Borrowing Basics

If you had taken out a Federal PLUS Loan as a parent, you would have been responsible for repayment of the principal and interest on your loan from the day the funds were disbursed. There is no grace period and the first payment is due within 60 days of the final loan disbursement date. If you borrowed multiple PLUS loans (for example, if you had more than one child in college at the same time), remember to account for all loans when determining your plan for repayment.

Federal Stafford Loan

Also, keep in mind that any student loans your child had taken out for college need to be paid back, regardless if the degree was completed or a job was found in the field of study. Once out of college, your child will typically have a six to nine month grace period, depending on the type of loan program, before repayment starts. On a Federal Stafford loan, most lenders will allow your child to choose a repayment plan that best suits your child’s financial status. Repaying a student loan is an important responsibility. You may wish to remind your child to make sure to budget money wisely in order to make the monthly payments.

Click here for information on student loans.