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Repay your Direct PLUS Loan

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.

Payment plans

Standard

Minimum monthly payment is $50, but this amount may be higher depending on loan balance
Maximum repayment period of 10 years

Graduated

Begins with lower payment amounts 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 amounts based on gross income and family size
Payments cannot be lower than your monthly interest amount
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.
Estimate payment under the income-based repayment plan.

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.

If you ever have difficulty repaying your loan, contact your loan holder immediately, as you have options, including a change to your repayment plan, deferment, and forbearance!