Consolidating parent plus loans

12 Feb

I just published this new article which gives new details on how to lower your Parent PLUS Loan payment and even eliminate it for less than you owe using a government program.Get Out of Debt Guy - Twitter, G , Facebook If you have a credit or debt question you'd like to ask, just click here and ask away.A low interest rate that’s locked in for the life of your loan – so your monthly payments never change.A fixed rate may result in a higher total cost, but you’ll rely on predictable monthly payments.If you have Parent PLUS Loans, you cannot: If you are on the standard 10-year repayment plan for your Parent PLUS Loan, you are eligible for Public Service Loan Forgiveness (PSLF).However, since PSLF requires 120 payments (or 10 years of payments), you'll have nothing left to forgive at the end.Loan consolidation can also give you access to additional loan repayment plans and forgiveness programs. Refer to the complete list of federal student loans eligible for consolidation in the application.

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The fact is, though, if you're reading this article, it's too late.

allows you to consolidate (combine) multiple federal education loans into one loan. Top Private education loans are not eligible for consolidation, but for some Direct Consolidation Loan repayment plans, the total amount of your education loan debt—including any private education loans—determines how long you have to repay your Direct Consolidation Loan.

The result is a single monthly payment instead of multiple payments. Direct PLUS Loans received by parents to help pay for a dependent student’s education cannot be consolidated together with federal student loans that the student received.

Once your loans are combined into a Direct Consolidation Loan, they cannot be removed.

If you want to lower your monthly payment amount but are concerned about the impact of loan consolidation, you might want to consider deferment or forbearance as options for short-term payment relief, or consider switching to an income-driven repayment plan.