Consolidating direct plus loans
While some parents and students may agree between themselves that the student will be responsible for making payments on the PLUS Loan, the debt obligation legally remains with the parent.By the time your student completes his or her education, you may have borrowed several PLUS Loans.Maximum Loan Length: 10-30 years Frequency of Payments: Varies Prepayment penalties: None Fees: None You apply for a Direct Consolidation Loan through Student Once you sign in to Student using your personal identifiers and Federal Student Aid PIN, you will be able to electronically complete the Federal Direct Consolidation Loan Application and Promissory Note. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance. The PLUS Loan is for a parent with a dependent, undergraduate student who is enrolled at least half-time.Unsubsidized Federal Stafford/Direct Loans: must be repaid. Students are eligible for 00 to ,500 (less any subsidized amounts received for the same period), depending on grade level and dependency status. Parents must also pass a credit check to determine eligibility.NOTE: Information about your loans will be reported to the National Student Loan Data System (NSLDS).
Maximum Loan Amount: None Interest Rate: Weighted average interest rate on the loans being consolidated, rounded to the nearest one-eighth of 1 percent, not to exceed 8.25 percent.
So whether it’s a big vacation, preparing to send more kids to college, or well-earned retirement—you’re ready.
A PLUS loan made to the parent of a dependent student cannot be transferred to the student through consolidation.
How it works Reasons for refinancing Parent PLUS loans range the gamut.
But the benefit of refinancing is always the same: having more money in your bank account to do the things you dream of.
Search for consolidating direct plus loans:
Federal Direct Consolidation Loans are available for most federal loans, including FFELP (Stafford, PLUS and SLS), FISL, Perkins, Health Professional Student Loans, NSL, HEAL, Guaranteed Student Loans, and Direct loans.