PLus Loan Consolidation
PLUS loans, also known as Direct Parent Loans come at a high interest rate and fees. That makes these loans a little hard to repay. However, a parent who is also a borrower of a Plus can ease the burden of repayment by way of Parent Plus loans consolidation. Parents, choosing to consolidate can subsequently gain eligibility for an income-contingent plan.
The approach includes going for refinancing of the loans by applying for Federal Direct Consolidation Loan. The approach may help parents to reduce their regularly scheduled payments and stretch out the repayment time on the loan. What's more, borrowers may even have the obligation forgiven.
Borrowers making payments on the income-contingent repayment plan pay 20% of their discretionary earnings for a span of 25 years. What's more, unlike Pay As You Earn, borrowers don't have to meet earnings preconditions to qualify under the plan. Be that as it may, the most benefit is derived from having a high debt-to-income ratio.
Furthermore, if a parent has a single loan, he may still consolidate it to qualify for income-contingent plan. Along these lines, in the event that you have just a single Parent PLUS loan, and no secondary loan in your name, you can in any case consolidate this one with the goal that it is no more a Parent PLUS loan, but a consolidated loan.