Before we tell you about PLUS loan consolidation, here is a brief idea about what a PLUS loan is all about.
The PLUS Loan
The PLUS Loan is essentially a student loan that is on offer for parents of students. The condition being that the student must have been enrolled for an eligible program for at least half of the duration of the course, at the post-secondary institutions that are eligible and are participants in the process of PLUS loans.
As of July 1, 2006, even graduate students can avail themselves of the PLUS Loan Program.
PLUS Loan Consolidation
PLUS loan debt consolidation is a debt management tool that is practical and convenient. It enables you to bundle or integrate all your federal loans into a single loan package. That means that all the monthly payments that you make for the loans taken to finance the college education of your child would be combined in just one monthly payment.
The process of PLUS loan debt consolidation will not only help in the reduction of your monthly payments but will also enable you to stretch the repayment period for up to 30 years.
The Benefits of PLUS Loan Consolidation
Be it a parent PLUS consolidation or a graduate PLUS consolidation the benefits remain, largely, the same. Some of them are:
- Your monthly payment can be reduced up to 53%( approx), if you extend your term for repayment of the loan
- In many cases, more often than not, in parent PLUS consolidation the rates of interest can be reduced to about 25%
- Once all your open loan accounts have been consolidated into a single loan, your credit rating will see a great improvement.
- When it comes to PLUS loan debt consolidation, there are no application fees, no credit checks, or no charges of origination.
Do You Qualify for PLUS Loan Consolidation?
There are a few basic qualifications associated with parent PLUS consolidation and graduate PLUS loan consolidation, which are:
- $20, 000 in existing PLUS loans is a minimum prerequisite if you want to embark on a PLUS loan debt consolidation program
- The final disbursement of the current academic year must have been received. You are not required to wait till the graduation of your child.
Contact us immediately for all your PLUS loan debt consolidation requirements