Can Parent PLUS loans have a cosigner for $30k freshman year? Confused about repayment options

What you're looking for is the Parent PLUS loan. It's a federal loan that parents can take out to cover educational expenses not covered by other financial aid. About the cosigner - Parent PLUS loans don't technically have "cosigners" in the traditional sense. If you have adverse credit history, you can get an "endorser" (which functions similarly to a cosigner) to help you qualify. As for repayment, there are several options, but the standard one is that repayment begins immediately after full disbursement. However, parents can request a deferment while the student is enrolled at least half-time and for six months after they graduate, leave school, or drop below half-time enrollment. The program you're thinking of might be this deferment option.

my sister did this last yr for my nephew. parent plus loans are AWFUL, interest is like 8% i think???? she wished shed gone with private loans instead but nobody told her. they let you borrow up to the cost of attendence minus other aid but WATCH OUT the interest is bad bad bad

I think your talking about deferment. We did it for our sons college. You dont pay until 6 months after they graduate but INTEREST STILL ADDS UP during that time!! Found that out the hard way lol

To directly answer your questions: 1) For Parent PLUS loans, you don't get a cosigner - you get an endorser if you have adverse credit. This person agrees to repay the loan if you don't. 2) The repayment option you're thinking of is called deferment. While your student is in school at least half-time and for 6 months after graduation, you can defer payments, but interest still accrues. 3) You can borrow up to the cost of attendance minus other financial aid received. 4) Interest rate for 2024-2025 is projected to be around 8.05%. 5) Deferment is not automatic - you must request it from your loan servicer. Alternatives to consider: Your student taking out additional federal loans in their name (if available), private loans (shop around for rates), or payment plans through the college.

When you say your credit isn't great, how bad we talkin? Because I got DENIED for parent plus with a 615 score n had to use my sister as the endorser. Be prepared for that possibility.

I spent HOURS trying to reach someone at Federal Student Aid when setting up my daughter's Parent PLUS loan last fall. The phone waits were ridiculous. I finally used a service called Claimyr (claimyr.com) that got me through to an actual human in less than 20 minutes. They have a video demo at https://youtu.be/TbC8dZQWYNQ that shows how it works. Completely worth it to get my questions answered about the endorser process and repayment options. The agent explained all the different repayment plans including income-contingent repayment which I didn't even know was an option for Parent PLUS loans.

PARENT PLUS LOANS ARE A TRAP!!!! The government lets you borrow UNLIMITED amounts with barely any credit checks and then CHARGES YOU 8% INTEREST while your kid is still in school! My wife and I are now $120,000 in debt for our daughter's education and barely making the minimum payments. PLEASE explore ALL other options before signing up for this predatory program!!!!!

One more thing nobody mentions - you gotta fill out the FAFSA every year to get approved for Parent PLUS each year. Don't assume you'll automatically get it all 4 years.

Since you mentioned being short $30K for freshman year, I'd strongly encourage you to talk to the financial aid office about whether this amount will be consistent for all four years. Many families don't realize that $30K per year means $120K+ in loans by graduation. With current interest rates, that could mean payments of over $1,400/month for 10 years after graduation. Financial aid officers can sometimes find additional institutional aid or work-study opportunities to reduce that borrowing need.

I just went through this process last year with my son! A few things that might help: 1) Definitely explore if your daughter can take out additional federal loans first - dependent undergrads can sometimes get more than the standard $5,500 if the parent is denied for PLUS. 2) Some schools have emergency aid funds or late-breaking scholarships that aren't widely advertised - worth asking about. 3) Consider if she could start at a community college for gen eds and transfer to save money, though I know that's not ideal if it's her dream school. 4) Payment plans through the school can sometimes help spread costs without interest if you can swing monthly payments instead of borrowing. The Parent PLUS route is definitely doable but as others mentioned, that interest really adds up over time. Good luck!