Federal Direct PLUS Loans are repaid to a federal servicing agency. The servicer is responsible for billing, collection and management of loan repayment, and deferment/forbearance processing.
The servicer assigned to your loans will contact you to provide important information about your repayment terms. Make sure your school and servicer have your most current mailing address and contact information. It is your responsibility to notify your school and servicer if your mailing address and contact information changes.
If you do not know which agency services your loans, visit the National Student Loan Database System (NSLDS) to determine your servicer and obtain their contact information.
Interest will begin to accrue from the time the loan is disbursed. If a deferment is granted, the borrower will be sent quarterly interest statements and will have the option of paying the interest as it accrues. Unpaid interest will be capitalized and due at the end of the deferment period.
Repayment begins within 60 days after the loan is fully disbursed. For loans disbursed after 7/1/08, borrowers have the option of deferring repayment based on the enrolled status of the student on whose behalf a Federal PLUS Loan was obtained. Specifically, PLUS Loan borrowers may defer repayment while the student on whose behalf the loan was obtained is enrolled on at least a half-time basis, and during the six-month period after the dependent student ceases to be enrolled on at least a half-time basis. Borrowers must contact their federal servicer to request deferment.
Interest will accrue during the deferment period. The borrower will be sent quarterly interest statements and will have the option of payment the interest as it accrues. Unpaid interest will be capitalized and due at the end of the deferment period.
There are several repayment plans that are designed to meet the different needs of individual borrowers. The amount you pay and the length of time to repay your loans will vary depending on the repayment plan you choose. Go to Repayment Plans and Calculators for more information about the various repayment plans and to calculate your estimated repayment amount under each of the different plans.
Although you’re asked to choose a repayment plan when you first begin repayment, you might want to switch repayment plans later if a different plan would work better for your current financial situation. Y ou can change plans any time as long as the maximum repayment period under your new plan is longer than the time your Direct Loans have already been in repayment.
Postponing Loan Repayment
If you are having difficulty repaying your loans, take advantage of your options to postpone loan repayment. View details of the options available and the application process in our Deferment/Forbearance section.
Forgiveness and Cancellation
You must repay your loans even if you don’t complete your education, can’t find a job related to your program of study, or are unhappy with the education you paid for with your loan. However, certain circumstances might lead to your loans being forgiven, canceled, or discharged. View details in our Cancellation/Forgiveness section.