I just published this new article which gives new details on how to lower your Parent PLUS Loan payment and even eliminate it for less than you owe using a government program.
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Is there anything available to parents to reduce interest, extend the term, or reduce the monthly payments on the PLUS loans they obtained for their children's education? Department of Education website even has a handy online calculator to show you what your payment may be and alternative payment options like an income based repayment program.
Mark Dear Mark, I'd first look at the Federal Direct Consolidation Loan program. As far as interest rates go, the interest rate for a Direct Consolidation Loan is fixed for the life of the Direct Consolidation Loan.
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It’s noble to help your kids pay for college, but it’s not always easy. That’s especially true if you borrowed direct Parent Loans for Undergraduate Students, also known as PLUS loans, to cover part of your child’s college costs.
The extended period makes the monthly payment amount more manageable; however, the longer your loans are in repayment, the more interest you will pay over the life of the loan.You have to complete the application in a single session, so do your research before you start. You can consolidate all your federal loans or just some of them.In loan consolidation, your existing student loans are paid off and replaced by a new, large loan combining all those amounts.Parents and grad students who borrowed PLUS loans for the 2016-17 school year pay 6.31% in interest, compared to 3.76% on direct loans for undergrads.Historical PLUS interest rates are even higher: Parents who borrowed between 20 pay 7.9%.