Paying on Parent Plus Loans

[FamilyMan]

I have two children who finished their time at college within the last year. I took out Parent Plus student loans for each. Those loans will start coming due next month when the Covid-19 forbearance expires. One child has a large loan total, and the other a small one. I will be collecting from both to make my monthly payment (they agreed to be responsible for payback of the loans, but I am sending in the payment). Are any of you here in the same boat, and if so have you figured out how to make the online payments in such a way that part goes to the loan (Loan A, Loan B, etc.) associated with each kid rather than being paid in sum on just one loan? Thanks.

 

[MarvB]

If I’m reading this correctly you had taken out two loans (A&B mentioned)? If so, each should have its own acct number, associated interest rate, due date, payment program type, etc. even if they are billed by the loan servicer on the same date as one invoice, the payment will be split between the two loans and you should be able to go into each acct separately yo look up outstanding balances, payment histories, etc.

If I misread, just give your service provider a call, they’re typically pretty helpful

 

[belshawelk]

I am right with you on this/ have two in college. One loan is ugly. ( last year law school)/ She will end up paying once she get settled. The other loan will also be large by the time she finishes. 2nd year. That one is all mine as I am paying for undergrad for the girls.

I am going to be paying minimum on lowest interest loan and hammering the higher interest loan. Yu can decide where the money goes.

Dont be surpirsed if they extend the payments again. Biden and the left need votes. Its right about the time.

 

[belshawelk]

The other thing I thats really important that you pay out of a college savings plan. Even if you don't have one now start it before the payments. There are great tax advantages. Put your money into the fund and then have the fund pay out.

Every dollar you can get back form Uncle Sam the better.

 

[Farmerj]

You can sign into NelNet and go into the accounts and apply it to the loans how you want. All A or B, or any distribution you want.

I have to do that with a consolidated loan with my ex-wife otherwise I end up paying on loans I’m not even responsible for.

 

[TheGrayRider]

August 2,2022 business article:​

Household debt tops $16 trillion for the first time, fueled by higher inflation and interest rates​

Household debt climbed past $16 trillion in the second quarter for the first time, as soaring inflation pushed up housing and auto balances, the New York Federal Reserve reported Tuesday.

The collective American IOU totaled $16.15 trillion through the end of June, good for a $312 billion — or 2% — increase from the previous quarter. Debt gains were widespread but particularly focused on mortgages and vehicle purchases.

 

[Gellar]

Make sure any extra payment is going to the principal. I remember on my loans I didn’t check that box a few times and the extra would just be applied to the next payment and not the principal

 

[FamilyMan]

Thanks everybody.