At what point does interest begin accruing on Grad PLUS? Forum

[slawww]

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]

The juice starts running the moment the loan is disbursed.

[slawww]

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]

4% would be $1040, not $1400

[rwhyAn]

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.

[Ruxin1]

The TYRANNY of 7.9% interest.

[slawww]

4% would be $1040, not $1400

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

[rinkrat19]

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.

[slawww]

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]

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...