05.07.08 | New Parent PLUS Loan Limits
Beginning July 1, 2008, HR 5715 passed by Congress will allow parents to choose to defer payments on a PLUS loan until six months after the date the student ceases to be enrolled at least half time. Accruing interest could either be paid by the parent borrower monthly or quarterly, or be capitalized quarterly.
Special Provision for Parents Delinquent on Mortgage Payments
The bill would allow lenders to consider parents eligible for PLUS loans even if, during the period January 1, 2007, through December 31, 2009, the parents are or were:
* No more than 180 days delinquent on a mortgage payment on their primary residence
* No more than 180 days delinquent on any medical bill payments
* No more than 89 days delinquency on the repayment of “any other debt”