Consolidating federal plus loans
Consolidating federal plus loans - Filthy free sex line
Many graduates on track to take advantage of Public Service Loan Forgiveness do so with income-driven repayment plans.Just keep in mind that most of these plans aren’t available for Parent PLUS loans.
However, spreading payments out over such a long period can cost you more in interest overall.
So what can parents do to ease the strain on their finances?
Here are four ways to get your Parent PLUS debt under control this year.
Pros: Lowers monthly payments and offers Parent PLUS loan forgiveness after 25 years. Requires paying a higher percentage of income than other income-driven repayment plans.
The federal government offers four types of income-driven repayment plans, but Parent PLUS loans are only eligible for one: Income-Contingent Repayment (ICR).
Pros: Could decrease high interest rates on Parent PLUS Loans.
Cons: Requires borrowers to qualify based on credit and income.
Most student loan articles focus on struggling college graduates who can’t repay their debt. We hardly ever hear about the moms and dads who are stuck repaying Parent PLUS Loans for children who obtained undergraduate degrees.
Parent PLUS loan debt currently stands at about .8 billion.
Even worse, these types of loans have the highest interest rates among all federal student loans.
For the 2017-18 school year, the rate is 7.0%, and older Parent PLUS loans could have rates above 7%.
You need to determine whether a lower monthly payment and the interest savings are worth giving up some of the federal protections.