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Your rights as a Federal PLUS Loan borrower
As a borrower, you have the right to:
- Notification in writing if your loan is sold or transferred, showing the name, address and phone number of your loan’s new owner. You must direct all future correspondence to that new owner
- Deferment of repayment for a defined period if you qualify and request it from your loan holder. You must be aware of the dates your loan was disbursed because eligibility varies greatly from year to year
- Request a forbearance from your loan holder if you do not qualify for a deferment and are unable to make payments on your loan
- Prepay all or any part of the amount you owe without penalty
- A copy of your promissory note (may be an electronic copy)
- At least five years, but no more than ten years, to repay the loan under most circumstances.
Your responsibilities as a Federal PLUS Loan borrower
As a borrower, it is your responsibility to:
- Repay your loan and all accrued and/or capitalized interest according to the established repayment schedule.
- Use the loan proceeds only for the student’s educational expenses for the loan period certified by the college’s financial aid administrator. You will face prosecution if the funds are used for any other purpose.
- Stay in touch with the lender or holder throughout the life of the loan. You must immediately report any changes in status to the lender or current holder of the loan, including changes in name, address, employer, college or enrollment status.
- Promptly respond to any correspondence sent by the holder of the loan, college or ISAC.
Note: If you fail to repay your loan, it will default. This will result in serious consequences, which include damaging your credit rating.
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