JB Pritzker, Governor, State of Illinois

Rights and Responsibilities for PLUS Loans

Note that details provided on this page reference older loans made under the Federal Family Education Loan Program (FFELP). All new federal student loans come directly from the U.S. Department of Education (ED) under the William D. Ford Federal Direct Loan Program (Federal Direct Loans). For information regarding Federal Direct Loans, refer to the Loans page of ED's Federal Student Aid website or contact the college's financial aid office.

Your rights

As a Federal PLUS Loan borrower, you have the right to:

  • Notification in writing if your loan is sold or transferred, showing the name, address and phone number of the new owner of your loan. You must direct all future correspondence to that new owner
  • Deferment of repayment for a defined period if you qualify and request it from your loan holder.  You must be aware of the dates your loan was disbursed because eligibility varies greatly from year to year.
  • Request a forbearance from your loan holder if you do not qualify for a deferment and are unable to make payments on your loan
  • Prepay all or any part of the amount you owe without penalty
  • A copy of your promissory note (may be an electronic copy)
  • At least five years, but not more than ten years, to repay the loan under most circumstances.

Your Responsibilities

As a Federal PLUS Loan borrower, you are responsible for:

  • Repaying your loan and all accrued and/or capitalized interest according to the established repayment schedule
  • Using the loan proceeds only for your student’s educational expenses for the loan period certified by the college’s financial aid office, or facing prosecution if the funds are used for any other purpose
  • Promptly responding to any correspondence sent by the holder of the loan, college, of the agency that guaranteed your loan
  • Notifying the loan holder(s) if you change your address, change your name, change your phone number, or correct your Social Security Number

Note: If you fail to repay your loan, your loan will default. This will result in serious consequences, which include damaging your credit rating.