Consolidating plus stafford loans

26 Jan

But a Parent PLUS borrower choose to consolidate his or her Parent PLUS loans into a Direct Consolidation Loan.The Direct Consolidation Loan that repaid the Parent PLUS loans could then be repaid under ICR (but still can’t be repaid under IBR).If you’re able to make consistent, timely payments towards your student loans, you may see your credit score improving over time.If you’ve read about the pros and cons of student loan consolidation, and understand the differences between private and federal loan consolidation, you might have decided that federal loan consolidation is right for you.What this means is that Parent PLUS Loan borrowers who consolidate those loans into Federal Direct (as we say in the South) earn Public Service Loan Forgiveness, if they owed “enough”, didn’t earn “too much”, and met all the requirements.A couple of special notes of caution for parents with student loans: Finally, Parent PLUS and Grad PLUS student loans are different.

Because Parent PLUS loans cannot be repaid under either Income-Based Repayment or Income-Contingent Repayment, you can’t actually make payments on a Parent PLUS loan that count towards Public Service Loan Forgiveness, unless you pay under the Standard 10-year Repayment plan, which won’t leave anything left to forgive.

Graduate and professional students can borrow Grad PLUS loans to pay for their own post-graduate education.

Direct Grad PLUS loans are eligible for Public Service Loan Forgiveness and can be repaid under the Income-Based Repayment plan.

You have the option to select the servicer of your choice (of which, Nelnet is an option) After your new Direct Consolidation Loan is complete, you may still add more eligible loans to your existing consolidation.

If you would like to add other eligible loans, your servicer must receive your Request to Add Loans Form within 180 days from the date your Direct Consolidation Loan is completed (originated).