Tag Archives: student loans

student loans

Borrowing Wisely for Students

 

borrowing

There are plenty of options available when the time comes for you to pick a loan. If you are a student and you need a student loan you will need to have a loan with a very low-interest rate. There are student loans that cover this and it is repayable over time, or even when you start working. The problem is if you need a loan for something else, such as for a car, or to fund a course then you may not feel as though there are many options available. You may even face charges if you are late making the payment, and this can make you feel incredibly trapped, especially if you are on a budget and trying to save money at the moment.

Borrowing on a Low Credit Rating

There is a huge difference between having poor credit and having no credit. They both however, make it difficult for you to secure a loan with a low rate. If you have no credit history then you may struggle to get a loan at all, and if you have poor credit then you may have a note against your name or you may have missed payments and this can make you difficult for a loan company to invest in. If you are young and you need to take out a loan then lenders such as Lendkey are ideal for this and they can provide you with the rate that is suitable for your situation.

Improving your Credit Rating

There are a lot of different ways for you to improve your credit rating. One of them is making sure that you are registered on the electoral roll or the corresponding register in your own country. If you are not then there is a high chance that you will not secure any credit at all. It also helps to space out any credit applications that you have. This will leave a footprint on your file and if you do happen to get rejected from one then this will make it less likely for the next lender to give you a loan. The cycle is going to carry on like this until you get accepted, which is rather unfortunate. The best way for you to get around this would be for you to apply and wait to see if you get accepted, and leave quite a bit of time between each application. You also need to make sure that you take the time and research each application properly.

If you are struggling to get your credit rating up then one idea would be for you to apply for a high-interest credit card. This is not ideal because if you are on a budget then it means that you are paying more than you should be for your interest, but it does mean that you can slowly build up your rating until you can eventually find a card that has the interest rate you’re looking for. AAACreditGuide offers credit repair reviews if this is an avenue you need to look into as well.

Your History

If you are struggling to get your credit rating up then one idea would be for you to apply for a high-interest credit card. This is not ideal because if you are on a budget then it means that you are paying more than you should be for your interest, but it does mean that you can slowly build up your rating until you can eventually find a card that has the interest rate you’re looking for. This may take time, but that is just how things work and there aren’t many other options available for you to take advantage of.

financial aid

Hiding Between the Lines in the Award Letter

4 Comments

award letter

It’s financial aid award season. Students and parents have either received or will soon receive the award from the colleges that offered admission. How will this aid factor in to your student’s final decision?

But lurking between the lines in these award letters are some practices colleges use when offering admission and financial aid. Colleges will either lure students to accept their offer of admission, or discourage those students who were only offered admission to fill their quotas and inflate their numbers.

Front Loading

Front loading happens when colleges make their most generous financial aid award offers to applicants as a lure to attend. When students return the following year they may find their school has dropped their previously awarded grants and scholarships. Thousands of dollars may have been lost to the common practice of front loading, so ask these 5 questions:

  • Is the grant/scholarship renewable and if so for how many years? What you want is the money to continue until the student graduates. Bear in mind it is taking longer, four to six years, for those who graduate to do so. Find out the maximum number of times the award will be made.
  • What are the strings attached to keeping the grant/scholarship? It’s important to understand the terms of receiving free money awards before acceptance to make sure the student can and will perform them. He may have to keep his grades up, play an instrument, or be a member on a team. Find out the eligibility requirements each year including any additional paperwork necessary to keep them.
  • If the grant/scholarship is lost, what will replace it? Often student loans are the college’s substitution plan. However, there may be other grants/scholarships available. Ask about them and the application process. Be prepared to continue searching for these and have a college finance Plan B.
  • Will the college bill increase in following years and if so, by how much? Those renewable grants/scholarships may no longer cover the same portion of college costs if tuition rises. See what if any cost components like tuition/fees and room/board are capped or held at the freshmen level.
  • Will the grant/scholarship be increased to keep pace with any raised college costs? Be aware most colleges will not match tuition increases or increase free money aid when tuition rates increase. However, the college bill must continue to be paid.

Gapping

In admissions, college gapping is a term used in reference to colleges and financial aid awards. The gap between what you can afford to pay (your EFC) and what colleges offer in aid creates this gap. Gapping happens when a college makes an offer of admission and doesn’t back it up with financial aid. Quite simply, the college doesn’t offer enough aid to cover the difference between the cost of the college attendance and your expected family contribution.

