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Repay your Grad PLUS Loan
- Repayment begins the date the loan is fully disbursed, with the first payment due no more than 60 days later.
- The maximum repayment period is 10 years.
- Payments are expected each month.
- The minimum monthly payment is $50, but may be higher depending on your balance.
- You may prepay your loan at any time without penalty. Prepayment may substantially reduce your interest costs.
Payment plans
- Standard:
- Minimum monthly payment is $50, but may be higher depending on balance
- Maximum repayment period of 10 years
- Graduated:
- Begins with lower payment amounts that increase over time.
- More interest will accrue over the life of the loan because the principal balance decreases at a slower rate.
- Income-sensitive:
- An adjusted payment amount based on gross income
- Payment will be the greater of your monthly interest amount or 4 percent of your gross monthly income
- Eligibility and payment amount verified annually
- More interest will accrue over the life of the loan because the principal balance decreases at a slower rate.
- Income-based:
- Available for payments made on or after July 1, 2009
- An adjusted payment amount based on income and family size
- Payment will not be more than 15 percent of the amount by which your adjusted gross income exceeds 150 percent of the poverty line for your family size
- Eligibility re-evaluated annually
- More interest may accrue over the life of the loan because the principal balance decreases at a slower rate.
- Any outstanding loan balance after 25 years will be forgiven
- Very few borrowers will have a remaining balance after 25 years.
- The amount that is forgiven may be taxable.
- Available to new borrowers on or after October 7, 1998, who have a minimum balance of $30,000 in loans
- Payment amounts can be either fixed annually or graduated
- Maximum repayment term is 25 years
- More interest may accrue over the life of the loan because the principal balance decreases at a slower rate.
- If you ever have difficulty repaying your loan, contact your loan holder immediately, as you have options, including deferment and forbearance!
