Should I make Parent PLUS loan payments now or wait? Worried about next year's approval

You don't need to make payments during the in-school deferment to be approved for future Parent PLUS loans. Each year is a separate credit check - they just look for adverse credit history (things like 90+ day delinquencies, defaults, bankruptcy, etc.), not whether you're currently making payments on existing education loans that are in deferment. The new loans would be separate from your current one, though they'll all be part of your total debt-to-income ratio. As long as your credit hasn't deteriorated significantly by next year's application, you should be fine. The Parent PLUS loan credit check is actually less stringent than many other loans.

im in year 3 of parent plus loans for my daughter. they just keep adding up lol. never made a payment yet since shes still in school. got approved every year no problem even tho the total is scary now. just dont mess up your credit and youll be fine

In my experience (with three kids through college), it's better to make at least interest payments while they're in school, even though you don't have to. The loan still accumulates interest during deferment, and that interest gets capitalized (added to your principal) when repayment begins. This can significantly increase your total debt. As for approval - each year is a separate credit check, but they're mainly looking for major negative items. You won't be denied just because you have existing PLUS loans in deferment. My recommendation is to pay at least the interest if you can afford it, but don't worry about it affecting next year's approval.

Has anyone called the Federal Student Aid office about this? I've been trying for DAYS and can't get through to ask about Parent PLUS loans. Always on hold forever then get disconnected!! So frustrating when we're trying to do the right thing for our kids!

My biggest regret with Parent PLUS loans was not understanding how quickly they grow with interest! I deferred everything for 4 years, and by the time my son graduated, the balance was MUCH higher than what I originally borrowed. The approval process for subsequent years was easy, but now I'm dealing with payments that are way bigger than I expected. If you can afford it, make at least interest-only payments while your student is in school. You'll thank yourself later!

I've been a financial aid counselor for 15+ years. Here's what you need to know about Parent PLUS loans: 1. Each year's application is a separate credit check - they're looking for adverse credit history, not your debt-to-income ratio 2. Having existing PLUS loans in deferment won't hurt future approvals 3. HOWEVER, interest accrues during deferment and capitalizes later, which can significantly increase your total debt 4. Many parents don't realize they're also responsible for the loan origination fees (about 4.2%) which get deducted from the disbursement amount You have three options: - Pay nothing (riskiest financially, but won't affect future approval) - Pay interest only (prevents balance growth without full payments) - Make full payments (best financial option if affordable) For most families, making at least interest payments during school is the wisest approach.

dont u also have to consider if the interest is tax deductible? i thought i heard something about student loan interest being deductible even for parent plus. anyone know?

Thank you all so much for the helpful advice! I'm going to start making interest-only payments to prevent the balance from growing too much, but I'm relieved to know that having the loans in deferment won't hurt my chances for approval next year. This whole process is so confusing, but you've all made it much clearer!

As someone who just went through this process with my daughter's sophomore year, I wanted to add that it's also worth checking if your loan servicer offers any autopay discounts. Mine gives a 0.25% interest rate reduction if I set up automatic payments, which helps offset some of the interest accumulation. Even if you're just making interest-only payments during school, that small discount can add up over time. Also, keep good records of all your payments - you'll need them for tax purposes when claiming that student loan interest deduction!

Just wanted to chime in as someone who's currently in my third year of Parent PLUS loans! I was in the exact same boat as you freshman year - so worried about messing something up. Here's what I've learned: the approval process really is separate each year, and as long as you don't have major credit issues, you'll be fine. I've been making small interest payments (about $60/month) just to keep the principal from growing, and it's been manageable. One thing that helped me was calling my loan servicer early in the process to understand all my options - they were actually pretty helpful once I got through to someone. You're asking all the right questions, so you're already ahead of where I was! Your son is lucky to have a parent who's being so thoughtful about this process.