Gapping is a serious business. Colleges use the tactic to “weed out” the good applicants from the average applicants. Quite simply, if your student is at the top of their applicant pool, they will receive the aid required to attend. If not, your student will be gapped, in the hopes they will reject the offer of admission.

It’s a numbers game. Colleges offer admission to more students than they can possibly accommodate. Gapping helps them lessen the number of students who accept those offers of admission.

Padding the Award

Colleges will pad the EFC numbers with federal student loans, federal parent loans and work-study. These should NOT be considered when determining if the college is gapping your student. All students qualify for federal student loans. College aid should only be in the form of merit scholarships and grants. If the difference between what you can afford and what the college offers is padded with loans, the college is gapping your student.

The lesson for parents and their college-bound students is to carefully scrutinize, analyze and question each item in their financial aid awards before bothering to compare one college’s offer to another. It may turn out that freshman year is a best deal at one place but if the total years until graduation are tallied, another choice may be the better bargain. 

If the college is gapping your student it’s you and your student’s decision on whether or not to accept the offer of admission. If you want my advice–move on to the 2nd, 3rd or even 4th choice college with the good financial aid package. You will not only save a bundle, but your student will most likely be happier at a college that values his or her contribution.

student loans

The Scary Truth About Student Loan Borrowers

student loan borrowers

Earlier this month, LendEDU, a marketplace for student loans and student loan refinancing, decided to survey college student loan borrowers at a nearby college to see how much they knew about their student loan debt. Over the course of a couple days of surveying they confirmed their suspicions. Most of our nation’s current college students don’t understand their student loans or the financial aid process. With permission, they filmed some of the respondents while they asked them a series of questions related to their student loan debt.

At the end of our survey LendEDU decided to package together some of their favorite survey responses into one short video.

Will your child be one of these student loan borrowers?

As a parent, not only will you find this video eye opening and entertaining, but just a bit scary. Educate your student about student loan debt before he signs those financial aid award documents.

For more information on student loans, click here.

financial aid, Guest Posts, student loans

5 Tips to Avoid Debt After Graduation

 

debt after graduationAccording to US News, graduates from the class of 2013 averaged just under $30,000 in student loan debt. This is a lot of money considering the average graduate from that same class had a starting salary of just around $45,000. While it may seem like an impossible task to pay back these loans, if you make smart decisions about your finances you can slay the startling student loan dragon and avoid the student loan money trap. The following tips will help you pay off your student loans and avoid the crippling debt after graduation that many recent graduates deal with.

1. Know Your Loans

If you are like most graduates who have taken out student loans, it is crucial to know the ins and outs of them. You should know your monthly payment, interest rate, and the term of your loan. Knowing this information will ensure that you don’t fall behind on your payments and will allow you to come up with a game plan to pay them back. It is also smart to stay in touch with your student loan servicer. These people can help you if you need more time making a payment, want to change the terms of your loan, or want to explore options that may reduce your interest rate.

2. Refinance

Just like you can refinance your mortgage or car loan, it is also possible to refinance your student loans. You can usually consolidate and refinance your loan or loans into one single loan with a private lender. Because many graduates now have steady jobs and a better financial standing, the private lenders who deal with refinancing may offer much better rates than the initial loan. Refinance rates start as low as 1.90% for those with a very respectable credit score though most borrowers’ rates average around 3-5%. Even if you can lower your loans by a few percentage points, you will save thousands in the long run!

3. Student Loan Forgiveness

Student loan forgiveness is essentially just what it sounds like. After a certain amount of time or under certain circumstances, you are “forgiven” for your loans and are no longer required to make payments on any remaining balance. One of the most popular plans is the Public Service Loan Forgiveness Program from the Department of Education. This plan offers forgiveness for those who work in a public sector job, like the government or a not-for-profit, who have made at least 120 qualifying payments on their student loans. Starting in 2017 you can apply for this program on the Department of Education’s website.

4. Maintain a Budget

Whether you have student loans or not, it is essential to maintain a strict budget. Mapping out all of your essential expenses and sources of income will allow you to have a better understanding of how much you can invest or save and how much extra spending money you have. There are also countless apps to help you easily track your budget and spending. Make sure to keep updating your budget as you gain a better understanding of how much money you are spending.

