How to Pause Parent PLUS Loan Payments: Deferment, Forbearance, and the $0 Payment Option

Parent PLUS loan payments don’t wait. There’s no grace period, no automatic break, and interest starts the day the loan disburses. If you need to stop paying right now — whether you can’t afford the payments or your child is still in school and you weren’t expecting a bill yet — you have three options: deferment, forbearance, or an income-driven plan with $0 payments.

Each one pauses your payments. Each one has a cost. (If you’re past the point of pausing, see what to do when you can’t pay Parent PLUS loans.)

Parent PLUS loans enter repayment 60 days after the final disbursement for the enrollment period. Unlike your child’s Direct Loans, there is no automatic six-month grace period. Many parents are blindsided by this — they assumed payments wouldn’t start until after graduation.

The fix is an in-school deferment:

• What it does: Postpones all payments while your child is enrolled at least half-time, plus six months after they graduate, leave school, or drop below half-time.

• It is not automatic. You must request it from your loan servicer. If you don’t, payments are due regardless of your child’s enrollment status.

• How to request it: Submit the In-School Deferment Request form to your servicer. You’ll need your child’s school and enrollment information.

• The pre-July 2008 wrinkle: If your Parent PLUS loan was first disbursed before July 1, 2008, the in-school deferment isn’t available. Request an in-school forbearance instead — same effect, different category. (Some parents also transfer the loan to the student through refinancing, though that requires the student to qualify with a private lender.)

Important: Interest accrues the entire time you’re in deferment. Parent PLUS loans are always unsubsidized — the government does not cover interest during any deferment period (with one narrow exception for cancer treatment).

If the issue isn’t timing but money, you have more options than most parents realize. The right choice depends on whether your situation is temporary or ongoing.

Deferment (if you qualify)

Deferment pauses payments, but you must meet specific eligibility criteria:

• Economic hardship deferment — up to 3 years

• Unemployment deferment — up to 3 years

• Military service deferment — active duty plus 13 months after

See the full eligibility criteria for each type below. If you qualify for any of these, request deferment first — it has stricter eligibility than forbearance, but it’s the cleaner option on your loan record.

Forbearance (when you don’t qualify for deferment)

Forbearance is easier to get — your servicer has discretion to grant it based on financial difficulty, even without meeting specific criteria.

• General (discretionary) forbearance: Up to 12 months at a time, 3 years cumulative. You ask, provide a reason, and the servicer decides.

• Mandatory forbearance: Your servicer must grant it if you meet certain criteria (medical/dental residency, AmeriCorps service, National Guard duty, or monthly payments exceeding 20% of gross income).

New restriction for future borrowers: Under the One Big Beautiful Bill Act, loans originated on or after July 1, 2027 are limited to 9 months of forbearance per 24-month period. If your Parent PLUS loan was disbursed before that date, the older limits (12 months at a time, 3 years cumulative) still apply.

When to use forbearance vs. deferment

Both pause payments. Both accrue interest. The practical difference comes down to eligibility and speed.

Use deferment if you meet the criteria for economic hardship, unemployment, or military service. Documentation takes longer to process, but deferment periods run up to 3 years for most types.

Use forbearance if you don’t qualify for deferment or need relief fast. Your servicer can often grant general forbearance over a single phone call.

If you need payments stopped this week and can’t wait for deferment documentation, forbearance gets it done faster. Either way, both are temporary — if your hardship is long-term, there’s a better option.

Parent PLUS loans are unsubsidized. Every day in deferment or forbearance, interest accrues at your loan’s full rate. When the pause ends, that accrued interest capitalizes — it gets added to your principal balance, and you start paying interest on interest.

Example: $30,000 Parent PLUS loan at 8.94%, deferred 4 years

• Daily interest: $30,000 x 8.94% / 365 = $7.35 per day

• Annual interest: $2,682

• 4 years of accrued interest: $10,728

• New balance after capitalization: $40,728

That’s an extra $10,728 added to what you owe — and now you’re paying 8.94% on $40,728 instead of $30,000. Your monthly payment after deferment will be higher than it was before.

