| Publication Date: March 05, 2007 Bulletin ID: DLB-07-03 Summary: In-School Deferments for Graduate/Professional Student Direct PLUS Loan Borrowers Posted on 03-05-2007 Dear Partner: Many schools have expressed concerns that graduate/professional students would have to apply separately for in-school deferments on their Direct PLUS Loans, even though they would receive automatic in-school deferments on their Direct Subsidized and Direct Unsubsidized Loans based on their half-time enrollment status. In response to those concerns, we have implemented a change that will allow Direct PLUS Loans for graduate/professional students to be placed into an in-school deferment status based on the information reported by schools through the Enrollment Reporting process (formerly SSCR). Through the Enrollment Reporting process, graduate/professional students who continue to be enrolled on at least a half-time basis will automatically receive in-school deferments on their Direct PLUS Loans that will remain in effect until the Academic Completion Date (ACD) reported by the school. The first payment on a Direct PLUS Loan will be due within 45 days after the deferment end date. The Direct Loan Servicing Center (DLSC) will notify students 60 days before the deferment ends. Note: Students who receive an in-school deferment will be notified of the deferment and of their option to cancel the deferment and begin making loan payments. How You Can Help Because the deferments for graduate/professional students are based on enrollment information, it is extremely important that schools report student enrollment information to the National Student Loan Data System (NSLDS) in a timely manner. In addition, schools must include an accurate ACD within the submitted enrollment data. If a school does not report enrollment information in an accurate and timely manner, a graduate/professional student will need to request a deferment on his or her Direct PLUS Loan by submitting an In-School Deferment Request form (which must be certified by the school) to the DLSC. Where to Get More Information To assist schools in answering students’ questions, we have updated the document titled “Questions and Answers about Direct PLUS Loans for Graduate and Professional Students” and included it as an attachment to this bulletin. Sincerely, Bill Leith General Manager, Program Operations Channel Attachments/Enclosures: |