PLUS Loan Consolidation Benefits
All new Parent PLUS Loans disbursed by the Direct Loan program have a fixed interest rate of 7.9%, and a consolidation loan will use a weighted average of this. If you are consolidating older PLUS loans, you may be able to lower your interest rate, as new federal consolidation loans are capped at 8.25%.
You may also be eligible for an additional 0.25% rate reduction if you sign up to have your payments auto-debited from a bank account each month. Check the Direct Loan Servicing website for more details.
Other Benefits of PLUS Loan Consolidation
- Reduce your monthly payment up to 53% and beat inflation
- Make one loan payment a month
- Improve your credit rating
- There are no application or origination fees, and no credit checks
- There are no balance requirements for Parent PLUS Loan consolidation
Apply to Consolidate Your Parent Plus Loans
Requirements to Consolidate PLUS Loans
- You must have received the final disbursement for the current academic year – you do not have to wait until your child has graduated!
- You cannot have a Federal loan that is currently in default.
Looking for more information?
Check out the student loan consolidation calculator from StudentLoanConsoldiator.com to find out how much you could be paying monthly!
Consolidation can significantly reduce your monthly payment burden. PLUS Loan Consolidation allows you to stretch your repayment period from the standard 10-years to up to 30-years, depending on the amount of your education debts. The lower payment means you'll have more money available to meet other household expenses, like car payments, childcare, and career-related necessities.
