I took out a Parent Plus loan for my DS to attend school about 3 years ago. When I enrolled in school myself, 2 years ago it automatically went into deferment. I got my first degree in the spring of '08 and I am enrolled in the fall quarter.
I got a call from Sallie Mae today saying that I was in default on my PP loan and it was 2 months in arrears + late charges. I was like I told them that I was still enrolled and that I start back on Aug 22. First off, the guy said that I had been out of school for 6 months. When I told him that May-Aug was only 3 months, he changed his story and said that they cannot be deferred while the parent is a student, that I would have to put it in forbearance, and then he asked me if I wanted to do that. I told him no, that I would just start making payments. He got mad and slammed the phone down in my ear. I am so confused. I am afraid that this is going to bite me in the butt and get my aid for the fall revoked.
I don’t want to waste my forbearance because I might need it some day, but I also can’t really afford to begin payback just yet. I am already in financial ruin, this may just be the proverbial straw.

If salliemae is calling you, then you are definately not in default, only deliquent. It takes 270 days of non payment for a loan to go into default. So you FA is fine.

I did some googling and PP loans are deferable if the parent is in school. I tried pulling up a SM Plus MPN to check the terms of the prom note, but this computer wont let me do it.

I would be calling SM back and making major waves on the last CSR that hung up on you .

Thanks Lynn, I feel better now.

Ugh, they called again today. They said that there is no grace period for the Plus loans, so I have to pay every time classes let out for the term. BS. They also said that my school has not notified them of my enrollment and that I will continue to have to pay until they do so, unless I request forbearance. I guess I will have to look into that because I now owe them 3 months of payments.

Yeah thinking back this is correct. You can get the in school deferment while you are in school but there are no grace periods ever for PLUS loans.

Does your school participate in the National Student Clearinghouse? If they don't, it's up to you to get the deferment papers filled out by an official at the school.

Another post mentioned that plus loans taken out after July 1st could be deferred until 6 months after graduation. Is this true?

From http://studentaid.ed.gov/PORTALSWebApp/stu...sp?tab=funding:

When do my parents begin repaying the loan?
For PLUS loans made to parents that are first disbursed on or after July 1, 2008, the borrower has the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or wait until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled on at least a half-time basis.