!)

For Subsidized Loans, your interest accrues from the day you enter grace for loans that were disbursed on or after 7/1/12 and before 7/1/14; for all other subsidized loans interest is paid by the government until the loan enters repayment.  For unsubsidized loans, the borrower is responsible for all interest (though payments don’t have to be made).

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