Repay Your Direct PLUS Loans for Graduate and Professional Students
Repayment begins the date the loan is fully disbursed, with your first payment due no more than 60 days later.
- You can request a deferment while in school.
- For loans first disbursed on or after July 1, 2008, you can request a deferment while you are in school and up to six months after you graduate, withdraw, or drop below half-time enrollment.
The maximum repayment period is 10 years.
Payments are expected each month.
The minimum monthly payment is $50, but this amount may be higher depending on your loan balance.
You may prepay your loan at any time without penalty. Prepayment may substantially reduce the amount of interest you pay.
Standard
- Minimum monthly payment is $50, but may be higher depending on balance.
- Maximum repayment period of 10 years
Graduated
- Begins with lower payments that increase over time
- Maximum repayment period of 10 years
- More interest accrues over the life of the loan because the principal balance decreases at a slower rate.
Income-Contingent for Direct PLUS Loans
- Adjusted payment amount based on gross income and family size
- Eligibility and payment amount adjusted annually
- More interest accrues over the life of the loan because the principal balance decreases at a slower rate.
- If you do not repay your loan after 25 years, the unpaid portion is forgiven. You may have to pay income tax on any amount forgiven.
Income-sensitive for Federal PLUS Loans
- Adjusted payment amounts based on gross income
- Payment is the greater of your monthly interest amount or 4 percent of your gross monthly income
- Eligibility and payment amount verified annually
- More interest accrues 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
- Adjusted payment amounts based on income and family size
- Payment is not more than 15 percent of the amount by which your adjusted gross income exceeds 150 percent of the poverty line for your family size
- Payments 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 is forgiven
- Very few borrowers will have a remaining balance after 25 years.
- The amount forgiven may be taxable.
Extended
- 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.