Consolidating federal plus loans
These federal loans come with high interest rates and fees.
But there’s a way to ease the burden of repayment once your child graduates: student loan refinancing.
Additionally, you’ll get a new loan term ranging from 10 to 30 years.
Your repayment term will generally start within 60 days of when your consolidation loan is first disbursed and will be based on your total federal student loan balance, among other factors; click on the link below for more details.
It’s noble to help your kids pay for college, but it’s not always easy. That’s especially true if you borrowed direct Parent Loans for Undergraduate Students, also known as PLUS loans, to cover part of your child’s college costs.
You can consolidate all, just some, or even just one of your student loans.
Consolidating federal student loans may be a good strategy to lower monthly payments or to get out of default, but it is not always a good idea.
Parents and grad students who borrowed PLUS loans for the 2016-17 school year pay 6.31% in interest, compared to 3.76% on direct loans for undergrads.
Historical PLUS interest rates are even higher: Parents who borrowed between 20 pay 7.9%.