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. Borrowers can contact their loan servicer (a company that takes care of the billing and other services for PLUS loans) to discuss which repayment plan works best for them. The PLUS loan is assigned to a loan servicer by the U.S. Department of Education after the first disbursement is paid out. Borrowers can find the correct toll free phone number for their loan servicer by logging in to the studentaid.gov website with their FSA ID.
Borrowers 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 PLUS loan during deferment. Borrowers 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?
