Parent PLUS Loan Deferment: What It Is and How to Pause Payments

Parent PLUS Loans are education loans that help you pay for your child’s school costs.When you get a Parent PLUS Loan, you’re assigned a loan servicer and must start making monthly payments immediately.Even though the loan is for your child’s education, you’re taking on the debt as your own.The loan is in your name, and you — not your student — are responsible for repaying the debt.

If you’re considering borrowing a Parent PLUS Loan or already have one, learn how to defer payments or access various repayment options, if needed.When do Parent PLUS Loan payments start? Generally, your first payment for a Parent PLUS Loan is due once the loan is completely paid out.As with other types of federal financial aid, there are usually two disbursements for Parent PLUS Loans.  The first disbursement is usually in the fall academic season, and the second is in the following spring.As a result, there’s a good chance your scheduled loan repayment will start during, or after, the spring semester.

Can you defer Parent PLUS Loans? Yes, a Direct PLUS Loan for parents allows repayment deferment.Forbearance is also possible on Parent PLUS Loans.Generally, forbearance is requested when you experience a short-term financial hardship and can’t make your student loan payment.  Interest accrues while the forbearance lasts, and you’re expected to begin making payments at the end of the period.Loan deferment is sometimes the result of choosing to hold off on making payments until after your child is no longer attending school at half- or full-time enrollment.

This is called in-school deferment.You can also access a six-month grace period starting from the official date your child dropped below half-time enrollment.  While some federal student loans don’t accrue interest during deferment, Parent PLUS Loans don’t have that benefit.No matter the situation, interest continues accruing on Parent PLUS Loans, whether you enroll in deferment or forbearance to put off making your payments immediately.How to qualify for Parent PLUS Loan deferment There are two main ways to qualify for Parent PLUS Loan deferment: While your student is enrolled in college.

Your undergraduate student must be enrolled at least half-time in school.You can also seek deferment for the six months after the child graduates or drops below half-time enrollment.When you’re a student enrolled at least half-time.If you enroll in school, even if you get other federal student aid, you can put off making payments on your federal Parent PLUS Loans and other Direct Loans.  Usually, you’ll need to apply for Parent PLUS deferment.

You can do this when you submit information to your child’s school as part of filling out the Free Application for Federal Student Aid (FAFSA).Additionally, you can fill out a separate application on StudentAid.gov.What happens when loans are put in deferment? Once the loans are disbursed, they begin accruing interest.During deferment, interest continues to accumulate on the loan.

After the grace period, the accrued interest is added to the loan balance if interest-only payments weren’t made while loans were deferred.When entering repayment, you might see a higher total balance and make payments on that higher amount.You can choose to make interest payments while your loans are in deferment to avoid having the accrued interest capitalized on your loan account.Why parents might want to defer payments It might make sense to defer student loan payments on debt related to your child’s education, depending on your situation.

For example, you may be planning to go back to school or working on repaying your own student debt.In these situations, you might not have the money to make PLUS Loan payments right now.It might make sense to defer until more money is available to handle additional loan payment amounts.In some cases, parents may also choose to defer payments while deciding on a long-term repayment strategy.

How to defer Parent PLUS Loans Realize that Parent PLUS Loans aren’t automatically deferred, like other types of student loans.You have to request a deferment.Here’s how to do it: Complete the Parent PLUS Borrower Deferment Request provided by the U.S.Department of Education.

Send the completed form to your Parent PLUS Loan servicer.You can find your servicer by logging in to your StudentAid.gov account.Check with your child’s school to determine if you can submit your deferment request while filling out a Direct PLUS Loan Request.Deferment alternatives for parent borrowers Just because you can defer doesn’t mean it’s a good option for you.

Depending on your and your student’s situation, there might be other choices, especially if your personal finances need relief from Parent PLUS Loan payments.Change your repayment plan Your repayment options depend largely on when you borrowed or consolidated your Parent PLUS Loans.In the past, consolidating Parent PLUS Loans could open the door to income-driven repayment plans and Public Service Loan Forgiveness (PSLF).Parents who completed the necessary consolidations by June 30, 2026, may retain those benefits.

In which case, you'll need to explore the IDR options available to you.New Parent PLUS borrowers, as well as existing borrowers who take out a new Parent PLUS Loan or consolidate them in the future, will lose access to all income-driven options, making it even more important to weigh your options before taking action.If you don't qualify for an IDR plan, you can still switch to an extended or graduated plan to lower your monthly payment.Keep in mind that while these plans can make payments more manageable, they'll typically increase the total amount of interest you pay over the life of the loan.

Shift the loan payments to your child Ask your student to make Parent PLUS payments.You’re still legally responsible for the loan, but you can make arrangements with them so they cover the loan payments.This can be an option if your child can reasonably afford to make some payments, and you want to exhaust federal options instead of turning to private student loans.Another option is to refinance the PLUS Loan to your child so the account is under their name.

Since this process converts the loan to a private student loan, you’ll lose access to federal programs and benefits.Refinance in your name Finally, you can also refinance the debt in your own name to pay off your Parent PLUS Loans.If you refinance, you'll permanently lose access to all federal student loan benefits, including any income-driven repayment options, forgiveness programs, and federal protections.That said, refinancing may make sense for some Parent PLUS borrowers.

If you already consolidated before the June 30, 2026 deadline, and still have access to IDR plans or PSLF, refinancing would cause you to give up those valuable benefits.However, if you're a new Parent PLUS borrower — or you lose access later because you borrow again or consolidate — refinancing may be worth considering if you can qualify for a lower interest rate or better repayment terms.Generally, refinancing in your own name can be an option if your hardship in making payments is a short-term issue.Additionally, if you have strong credit that qualifies for a lower interest rate.  Carefully review your options, including using our Parent PLUS calculator.

If you’re still unclear about the best step forward, chat with one of our student loan experts.We help you create an actionable plan for managing your student loans in the short- and long-term.