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Question of the week

Q.: When does each type of FFELP loan officially enter repayment?

A.: Stafford, PLUS, and Consolidation loans enter repayment as follows:

• A Stafford loan enters repayment on the day following the last day of the grace period. See the Common Manual Subsection 10.4.A ("Stafford Loan Repayment Start Date").
  
  
• A PLUS (parent PLUS or Grad PLUS) loan enters repayment 60 days after the final disbursement of the loan. However, under the Higher Education Opportunity Act of 2008 (the HEOA, a.k.a. the reauthorization bill), a PLUS borrower can request a deferment as follows:
  
  In the case of a parent borrower, during the 6-month period beginning on the later of the day after the date the student for whom the parent borrowed drops below half-time enrollment, or, if the parent borrower is also a student, the day after the date the parent borrower drops below half-time enrollment.
  
  In the case of a graduate or professional student borrower, during the 6-month period beginning on the day after the date the student drops below half-time enrollment.
  
  See Section 428B(d)(1) of the Higher Education Act, as amended by the HEOA.
  
  
• A Consolidation loan enters repayment on the date the loan is disbursed. See the Common Manual Chapter 15 ("Federal Consolidation Loans"), Section 15.5 ("Repayment").

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