Parent PLUS loan repayment begin 60 days after the loan is fully disbursed for the year (i.e., March for a fall/spring loan).
There are
several repayment plans available. Your parent can contact their
loan servicer (a company that takes care of the billing and other services on Parent PLUS loans) to discuss which repayment plan works best for them. The Parent PLUS loan is assigned to a loan servicer by the U.S. Department of Education after the first disbursement is paid out. Your parent can find the correct toll free phone number for their loan servicer by logging in to the
studentloans.gov website with their FSA ID.
Parents can request a
deferment (a temporary postponement of loan repayment) by contacting their loan servicer.
It is important to understand that interest will continue to accrue on the Parent PLUS loan during deferment. Your parent may choose to pay the accrued interest while in deferment, or allow the interest to
capitalize when the deferment period ends.
Note: Capitalization is the process of taking the unpaid interest and adding it to the principal loan amount, causing the total loan debt to increase.
Related Article: How Long Does My Parent Have to Pay Back Direct Parent PLUS Loans?