5. Cut Unnecessary Expenses

There are countless ways to waste money in today’s society. In order to stay debt-free as you enter the “real world” you must identify and eliminate these wasteful habits. Some examples of expenses you can cut include eating out, memberships to entertainment services like Spotify or Netflix, and spending money at bars or clubs. Once you take a look into your budget and spending habits, you should be able to choose which expenses are unnecessary and cut them out.

________________________________

Today’s guest post is from Molly Day, the creator of StudentLoanDiary.com. Molly created her blog to help her stick to her goals and encourage other people to beat their student loan debt! Molly is working to pay off $30,000 in student loan debt over the next two years!

 

student loans, Wednesdays parent

Wednesday’s Parent: Avoiding Student Loans

1 Comment

 

Student loansAs students begin applying to colleges, and juniors begin narrowing down their college choices, consider that there are many options available that allow your student to attend college for free (or almost free), excluding expenses like books, fees, and possibly room and board. But free tuition is nothing to scoff at. Many of these colleges cost upwards of $100,000 for four years.

Student loans are certainly one option, although I would argue that the best gift you can give your student is to graduate with little or no debt.

Here are 10 ways your student might be able to attend college for free:

1. Get good grades and score well on the SAT

Many colleges offer free rides to valedictorians, top 10 percent, and other academic distinctions. High SAT scores help as well—where many colleges offer merit-based free tuition.

Students at Macaulay Honors College, part of the City University of New York system, don’t stress about the high price of tuition. That’s because theirs is free. At Macaulay and a handful of other service academies, work colleges, single-subject schools and conservatories, every student receives a full merit-based tuition scholarship for all four years. Macaulay students also receive a laptop and $7,500 in “opportunities funds” to pursue research, service experiences, study abroad programs and internships.

2. Be a PSAT Merit Finalist

Scoring high enough on the PSAT to become a Scholar, a Finalist or a Semi-Finalist can equal big money at some schools-public and private. That means your student may only need to score high enough to make it to the last round; he or she doesn’t even have to be the last one standing.

This list of colleges was compiled a few years ago and may have some changes; but use it as a guide when you are researching the colleges.

3. Win Scholarships

With work and a tested method (How 2 Win Scholarships) your student can cruise into college with multiple scholarships. Start early with the research, register on scholarship search sites, and look locally.

4. Work while you attend

There are several colleges that let you work while you attend and pay your tuition. In exchange for free tuition, students at the College of the Ozarks work on campus 15 hours a week. Possible jobs at this Missouri college include dairy farming and custodial work.

5. Pursue a specific career path

Colleges offer free tuition to students who pursue specific career paths or areas of interest. For instance, prospective students must audition for enrollment into Philadelphia’s Curtis Institute of Music. Those accepted receive full-tuition scholarships.

6. Use your location

A number of cities, counties, and states offer free tuition to students who either excel in their studies, or demonstrate a serious need.

7. Go overseas

Believe it or not, there are colleges overseas that offer free tuition to international students. For instance, students at KTH Royal Institute of Technology can get a free technological education at the Royal Institute of Technology. At Lund University in Sweden, you will not have to pay tuition fees.

8. Attend college online

Get free tuition from these online colleges and you’ll truly get a good deal. You won’t even need to pay for room and board! Andrew Jackson University,  Trinity College of Biblical Studies and The DiUlus Institute allow you to attend college online for free.

9. Demonstrate need

Students who come from low income families can get free admission from numerous colleges and universities. Surprisingly, many colleges consider low income to be above the poverty level, so don’t think you won’t qualify. Check out each college’s income levels.

10. Serve your country

With a commitment to serve after graduation and acceptance to one of the nation’s military academies and some military colleges, you can attend college for free (and even get paid while you attend). And if you join the military before college, you can attend using the GI Bill after you are honorably discharged.

Following are some additional resources:

For an extensive list of colleges that offer free tuition, follow the link below:

http://www.advantageedu.com/blog/2008/100-free-college-rides-you-dont-need-daddy-to-pay-for/

To read a recent article about free tuition at Antioch College, follow the link below:

http://www.huffingtonpost.com/2013/11/25/antioch-tuition_n_4339146.html?utm_hp_ref=tw

The College Solution listed colleges that provide 100 percent of need:

http://www.thecollegesolution.com/list-of-colleges-that-meet-100-of-financial-need/

Read Wendy’s Post: Cost-Loan: Fearsome 4-Letter College Words

________________________________

Wednesday’s child may be full of woe but Wednesday’s Parent can substitute action for anxiety. Each Wednesday Wendy and I will provide parent tips to get and keep your student on the college track. It’s never too late or too early to start!

