Under other programs, the borrower is responsible for paying the interest that accrues while the student is in school. If the borrower does not make payments, it is added to the loan balance. Grace Phase Student graduates, enrolls for less than half time, or withdraws. Repayment Phase Student begins repaying federal Stafford or Perkins loans when the grace period ends. Parent begins repaying federal PLUS loans immediately after full disbursement and must make initial payment within 60 days of disbursement.
Lender sends notice confirming to borrower that loan is paid in full.
Lender notifies credit bureaus that borrower has fully repaid the loan. Inc. All rights reserved.