Consoldating federal student loans
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.Finally, you can only consolidate federal student loans into a federal loan consolidation.If you are hoping to convert your private loans into federal loans to get on IBR or qualify for student loan forgiveness, you are out of luck.Contact your loan servicer if you would like to discuss repayment plan options or change your repayment plan.You can get information about all of the federal student loans you have received and find the loan servicer for your loans by logging in to "My Federal Student Aid." Use the All borrowers are eligible for this plan.
If you are unhappy with your repayment plan, interest rates, or Navient customer service but unable to pay off your loan, consolidating your loan could be the solution to your problems. At its most basic level a new lender pays off your old student loans. Borrowers can consolidate some or all of their loans. At the end of the consolidation process, your old loans are paid in full and you now how to pay off a new loan with newer, and hopefully much better terms.The huge advantage to federal loan consolidation is that you get to keep all of the perks associated with federal loans.Those perks include income based repayment plans and student loan forgiveness.Standard Repayment Plan for Consolidation Loans is not a qualifying repayment plan for PSLF.
Payments are lower at first and then increase, usually every two years, and are for an amount that will ensure your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans).
If you thinking of consolidating your federal loans into a private loan, tread carefully.