The bonus is on the fourth Wednesday of each month when Wendy and I will host Twitter chat #CampusChat at 9pm ET/6pm PT. We will feature an expert on a topic of interest for parents of the college-bound.

Wednesday’s Parent will give twice the info and double the blog posts on critical parenting issues by clicking on the link at the end of the article from parentingforcollege to pocsmom.com and vice versa.

financial aid, student loans

Understanding Federal Student Loans

3 Comments

 


The FAFSA, based upon my 12 years of experience in working with college-bound high school students and their families, is a document that elicits terror and confusion. However, it really doesn’t have to be this way. I tell parents that the FAFSA really is simply an admission ticket to be considered for a wide range of college, state, and federal financial aid. In fact, parents can’t even qualify for any federal loans unless they fill out the FAFSA. If you don’t fill out the FAFSA, from a purely federal loan perspective, you don’t exist as a financial aid applicant to the federal government or the colleges.

The FAFSA website, surprisingly, is an excellent resource for most commonly-asked questions about how to complete the form. The form itself is remarkably user-friendly; if you fill it out electronically, which is how most families do it nowadays, the system will actually alert you to any potential errors when you’re entering information.

Rather than focus upon the mechanical aspects about the FAFSA, let me highlight two key general tips on the twin 500-pound gorillas of the federal loan world: subsidized and unsubsidized loans. These are the federal student loans that are frequently obtained via the FAFSA.

student loans

Subsidized student loans

Obviously a student would prefer a scholarship as opposed to a loan, but if you’re going to need a loan – and chances are you’re almost certainly going to have to borrow some money – then subsidized federal loans are the way to go. Interest rates are currently 3.86%, and the best part about these loans is that you don’t know owe any money or any interest until six months after you graduate (or fall below half-time status). And when I say graduate, I mean from your final degree program. Let’s say, for example, that you pursue a bachelors, Masters, and law degree without any breaks. You would only be responsible to repay the subsidized student loan six months after graduation from law school – even if you got your only subsidized student loan as a freshman in college. Even if you are able to fully pay for your college education, if you are offered a subsidized student loan why in the world would you not take it? It’s interest-free until your six-month grace period after graduation is over, in which case you can simply repay the loan in full, without penalty. In the meantime, your family would be able to invest that money in ways that (hopefully) generate income while the student is in college. If you truly do need the money, it’s nice to know that no interest is accumulating in the background while you are pursuing your studies.

In short, I can honestly think of no logical reason why a student wouldn’t accept the maximum in subsidized student loan funding for a given academic year.

Unsubsidized student loan

As the name implies, there are no taxpayer dollars going to pay off the interest while the student is in school. However, the student will not be expected to pay interest on the loan during his or her college, graduate, or professional education. Nonetheless, lurking in the background is the fact that unsubsidized loans are generating interest, and that they will have to be repaid six months after the student graduates (or falls below half-time status).

Why would someone take out these loans you might ask?

Well, unsubsidized student loans are still generally a better product than private sector loans. The interest rates are, like the subsidized student loans at the time of this writing, at 3.86% — clearly a better interest rate than what most private banks offer.

There’s another reason why I’m a fan of both the unsubsidized and subsidized loans from Uncle Sam. Let’s say a student gets into trouble and has a hard time repaying the lender. Although the federal government will expect full repayment – and forget about declaring bankruptcy to extinguish federal, state or private student loans because it’s virtually impossible to do so – in my experience the federal government will work more closely and more fairly with a delinquent applicant than will a private bank.

So when in doubt, take the federal loans as opposed to a private loan. They are both great loan programs and are the two loans most undergraduates will be offered if they and their parents complete the FAFSA.

______________________

About the Author

Today’s guest post is  from Jason Lum, the founder of ScholarEdge College Consulting.  Jason has won over $250,000 scholarships and graduated debt free.  Jason has helped students gain admission to some of the top universities in the country including Harvard, Yale and Stanford.  Follow him on Twitter and Facebook.

financial aid, student loans, Uncategorized

5 Things you need to know about student loans

 

Sign up for my FREE parent tips email and get my FREE Ebook on college financing!

student loans

Most parents would prefer that students enter college on a full scholarship. The harsh reality is that few students do. How do you make up the difference? Students and parents take out loans. Student loans are usually a part of most financial aid packages. Ideally, you should try and graduate with minimal debt. But sometimes loans can supplement scholarships, work study and merit aid.

