Trends and Issues

Question of the week

Q.: What is the first payment due date for each type of FFELP loan?

A.: The first payment due date for Stafford, PLUS, and Consolidation loans is as follows:

• Per the Common Manual, Subsection 10.5.A, the first payment due date for a Stafford loan must be no later than:
  • 60 days after the beginning of the repayment period.
  • 60 days after the last day of a deferment or forbearance period, unless the borrower makes a prepayment during this period that advances the due date.
  • 60 days after the last day of a post-deferment grace period, unless the borrower makes a prepayment during this period that advances the due date.
  • 75 days after the date the lender learns that the borrower's loan has entered repayment without the lender's knowledge (late notification that the borrower ceased at least half-time enrollment).
    
    
• Per the Common Manual, Subsection 10.5.B, the first payment due date for a PLUS loan must be no later than:
  • 60 days after the date the loan is fully disbursed.
    [Note that in last week's Question of the Week, Shoptalk Online mistakenly stated that a PLUS loan enters repayment 60 days after the final disbursement of the loan; actually, a PLUS loan enters repayment upon final disbursement of the loan (per the Common Manual, Subsection 10.4.B).]
  • 60 days after the last day of a deferment or forbearance period, unless the borrower makes a prepayment during this period that advances the due date.
  • 60 days after the last day of a post-deferment grace period, unless the borrower makes a prepayment during this period that advances the due date.
  • In the case of a late notification, 75 days after the date the lender learns the student withdrew from school before the loan was fully disbursed — or, in the case of a loan for which the borrower previously qualified for deferment, 75 days after the date the lender is notified that the borrower no longer qualifies for that deferment.
    
    
• Per the Common Manual, Subsection 15.5.A, the first payment due date on a Consolidation loan must be no later than:
  • 60 days after the date of the last disbursement that pays the underlying loans in full.
  • 60 days after the last day of a deferment or forbearance period, unless the borrower makes a prepayment during this period that advances the due date.

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