In this guide, we cover what you need to know about Parent PLUS loan repayment, your options, and why refinancing through a private lender could be a good option for your finances.
When does Parent PLUS loan repayment begin?
Colleges with a two-semester academic calendar will receive two loan disbursements from lenders. The first disbursement is in August or September for the fall semester; the second in January or February for the spring semester.
You may want to wait until your child is out of school to start making payments. In that case, you can request deferment. Deferment means no payments are required while your child is enrolled (half time or more) in school, plus six months after they graduate, leave school or drop below half-time enrollment.
However, in Parent PLUS loan deferment, interest will accrue. With this in mind, you could consider:
- Making interest-only payments during deferment, or
- Having the accrued interest added (capitalized) to your loan principal after deferment.
Interest-only payments during deferment keep interest from accruing while your child is in school.
Parent PLUS loan repayment options
When you start paying back your Parent PLUS loan, you'll make payments to your loan servicer. They will contact you prior to your first repayment date with information on repayment options, which can vary depending on when the loan originated.
All Parent PLUS loan borrowers are eligible for the Standard Repayment Plan, with fixed payments each month for up to 10 years.
If you borrowed prior to July 1, 2026, you can also choose from:
- Graduated Repayment: Your payments start lower, increasing roughly every two years over a 10-year period.
- Extended Repayment: You have 25 years to pay off the loan. You can make fixed or graduated monthly payments. To qualify, you must have over $30,000 in Direct Loan debt.
- Income-Contingent Repayment (ICR) plan: Your payments are determined by your income. However, you must consolidate your federal loans prior to July 1, 2026, in order to be eligible.
- Income-Based Repayment (IBR) plan: If you currently have an ICR plan (or enroll in one prior to July 1, 2026), you can switch to IBR after July 1, 2026. You'll be automatically switched to IBR on July 1, 2028.
For Parent PLUS loans taken after July 1, 2026, you will only be able to access the Standard Repayment Plan.
Can you refinance Parent PLUS loans?
Yes, you can refinance Parent PLUS loans through private lenders. If you have strong credit and a good income, you could qualify for one or both of these benefits:
- Lower interest rates: Refinance loan interest rates are determined on creditworthiness, so you could potentially find a lower rate if your credit is in good standing.
- More favorable repayment terms: Refinancing gives you more options for repayment, which is helpful if you want to pay off your loan faster or slower than the standard 10-year repayment plan. Depending on the lender, you could choose a repayment length of 5, 7, 10, 15 or 20 years.
Keep in mind if you refinance, you'll lose access to federal deferment and forbearance programs.
The federal government does not offer refinancing for their loans, only consolidation.
Can you transfer repayment responsibility to your child?
You can only transfer repayment responsibility to your child on Parent PLUS loans if your student borrows from a private lender and uses the funds to pay off your Parent PLUS loan.
More information
Are you interested in refinancing your Parent PLUS loan? An Education Refinance Loan for Parents through Citizens could lower your interest rate and/or simplify repayment by combining multiple Parent PLUS loans into a single loan.†