Every month, HESC’s “Question and Answer” Web feature includes an interesting question presented to the Office of Counsel and Regulatory Compliance staff.

This month’s winning question is:

As a Parent PLUS borrower, am I entitled to a grace period before starting repayment of my loan while my dependent child is attending school?

Based on recent federal legislation, for PLUS loans first disbursed on or after July 1, 2008, parent borrowers have the option of beginning repayment of the loan either 60 days after the loan is fully disbursed or not until six months after the dependent student ceases to be enrolled on at least a half-time basis. The interest that accrues during the delayed repayment start date may be paid, at the option of the borrower, either monthly or quarterly, or may be capitalized no more frequently than quarterly.

Direct questions about this guidance to the Office of Counsel and Regulatory Compliance at 518-473-3986, or toll-free at 1-866-431-HESC (1-866-431-4372); press 6, or, askpolicy@hesc.org