Solutions for PLUS loan repayment problems
You may experience financial difficulty, and your loan holder offers options that temporarily reduce or suspend your monthly payment. When experiencing trouble making payments, you should contact your loan holder immediately to check on a possible deferment or forbearance. Continue making your payments until you receive written notification that deferment or forbearance has been granted.
A deferment is a period of time during which your loan holder suspends your regular payments.
- You are responsible for the interest that accrues during the deferment period.
- Your loan holder must determine your eligibility for any of these deferments.
- In most cases, to apply for a deferment, you must complete the appropriate form with all required documentation and return it promptly to your loan holder.
Forbearance is a period of time during which your loan holder temporarily reduces or suspends your regular payments.
- You may request forbearance if you are willing but unable to make your full payment.
- You are responsible for the interest that accrues during the forbearance period.
- You may pay the interest as it accrues or allow it to capitalize.
- Capitalized interest is applied to the principal balance and may result in a higher monthly payment upon conclusion of the forbearance period.
If you die or the student for whom you borrowed the loan dies, your Federal PLUS loan obligation will be cancelled. Your loan also may be cancelled in other situations. Learn more. Generally, federal student loans may not be cancelled or discharged due to bankruptcy.