The interest rate is set annually on July 1. Not based on financial need . The federal government does not pay the interest while the borrower is in school. All interest is the borrower's responsibility. You will be charged interest from the time the loan is disbursed until it is paid in full.
Students can either pay the interest while they are in school or let it accrue.
You must begin repaying this loan 6 months after you cease to be enrolled at least half-time. The interest rate is set annually on July 1. PLUS Loans enable parents with good credit histories to borrow funds to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time. The interest rate is variable, but will never exceed 9 percent. The interest rate is set annually on July 1.