Parent and Graduate PLUS Loan Repayment Options
Parent and Graduate PLUS Loans have no grace period and loan repayment begins immediately after the entire loan has been paid to you, your co-borrower and/or the school. Borrowers have the option of deferring repayment until after the student graduates or their enrollment drops below half time. Loan payments can also be deferred for another six months after the student leaves school. Deferment is not automatic, and the borrower must contact their lenders or loan servicers to request it.
Extended Repayment Plan
If you have in excess of $30,000 in outstanding federal Stafford and/or PLUS loans with one or more lenders, and all of your loans were established after Oct. 7, 1998, you may be eligible for an extended repayment plan.
With an extended repayment plan, you may:
- Lower your monthly payment by up to 40%
- Maintain borrower incentives such as interest rate reductions and principal rebates
- Maintain full deferment eligibility
- Pay no fees and incur no credit check
Anytime you extend your repayment term, you will increase the overall interest amount you pay over the life of the loan.
How to Apply
Borrowers may apply for an extended repayment plan during their grace periods, once the loans have entered repayment, or during periods of deferment or forbearance. Just contact your lender(s) or loan servicer(s) and request the extended repayment plan. Make sure to contact all of your lenders if you have loans with more than one.
Temporary Financial Hardship Forbearance
If you are experiencing temporary financial hardship, you may delay your loan payments.
- Forbearance must be applied for each year.
- In some cases, forbearance is granted at the discretion of the lender.
- You must continue to make all necessary loan payments until notified by your loan servicer that forbearance has been approved.
- The forbearance period is excluded from the period of repayment. So, if your repayment period is 10 years, the 10-year period will not begin until you are making loan payments.
- Interest will continue to accrue on your loan during periods of forbearance and deferment, increasing the total amount you need to pay back if it is not paid during the forbearance or deferment period.
Download a Deferment or Forbearance Form
Let Us Help
If you need to postpone or reduce your payments, please contact our customer service center to speak with a student loan specialist. We're available at 1-800-762-1001, Monday through Thursday from 8am to 7pm and Friday from 8am to 6 pm Eastern time. You can also contact your loan servicer.