Parent Loan Repayment
Repayment begins 60 days after the funds are fully disbursed, and the repayment term is up to 10 years. Graduate students may defer repayment while they are in school. There is no six-month grace period as there is with the Stafford Loan program. However, the Ensuring Continued Access to Student Loans Act of 2008 (PL 110-227), ECASLA, added the option for parents to defer payments on the Parent PLUS loan while the undergraduate student on whose behalf they borrowed the PLUS loan is in-school and for a six-month grace period after the student graduates or drops below full-time enrollment. This change is effective for Parent PLUS loans first disbursed on or after July 1, 2008. (Payments can also be deferred if the parents are themselves enrolled in college. They will need to submit an application for an in-school deferment.) Note that since the interest on the PLUS loan is not subsidized, it continues to accrue while deferred and is capitalized when the loan enters repayment.
Under certain circumstances, parents can receive a deferment on their loans. If the parent temporarily canít meet the repayment schedule then he or she can also receive forbearance on their loan, as long as it isnít in default. During forbearance, their payments are postponed or reduced.
Generally, the conditions for eligibility and procedures for requesting a deferment or forbearance apply to both Stafford Loans and PLUS Loans. However, since all PLUS Loans are unsubsidized, your parents will be charged interest during periods of deferment or forbearance. If they donít pay the interest as it accrues, it will be capitalized (that is, added to the principal amount of the loan, and additional interest will be based on that higher amount).
Below is a calculator that can used to determine the total cost of a parent loan.