Review of PLUS consolidation (Consolidating PLUS)
Choosing the right financial aid package can be as tough a decision for the parents of the student as it is for the students. When parents decide to shoulder some of the responsibility of student loans they often want the loans that provide the most money to fund the student’s education with the best interest rates for repayment.
There are many loans, secured and unsecured, for parents. The most popular of these is the Parent Loan for Undergraduate Students (PLUS) loan program.
PLUS Consolidation Basics
This federal student loan program is offered to the parents of undergraduate students who are currently studying. It can cover the entire projected expense of the student’s education with the exclusion of the amount of any additional financial aid. As a federal student loan program, it comes at a low interest rate and with incentives like the option for consolidation.
PLUS Consolidation Benefits
- The consolidations program for PLUS loans offers an interest rate that is among the lowest available for fixed rate loans.
- Once you have refinanced your PLUS loan you can save more than half on the amount you spend on PLUS repayments each month.
- The greatest benefit for PLUS loan consolidation is that you do not have to wait until the student has completed their education to consolidate and begin repayment.
- Upon consolidating, you benefit from the low interest rate for the term of the loan. Consolidating your PLUS loan can improve your credit rating.
- There are various types of refinancing programs within PLUS loan consolidation so you can choose the one that best fits your repayment ability.
- Your repayment term can be anywhere from 10 to 30 years.
PLUS Consolidation Requirements
There are minimal requirements for consolidating PLUS loans:
- You have to have the final disbursement for the academic year
- You have to have taken out at least $10,000 in PLUS loans.
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