Repayment and Interest:
Grad PLUS Loans must be repaid. Normally, repayment begins within 30 days from the last disbursement of the loan. However, graduate borrowers will be provided an in-school deferment while enrolled at least half time to delay your payments. You have the option of making interest payments while in school or we will add any unpaid interest during the in school period to the principal balance at the start of repayment (capitalization). You may also request a 6-month forbearance at graduation to align your Stafford and Grad PLUS loan payment start dates.
Repayment of your loan is initially set up as using a standard plan; you pay the same amount each month. National Education offers other payment plans to help fit your budget. A change in payment plan can reduce your initial payments by up to 40%.
Alternative payment plans, deferments and forbearance are available to help you manage the repayment of your Grad PLUS Loan.
Tips to remember:
- The student is the borrower and is responsible for paying back the loan.
- Grad PLUS Loans are expected to be repaid within ten years.
- The interest rate is fixed at 8.5% for Grad PLUS Loans.
- Repayment begins within 30 days after the final disbursement of loan funds.
- Grad PLUS Loans do not have a grace period but you repayment can be delayed with an in school deferment while you are enrolled in school at least half-time.
- There is no penalty for early repayment; you can pay more than the monthly amount if you wish.
- National Education offers alternative payment plans.
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