August 25, 2009

Can I repay the PLUS loan early? Are there penalties?

Posted in Parent PLUS Loans, The Financial Aid Process at 7:43 AM by Joe From Boston


Yes! You can repay the Parent PLUS Loan early without any penalties.

There are never any pre-payment penalties for Parent Plus loans. If you pay the loan in full you will not be responsible for any future interest, and you will not be charged with any penalties.

If only all loans were like this!

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3 Comments »

  1. sue laba said,

    My son is a freshman at Ball State, he decided to finish the fall semester there, but is thinking of transferring to purdue cal for the next semester.
    We took out a parent plus loan, because he is living on campus, if he attends purdue, he will live at home. since we won’t have the expenses of living on campus, how does that work for us? I’m not sure if what he receives in student loans will be enough and we may still have to help him. Can you give me instructions on how the transfer of the financial aid would work? and instructions on what steps I should take?

    thanks

    • Sue,

      Financial aid cannot be transferred. If he is accepted at the new school then this January you will submit the FAFSA to the new school and that school will award you a financial aid packages. That may include grants, scholarships and/or loans such as the Perkins or Stafford loans.

      If that is not enough money, then you will need to look into loans such as the Parent PLUS Loan or private loans to make up the difference.

  2. sue laba said,

    My son is a freshman at Ball State, he decided to finish the fall semester there, but is thinking of transferring to purdue cal for the next semester.
    We took out a parent plus loan, because he is living on campus, if he attends purdue, he will live at home. since we won’t have the expenses of living on campus, how does that work for us? I’m not sure if what he receives in student loans will be enough and we may still have to help him. Can you give me instructions on how the transfer of the financial aid would work? and instructions on what steps I should take?

    thanks


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