The yearly limit on a PLUS Loan is equal to your cost of attendance minus any other financial aid you receive. It is adjusted each year on July 1. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full. Generally, repayment must begin within 60 days after the final loan disbursement for the academic year. There is no grace period for these loans.
Interest begins to accumulate at the time the first disbursement is made.
Your parents must begin repaying both principal and interest while you are in school. Loans are not included. Since you are required to report taxable awards to the I.R.S. as income, you should keep a detailed record of all expenditures for tuition, fees, books, and required equipment and supplies. Housing and food are considered non-exempt, so money spent on these items are subject to income tax. For more detailed information, consult your personal tax advisor.