PLUS loan delinquency and default

Notify your loan holder immediately if you anticipate difficulty making a payment!

Failure to pay all or part of an installment payment when due can result in late charges.
Your loan holder also has the option, in some cases, to file a lawsuit against you for failure to make timely payments.
Keep in mind that this is a loan in your name, not your student's name. Even if you have made an agreement with your student where he or she will make the loan payments, you ultimately are the responsible party. Any negative consequences that occur from a default will be to you and your credit.

If you fail to make payments for 270 days, your loan is considered to be in default. Defaulting on your Federal PLUS loan can result in serious consequences.

There are three basic guidelines to follow to avoid delinquency and default:

Inform your loan holder of changes in your name, mailing address, telephone, or Social Security number so that all correspondence is promptly directed to you.
Read and keep all documents you receive pertaining to your Federal PLUS loan, and be sure to understand your loan amount and the payments that will be required.
If you're experiencing financial hardship and are unable to make your payments, call your loan holder for information regarding possible temporary postponement or reduction of payments through a deferment or forbearance.

If your PLUS loan already is in default, you have options.