Parent Tips

Monthly payments begin within 60 days of when the loan is fully disbursed. If you request a parent PLUS deferment on the loan application, you won't need to make payments while your child is enrolled at least half time. If you also request a post-enrollment deferment, you will not need to make payments for an additional six months after your child leaves school, graduates, or drops below half-time enrollment.

If you don't elect to defer payment when applying for your Direct PLUS Loans, you may request a parent PLUS deferment or a post-enrollment deferment at a later time:

• Parent PLUS deferments may be requested while your child is enrolled at least half time.

• Post-Enrollment Deferments may be requested while your child is enrolled at least half time or during the six months after your child graduates, leaves school, or drops below half time enrollment.

To request one or both of these deferments, complete and return the Parent PLUS Borrower Deferment Request   this link will open in a new window . Each school may define half-time enrollment differently. If you need to determine the student's enrollment status, please contact the school.

Note: To qualify for the parent PLUS deferment, you must be a parent borrower of a Direct or Federal PLUS Loan that was first disbursed on or after July 1, 2008, and the student on whose behalf you borrowed the PLUS loan must be enrolled at least half time.

We will calculate your repayment terms and provide you with a schedule showing the repayment plan, when payments are due, and the monthly payment amount. If the payment amount is not affordable, other payment options may be available. To estimate your monthly payment amount and explore payment plans, log into studentaid.gov and use Loan Simulator  this link will open in a new window.

Unless you instruct us otherwise, until your loan is fully disbursed (sent to your school) and enters repayment, if you make a payment within 120 days of when a loan is disbursed, the payment will be applied directly to your original principal balance. These payments are considered a partial or full cancellation of the loan. Making payments in this way will reduce the total amount you owe and may reduce outstanding accrued interest and fees assessed at the time the loan was disbursed.

If before your loan is fully disbursed and repayment begins, you want to have a payment applied as a standard payment, submit your request in writing or send a secure message.

Once fully disbursed, your loan enters repayment and payments will be applied as a standard payment, applying first to interest and then principal once all outstanding interest is paid.

After your loan is fully disbursed and enters repayment, if you want a payment that you made within 120 days of the final disbursement applied as a cancellation, submit your request in writing or send a secure message. Keep in mind that cancellation payments do not satisfy bills. To prevent yourself from becoming past due, make standard payments for any required monthly payments that are due.

Note: Transactions applied as a cancellation of the loan reflect differently on your payment history. The posted date is the date the payment posts to your account. The effective date is backdated to the date the loan was disbursed.

When it's time for you to begin repaying your loan, you can save time and ensure your scheduled monthly payments are made on time by setting up Auto Pay. Applying and being approved by MOHELA for scheduled automatic payments to be electronically debited from your banking institution may qualify you for a 0.25% interest rate reduction. Not all lenders offer the 0.25% interest rate reduction (subject to conditions). Until payments are required, payments may be made at any time online, by mail, or by phone.

Encourage your student to register for a MOHELA online account. This will help them to stay up to date with their student loans. They will need to allow 24-48 hours to register after they receive notification of Federal Student Aid assigning us as their servicer. Once their online registration is complete, they will be able to access many account management features:

• Review loan details (balance, accrued interest, etc.)

• Make payments

• Keep contact information up to date

• Sign up for paperless correspondence to see account correspondence faster

• Communicate by secure message

• Upload forms, applications, and documentation

• Access other student loan resources

• Enroll in and manage notifications

Students with subsidized, unsubsidized, or graduate PLUS loans under the Direct Loan Program or the FFEL Program must complete exit counseling each time they drop below half-time enrollment, graduate, or leave school. Exit counseling provides important information to prepare students to repay their federal student loans and select a repayment plan that works best for them.

Your student can also monitor all of their student loans serviced by MOHELA and other federal student loan providers at StudentAid.gov   this link will open in a new window .

Borrowers never have to pay for help with their student loans!

Visit Borrower Protection and StudentAid.gov   this link will open in a new window for information about what to watch for to protect your student and yourself from fraudulent activity and scams.

In certain situations based on your job or other circumstances, you can have your federal student loans forgiven, canceled, or discharged   this link will open in a new window .

When it's time for your student to begin repaying their loan, they can save time and ensure their scheduled monthly payments are made on time by setting up Auto Pay. Applying and being approved by MOHELA for scheduled automatic payments to be electronically debited from their banking institution may qualify them for a 0.25% interest rate reduction. Not all lenders offer the 0.25% interest rate reduction (subject to conditions). Until payments are required, payments may be made at any time online, by mail, or by phone.

The student or others can make payments toward the student's loans at any time.

• Online – the student may pay on their MOHELA online account.

• Phone – the student or others may pay by phone.

• Mail – the student or others may pay by mail. The payment address depends on the loan program; the borrower may log in and go to Contact Us for the correct payment address. The payer should include the student's account number on the check or money order.

Loan Simulator  this link will open in a new window is a tool to help you and your student make decisions about your student loans. Use it to find a repayment plan that meets your needs and goals or to decide whether to consolidate.