PLUS loans (both Parent PLUS and Grad PLUS) have a 3% origination fee and a 1% default fee (total of 4% in fees).

Repayment of the Grad PLUS loan is deferred while the borrower is enrolled in college and will commence 30-60 days after the borrower graduates.

Congress recently changed the treatment of Parent PLUS loans, allowing for deferment of the repayment obligation while the student is in school and for six months afterward. This only applies to the Parent PLUS loan.

For both the Grad PLUS and Parent PLUS loans interest continues to accrue during deferment periods and will generally be added to the loan principle at status changes (e.g., entering repayment).