1. (a) A Federal PLUS Loan is due for repayment within 60 days of the date of the final disbursement of the loan.
2. (b) A borrower shall repay in substantially equal monthly installment payments at least $600 per year, including principal and interest. If the total of the insured loans would not be repaid in less time with minimum payments of $600 per year, the repayment schedule shall provide for repayment in not less than 5 years, nor more than 10 years. The lender and the borrower may agree to monthly payments of less than $50 over not more than a 10-year repayment schedule.
3. (c) Upon proper notice to the lender, repayment of principal may be deferred in accordance with, and during periods specified in, the Higher Education Act of 1965 (Pub. L. No. 89-329, 79 Stat. 1219) and Federal regulations based on this act. The borrower is responsible for the interest that accrues during any period principal repayment is deferred.

Authority

The provisions of this § 121.137 amended under section 4 of the act of August 7, 1963 (P. L. 549, No. 290) (24 P. S. § 5104); section 1 of the act of January 25, 1966 (P. L. 1546, No. 541) (24 P. S. § 5151); the act of July 18, 1974 (P. L. 483, No. 174) (24 P. S. § § 5181—5189); the act of July 1, 1988 (P. L. 1259, No. 155) (24 P. S. § § 5191—5197); and the act of June 26, 1992 (P. L. 322, No. 64) (24 P. S. § § 5198.1—5198.7).

Source

The provisions of this § 121.137 adopted August 7, 1981, effective August 8, 1981, 11 Pa.B. 2760; corrected August 22, 1981, 11 Pa.B. 2911; amended March 26, 1982, effective March 27, 1982, 12 Pa.B. 1043; amended January 16, 1987, effective January 17, 1987, 17 Pa.B. 249; amended July 22, 1988, effective July 23, 1988, 18 Pa.B. 3208; amended June 9, 1989, effective June 10, 1989, 19 Pa.B. 2428; amended October 4, 1991, effective October 5, 1991, 21 Pa.B. 4637; amended July 12, 1996, effective July 13, 1996, 26 Pa.B. 3321. Immediately preceding text appears at serial pages (161852) to (161853).

Cross References

This section cited in 22 Pa. Code § 121.140 (relating to default); and 22 Pa. Code § 121.142 (relating to co-maker/co-signer).