When are Federal Stafford Loans repaid?
Repayment of Federal Stafford Loans begins six months after either graduation, when a student leaves school, or drops below half-time enrollment. The length of repayment and monthly payment amounts depends on the outstanding loan balance, the interest rate and repayment policies. Federal Stafford Unsubsidized Loan borrowers with deferred interest will have the interest capitalized at the end of the in-school or grace period. When are Federal PLUS Loans repaid? Parents begin repaying the loan, principal and interest, 60 days after the final loan disbursement is made. Interest on PLUS Loans begins to accumulate at the time the first disbursement is made. Can Federal Stafford Loan payments be deferred? Payment is deferred automatically if a student is enrolled for at least six credits (half-time status). Payment may also be deferred if the borrower enters into a deferrable situation and requests deferment of payment by submitting appropriate documentation to the loan servicer. Deferments,