How to reduce the damage

You can make interest-only payments during deferment or forbearance. In this example, paying $224/month (the interest-only amount) prevents capitalization entirely. Your balance stays at $30,000 when you resume payments.

Even partial interest payments help. Paying $100/month during deferment cuts the capitalized amount roughly in half.

The one exception: cancer treatment deferment

If you’re receiving cancer treatment, the cancer treatment deferment is the only deferment where interest does not accrue on Parent PLUS loans — even though they’re unsubsidized.

If you can’t afford payments and your hardship isn’t temporary, deferment and forbearance are just kicking the can. Interest piles up, your balance grows, and you’re in the same position a year later with a bigger loan.

There’s a better path: income-driven repayment at $0 per month.

On an income-driven plan, if your income is low enough, your calculated payment can be $0. That’s the same practical effect as deferment — you pay nothing — but with one critical difference: every month on an income-driven plan counts toward forgiveness. Deferment and forbearance months do not.

The path for Parent PLUS borrowers: consolidate into a Direct Consolidation Loan, enroll in ICR, make one payment, then switch to IBR — where payments are 10-15% of discretionary income instead of ICR’s 20%. The Parent PLUS loan repayment options guide covers the full sequence and payment comparisons.

If you’ve seen references to the “double consolidation loophole” — consolidating twice to access IBR — that workaround is no longer necessary. A single consolidation now reaches IBR through one ICR payment under the One Big Beautiful Bill Act.

The consolidation deadline has nearly passed

This income-driven path requires your consolidation loan to be fully disbursed by June 30, 2026. That’s a completion deadline, not an application deadline — processing takes 4-6 weeks.

If you’ve already consolidated (or your consolidation is in progress), you’re fine. You can enroll in ICR whenever you’re ready.

If you haven’t started a consolidation application yet, you are likely too late. The Department of Education recommended applying by April 1, 2026 to ensure processing would complete in time. If you want to try, apply immediately at StudentAid.gov — but understand there is no guarantee it will process before the cutoff.

After the deadline: Parent PLUS consolidation loans disbursed on or after July 1, 2026 will not be eligible for any income-driven plan. ICR itself sunsets on July 1, 2028, at which point borrowers already on ICR transition to IBR.

If you missed this window, deferment, forbearance, and the extended repayment plan (up to 25 years) are your remaining options for lowering payments.

Every deferment category a Parent PLUS borrower can qualify for:

In-school deferment — while your child is enrolled at least half-time, plus 6 months after. Must be requested from your servicer; it is not automatic.

Economic hardship deferment — up to 3 years (granted 1 year at a time). You qualify if you’re receiving public assistance (SNAP, TANF, SSI), earning below 150% of the poverty line, or serving in the Peace Corps.

Unemployment deferment — up to 3 years. Requires proof of unemployment benefits or a documented job search.

Military service deferment — covers active duty plus 13 months after. Available to active-duty service members and qualifying National Guard members.

Cancer treatment deferment — duration of treatment plus 6 months after. This is the only deferment where interest does not accrue on Parent PLUS loans, even though they’re unsubsidized. Applies to Direct Loans disbursed on or after September 28, 2018.

Graduate fellowship deferment — duration of the fellowship. The parent borrower must be the one enrolled in the fellowship program.

Rehabilitation training deferment — duration of the program. Available to borrowers participating in an approved rehabilitation training program.

Each requires a separate request and documentation submitted to your servicer. Deferments are not retroactive — request them before you miss payments.

Step 1: Find your servicer

If you don’t know who services your Parent PLUS loan, log in at StudentAid.gov and check “My Aid” for your servicer’s name and contact information.

Step 2: Submit your request

• For deferment: Download the appropriate deferment request form from StudentAid.gov, complete it, and submit to your servicer with supporting documentation.

• For forbearance: Contact your servicer by phone or through their online portal.

Step 3: Keep paying until approval

Your loan remains in active repayment until your servicer confirms the deferment or forbearance. If you stop paying before approval, you’ll accrue late fees and potentially delinquency marks on your credit report.

Step 4: Set a calendar reminder

Deferments and forbearances expire. Set a reminder 30 days before yours ends so you can either renew, switch to a different option, or prepare to resume payments.