How to calculate Parent PLUS loan monthly payments after second semester?

there's no "equation" really, it depends on wat repayment plan u choose. standard repayment is 10 years, thats what most ppl get put on automatically. monthly payment = (total loan amount + interest) divided by 120 payments. interest rate for 2024-25 PLUS is like 6.57% i think?

For Parent PLUS loans, you're looking at a few different repayment options, but the basic calculation for the Standard Plan is: Monthly Payment = [P × r × (1 + r)^n] ÷ [(1 + r)^n - 1] Where: - P = principal loan amount - r = monthly interest rate (annual rate ÷ 12) - n = total number of payments (120 for standard 10-year) For example, with a $20,000 loan at 6.57%: - Monthly interest rate = 0.0657 ÷ 12 = 0.005475 - Payment = [$20,000 × 0.005475 × (1.005475)^120] ÷ [(1.005475)^120 - 1] = about $228/month Parent PLUS loans are eligible for Standard, Graduated, Extended, and Income-Contingent (if consolidated) repayment plans.

we took out plus loans for both our kids and lemme tell you, the payments can be BRUTAL if youre not prepared!!! standard plan was way too much for us, had to switch to graduated where it starts lower then increases. just be ready cuz they hit you with those bills quick after graduation!!!

The Federal Student Aid website has a Loan Simulator tool that can give you personalized estimates: https://studentaid.gov/loan-simulator/ It's much easier than trying to calculate everything yourself, especially for income-driven plans where the formula gets very complex. You'll need to log in with your FSA ID to see your actual loan details. If you're having trouble reaching someone at FSA to help navigate this, I'd recommend trying Claimyr (claimyr.com). They helped me get through to a live agent when I was trying to figure out my repayment options. They have a video demo showing how it works: https://youtu.be/TbC8dZQWYNQ

What everyone's missing is that PLUS loan repayment starts 60 days after FINAL disbursement, not necessarily end of semester. If your school does weird disbursement timing, it could be earlier or later than you expect. Call your loan servicer directly to get the exact date. Made that mistake and got a surprise bill!

I've been paying Parent PLUS loans for 4 years now. One thing I wish someone told me is that you can request to switch to graduated or extended repayment BEFORE payments begin. Don't wait until you're struggling! The standard 10-year is the default, but you need to actively request a different plan. Also, making payments during the 6-month period after disbursement but before required repayment starts will reduce your principal and save you money on interest in the long run. Even small payments help!

i got completely screwed by plus loans they dont tell u tht the interest accumulates the WHOLE TIME ur kid is in school. by the time my daughter graduated a $40k loan was already at $46k+ before i even made a single payment!!! the whole system is a scam

To answer your follow-up question about income-contingent repayment for Parent PLUS loans: you would need to consolidate your PLUS loans into a Direct Consolidation Loan first. Then you could apply for Income-Contingent Repayment (ICR), which is the only income-driven plan available for Parent PLUS loans. Under ICR, your payment would be the lesser of: 1. 20% of your discretionary income (adjusted gross income minus 100% of poverty guideline) 2. What you would pay on a 12-year fixed payment plan, adjusted according to income Since your income varies, they would use your most recent tax return to calculate the initial payment, and you can request recalculation if your income changes significantly.

When you consolidate Parent PLUS loans, the new interest rate will be the weighted average of your original loans' rates, rounded up to the nearest 1/8th of a percent. So it's typically very close to what you were already paying. The term length can change based on the repayment plan you select, ranging from 10-30 years depending on loan balance and plan type. Consolidation does reset any progress toward forgiveness programs, but since Parent PLUS loans have limited forgiveness options anyway, this is less of a concern. One benefit: consolidation can give you access to ICR, which caps payments at 20% of discretionary income and offers forgiveness after 25 years of payments.