(a) A Federal PLUS
Loan is due for repayment within 60 days of the date of the final disbursement
of the loan.
(b) A borrower shall
repay in substantially equal monthly installment payments at least $600 per
year, including principal and interest. If the total of the insured loans would
not be repaid in less time with minimum payments of $600 per year, the
repayment schedule shall provide for repayment in not less than 5 years, nor
more than 10 years. The lender and the borrower may agree to monthly payments
of less than $50 over not more than a 10-year repayment schedule.
(c) Upon proper notice to the lender,
repayment of principal may be deferred in accordance with, and during periods
specified in, the Higher Education Act of 1965 (Pub. L. No. 89-329, 79 Stat.
1219) and Federal regulations based on this act. The borrower is responsible
for the interest that accrues during any period principal repayment is
deferred.
Notes
The
provisions of this § 121.137 adopted August 7, 1981, effective
8/8/1981, 11 Pa.B. 2760;
corrected August 22, 1981, 11 Pa.B. 2911; amended March 26, 1982, effective
3/27/1982, 12 Pa.B. 1043;
amended January 16, 1987, effective 1/17/1987, 17 Pa.B. 249; amended July 22, 1988,
effective 7/23/1988, 18 Pa.B.
3208; amended June 9, 1989, effective 6/10/1989, 19 Pa.B. 2428; amended October 4,
1991, effective 10/5/1991, 21
Pa.B. 4637; amended July 12, 1996, effective 7/13/1996, 26 Pa.B.
3321.
The provisions of this § 121.137 amended under
section 4 of the act of August 7, 1963 (P. L. 549, No. 290) (24 P. S. §
5104); section 1 of the act of January 25,
1966 (P. L. 1546, No. 541) (24 P. S. §
5151); the act of July 18, 1974 (P. L. 483,
No. 174) (24 P. S. §§
5181-5189); the act of July 1,
1988 (P. L. 1259, No. 155) (24 P. S. §§
5191-5197); and the act of June
26, 1992 (P. L. 322, No. 64) (24 P. S. §§
5198.1-5198.7).
This section cited in 22 Pa. Code §
121.140 (relating to default); and
22 Pa. Code §
121.142 (relating to
co-maker/co-signer).