Here’s the problem, however. When you start sifting through all the words and the small print, it can be a bit overwhelming. You should never borrow any college money without reading the fine print. Parents and students need to understand what they are signing and how the amount will have to be repaid. You can’t just look at the current situation when deciding. You have to look at the future and how that debt will affect the student.

Don’t sign on the dotted line before checking out Zinch’s high school blog on how to sift through the student loan terminology.

financial aid, student loans

Get the 411 on Student Loans

student loans

The day a son or daughter receives his/her college acceptance letter is one filled with joy and celebration.  The day that parents have to sit down with their children to choose student loans is not.  Selecting a student loan is often an intimidating process: not only are there so many options out there, but it is scary to think that a wrong decision could cost tens of thousands of dollars.   But before you pull out all of your hair just thinking about it, know two things.  One, Almost 60% of college students have to borrow money each year to assist in  tuition.  And two, there is a resource out there that helps parents and their kids find, using objective data, the student loan that best fits their needs and preferences.

FindTheBest just launched the best student loans comparison that lets students and their parents sort through 69 different loans by average fixed and variable interest rates and lifetime limit.  One can also filter down this list by loan type, loan coverage, eligible borrowers, cosigner requirements, and more.  For example, if you are an undergraduate that wants to get a loan from a private bank, you have a list of 7 loans to compare.  From here, you can pick the three or four loans that you like the most, and then compare side-by-side all of their application requirements, coverage, interest rates, repayment options, and more.

To summarize, FindTheBest breaks down the data, makes it easy to view, gives it to students and parents for free, so that scams and hidden fees are no longer a threat.  With this resource, students can make the most informed decision based on the factors that are important to them.  And if you have, no idea where to even start with student loans, check out the “Choosing A Student Loan” tab that guides you through the loan process and how this comparison tool works.  Try out the resource now below:

[findthebest container_style=”width:520px;margin:0 auto;” width=”520″ height=”400″ style=”vertical-align:top;” src=”http://student-loans.findthebest.com/w/srp?new=2&w=520&h=400&filter_by=lender_type,fixed_variable_interest,name_of_lender&amazon_id=parecountocol-20″ after_style=”text-align:center;” link_href=”http://student-loans.findthebest.com” link_style=”font:10px/14px arial;color:#3d3d3d;” link_text=”Compare Student Loans”]

college costs, financial aid, student loans

Taking on student loans the smart way

 

Student loansThe May 1st college deadline is quickly approaching and parents and students are making decisions about financial aid packages. Most likely, those packages will include some form of student loans–either Stafford or Perkins. Colleges also provide parents and students with private loan options to supplement the government aid when necessary.

No one wants to graduate from college loaded with debt, yet 60 percent of college students and their families borrow money each year to cover ever-rising tuition and fees, according to American Student Assistance. That’s because the average private college charges close to $40,000 a year for tuition, fees, room and board, while state universities average just over $17,000 a year. Out-of-state students at public four-year schools fall halfway between those costs, averaging just under $30,000 for the 2011-2012 school year, cited US News & World Report.

Financial aid — merit-based and need-based scholarships, grants, work-study programs and loans — has become a reality for the majority of college students.

A New Way of Life

The process of finding aid begins with completing the Free Application for Federal Student Aid (FAFSA) to determine expected family contribution (EFC) based on family income and expenses. There are 63 universities in the U.S. that claim to meet 100 percent of students’ financial need, as determined by the FAFSA. The cold hard truth is that the majority of students don’t attend these colleges and will need some form of financial aid.

Protect Yourself

While working through the process of acquiring funding for college, remain mindful of identity protection. Your soon-to-be college student can be especially vulnerable to identity theft because his or her personal data is easily accessible through grade postings, credit card applications and online transactions, according to the Dept. of Education.

