PLUS loans go by different rules than most other loans

File this under “things you didn’t know because of sweeping generalizations.”  Not all loans receive a grace period after you are no longer eligible for your in school deferment or status.  PLUS loans (both parent and graduate) do not receive a grace period.  For a Parent loan, the loan goes into repayment instantly after the final disbursement and for graduate loans after the student is no longer attending as at least a half time student.

In both scenarios though you can request what is called a Post Enrollment Deferment that will act as a pseudo grace period.  This will give you the borrower 6 months after you (or your child for a Parent loan) drop below half-time status before repayment begins.

The other “different” thing that happens with PLUS loans only applies to Parent PLUS.  As previously mentioned, or a Graduate PLUS, the loan will still go instantly into deferment when at least half-time enrollment is updated.  However for a Parent PLUS, because many parents prefer to make payments, these loans start out in repayment status.  If based on the student’s enrollment you wish to have a deferment, the parent must then make a request for a Parent PLUS In-School Deferment to be placed.