Parent Plus Loan Consolidation – Plus loans are a convenient way to help finance a college education. One benefit is that a portion of the interest is tax deductible. Learn how PLUS Loan Consolidation works and the process required for it to go through. Here are some quick facts about parent plus loan consolidation…
Plus loan consolidation offers a longer repayment term, and on that account lowers your monthly payment. It is said that you can reduce your monthly payments depending on your total balance. Students get lower monthly repayments and a longer payment period. These loans usually provide lower interest rates and fees. Students and parents can consolidate their loans with any lender, even if all of their loans are with a single lender. Borrowers no longer need to exploit the single holder rule loopholes in order to consolidate with any lender.) Direct Loans can also be consolidated with any lender.
Student loan consolidation occurs when you roll all of your student loan payments into one low monthly payment. When you consolidate student loans, you can lower your monthly student loan payment by as much as 60 percent. Students having federal educational loans are also qualified to get a consolidation loan. Private education loans are not considered for student debt consolidation loans. Student loan consolidation is designed to roll multiple loans into a single vehicle for repayment. Parent plus loan consolidation is often sought out to keep monthly payments as low as possible and also to reduce overall interest owed on loans.
Parent plus loan consolidation rates will be determined by the total amount of loans you have to pay back. Each type of loan differs a little bit. Student loan consolidation simply means consolidating all your student loans into a single loan with a monthly payment plan. Effectively, all your previous student loans are written off and a new student loan is created which you have to pay off monthly.
Repayment of PLUS loans begins 60 days after the loan has been disbursed. Parent PLUS loans have to be paid within a period of 10 years and if this is likely to cause problems, parents should consider parent plus loan consolidation, which will allow you to have all of your PLUS loans in one place, with one monthly repayment and the possibility of extending the repayment period for up to 30 years . Repayment of principal and interest begins 60 days after the loan is fully disbursed. Parents can opt to let the interest capitalize until the student leaves school.
Parents can consolidate PLUS loans at any time. Before consolidating a parent plus loan consolidation, take time to see if the consolidation will be beneficial. Parent borrowers as well as students can consolidate their education loans. Although they cannot put their loans together for the purpose of student loan consolidation, they can do it separately. Parents, however, can consolidate PLUS loans at any time.
Generally, you will consolidate your loans once, toward the end of the grace period or after the loans enter repayment, and then be locked into that lender for the lifetime of the loan. If you want to preserve your ability to use parent plus loan consolidation in the future to switch lenders, you should exclude one of your loans from the consolidation. Generally they will be based on rewarding borrowers for steady repayment, or for using an electronically debited account to make payments. The interest rate could be reduced, there can be cash rebates, and the repayment period could even be deferred while the student is still in school.