PLUS Loan Checks, Interest Rate, Repayment
PLUS loan disbursements always come in the form of a paper check from the lender payable to the parent borrower and Richland College. The parentborrower has to come to Richland College (with a photo ID) and pick up their PLUS loan checks. The checks have to be endorsed by Richland College at the Business Services office. If the parent borrower cannot pick up the check, the unendorsed check can be mailed to them. For security reasons, the check will be mailed without the college's endorsement. The parent borrower will have to come to the campus in person (with a photo ID) and have the check endorsed by Business Services. Please contact Business Services at 972-238-6206 to schedule an appointment to have the check endorsed.
The interest rate on PLUS Loans could change each year of repayment but does not exceed 9%. For July 1, 2006 to June 30, 2007 , the interest rate for the PLUS Loans in repayment is 8.5%. Interest rates are adjusted each year on July 1st. Parents will be notified of interest rate changes throughout the life of their loan. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full.
Generally, repayment must begin within 60 days after the loan is fully disbursed. There is no grace period for these loans. This means interest begins to accumulate at the time the first disbursement is made. Parents must begin repaying both principal and interest while the student is in school. Under certain circumstances, parents can receive a deferment or forbearance on their loan, as long as it is not in default. Generally, the same deferment or forbearance provisions that apply to Stafford Loans also apply to PLUS Loans. Since PLUS Loans are unsubsidized, however, parents will be charged interest during periods of deferment. If they don't pay the interest as it accrues, it will be capitalized.