At what point does interest begin accruing on Grad PLUS?

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
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slawww
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At what point does interest begin accruing on Grad PLUS?

Postby slawww » Fri Apr 19, 2013 11:07 am

I'm trying to figure out when to accept my financial aid award. When does the money actually get disbursed? Does interest being to accrue as soon as the money is disbursed into my bank account, or when I make a payment for tuition? Thanks!

rwhyAn
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Re: At what point does interest begin accruing on Grad PLUS?

Postby rwhyAn » Fri Apr 19, 2013 11:13 am

The juice starts running the moment the loan is disbursed.

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slawww
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Re: At what point does interest begin accruing on Grad PLUS?

Postby slawww » Fri Apr 19, 2013 11:17 am

rwhyAn wrote:The juice starts running the moment the loan is disbursed.


Thanks! Also, what about the origination fee? I think it's 4%. So if I were to need $1000, would I have to actually take out 1400 because of that fee?

Johnny1607
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Re: At what point does interest begin accruing on Grad PLUS?

Postby Johnny1607 » Fri Apr 19, 2013 11:22 am

4% would be $1040, not $1400

rwhyAn
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Re: At what point does interest begin accruing on Grad PLUS?

Postby rwhyAn » Fri Apr 19, 2013 11:22 am

slawww wrote:
rwhyAn wrote:The juice starts running the moment the loan is disbursed.


Thanks! Also, what about the origination fee? I think it's 4%. So if I were to need $1000, would I have to actually take out 1400 because of that fee?


$1000 would cost you $1040.

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Ruxin1
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Re: At what point does interest begin accruing on Grad PLUS?

Postby Ruxin1 » Fri Apr 19, 2013 11:25 am

The TYRANNY of 7.9% interest.

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slawww
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Re: At what point does interest begin accruing on Grad PLUS?

Postby slawww » Fri Apr 19, 2013 11:55 am

Johnny1607 wrote:4% would be $1040, not $1400


That's what I meant, lol, but you get the point.

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rinkrat19
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Re: At what point does interest begin accruing on Grad PLUS?

Postby rinkrat19 » Fri Apr 19, 2013 11:56 am

slawww wrote:
Johnny1607 wrote:4% would be $1040, not $1400


That's what I meant, lol, but you get the point.

Yes, they increase the loan amount by the origination fees.

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slawww
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Re: At what point does interest begin accruing on Grad PLUS?

Postby slawww » Fri Apr 19, 2013 12:11 pm

rinkrat19 wrote:
slawww wrote:
Johnny1607 wrote:4% would be $1040, not $1400


That's what I meant, lol, but you get the point.

Yes, they increase the loan amount by the origination fees.


Gotcha, thanks!

qwertyboard
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Re: At what point does interest begin accruing on Grad PLUS?

Postby qwertyboard » Fri Apr 19, 2013 5:56 pm

I would rather eat chicken noodle soup and crackers every night during LS if that way I could avoid taking out 1k in Gradplus loans. 4%? that's ridiculous...




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