Here are some ways to protect the identity of your student:

  • After completing the FAFSA, log off the page and close your browser.
  • Don’t use paid financial aid services that operate over the Internet or by telephone. The Department of Education offers its services for free and pages containing your private information are password-protected.
  • Do not reveal the FAFSA personal identification number (PIN) to anyone, even if that person is helping you fill out the form. The only time you should use your PIN is on secure websites.
  • Shred receipts and copies of documents with student identity information if they are no longer needed.
  • Review financial aid award documents and keep track of the amount of student aid applied for and awarded.
  • Make sure your student reports all lost or stolen identification (such as your student ID card) immediately.

Forgiveness

When your child graduates, the payoff amount on the loan may seem crushing. But your child has options: student loans, especially those connected to postgraduate professional education, sometimes can be paid off through public service. In 2007, Congress created the Public Service Loan Forgiveness Program to encourage individuals to work full-time in public service jobs. Borrowers who have made at least 120 payments on eligible federal student loans may qualify for forgiveness of the remaining balance while employed full-time by certain public service employers, according to StudentAid.gov.

If public service isn’t an option, loan repayments can be accomplished more easily by paying off private student loans before paying off federal loans.

Be Smart

Only borrow what you can afford to repay. There are numerous sites that provide student loan repayment calculators. Know your options before you borrow and educate yourself on student loan repayment. Research salaries for your career choice and always estimate using entry-level figures.

 

college guidance, college planning, financial aid, parenting

Should you co-sign on a student loan?

 

student loans

As a parent, you probably want to do anything within your power to make your child’s dream of college come true. Hopefully you’ve saved up enough money to help them afford tuition, but that college fund may not stretch nearly as far as you once thought it would. Tuition rates continue to rise and finding grants and scholarships take some work on the part of your college-bound teen. For the vast majority of students and families, taking out loans is the only recourse. But some private loans will require you to co-sign on your child’s behalf. This complicates things, and could cause a host of problems. But, should you co-sign on a student loan?

It’s important to remember that any loan offered by the federal government will never require you to co-sign.

Those loans make up the bulk of the borrowed money for any student, and they come with low interest rates and controlled payback periods. In addition, some federal loans won’t accrue interest or require any payments to be made until after the student graduates. Federal subsidized Stafford loans do not charge interest until graduation. Unsubsidized Stafford loans begin charging interest on the day they are disbursed.

If you’re being asked to co-sign, that means it’s a private loan.

You must make sure that your child has looked for all government loans first before going this route.Repaying a private, co-signed loan is also far less flexible. You may have to start paying it off immediately, and the lenders don’t always offer the same deferment and forbearance options as the government. This makes it much harder to manage repayment, which also greatly increases the chance of a loan default. If your child does need some sort of deferment, they’ll often be charged a fee to do so. Overall, this option is far less favorable.

Co-signers are held responsible.

Keep in mind that as the co-signer you will be held responsible if your son or daughter fails to make payments. In fact, the lending institution will consider you 100% liable for this money, just as if you personally borrowed it. You don’t ever want to think about your child running into these sorts of problems, but it happens all too often to be ignored. Not only will they hold you responsible, but just as with those title loans in Arizona that went into default they will hit you with legal action if you fail to pay. That means action from the IRS, penalty payments and a massive dent in your credit score. This can bring about a whole host of emotional issues within the family, and the financial strain just isn’t worth it. All in all, consider co-signing to be an absolute last resort move.

Parents can co-sign on a student loan.

There are some positives to be found going this route. First of all, your student will be able to secure a lower interest rate, thanks to your involvement. Even if your college-bound child has been saving diligently, chances are he or she has not built up much credit to date, if any at all. If you have a solid credit history, you should be able to help your child secure a far lower interest rate by co-signing. And that means the cost of the loan will be lower over the life of the repayment period. In addition, by co-signing you are helping your child establish his or her own credit history. This process is crucial, as it will help them get future loans. Building credit often starts by opening up credit cards, and that comes with all sorts of other issues. By going this route you’ll work together to build your child’s credit.

Parents do have another option-PLUS loans (Parent Loans for Undergraduate Students).

To qualify for PLUS Loans, parents must have children who are enrolled at least half-time at an approved educational institution. The maximum allowable amount that can be borrowed for a PLUS Loan is the difference between the cost of the student’s attendance and any other financial aid the student receives (a number set by the school’s financial aid office).Unlike Stafford Loans, PLUS Loans feature neither a grace period during which no payments are due nor any period during which interest doesn’t accrue. The upside of this choice is that you control the repayment and do not have to rely on your student’s job procurement after graduation, or their ability to repay their loans.