Paying GradPlus Loan?

Discussion in 'Financial Aid' started by tennispro, Jun 3, 2008.

  1. tennispro

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    Here is a question. I took out 12K in GradPlus loans during my 1st year of med school. This amount is now in deferment (i'm in my 3rd year of med school) but has turned into 13.5K already. I recently was awarded a 6K scholarship which is now in my bank account. I want to take this money and put it toward the GradPlus loan. Will this trigger repayment or can I use this years scholarship and next years scholarship to really take a bite out of this 8.5% monster..

    Bottom line: Will making a payment on a GradPlus loan cause the loan to go into repayment..?
     
  2. mshheaddoc

    mshheaddoc Howdy
    Moderator Emeritus 15+ Year Member

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    No this will not cause the repayment of the loan but call and ask the lender. Usually with federal loans there are NO penalties for pre-payment.
     
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  3. rgerwin

    rgerwin Senior Member
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    No it won't. I would also just like to point out that your Gradplus loan is super small. Hardly a monster. if that's true then every private school med student with no grants should jump off a cliff.
     
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  4. tennispro

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    I did call and found out that any payments even toward your principal would not trigger payments.. I know its a small amount and my total debt from loans is probably going to be near 200k but i'd rather take money at 6.8% and use it to pay down loans at 8.5% which would save me 1.7% per year on 12k... $204 per year.. for just some financial manuvering.. I think its worth it
     

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