Multiple Pluses for Multiple PLUS Loans
Multiple Pluses for Multiple PLUS Loans
One of the best options available for a parent to help their college students pay for the ever-increasing tuition costs these days is to apply for a Federally funded Parent Loan for Undergraduate Students, or PLUS loan. The low interest rate (capped by the government and currently just 8.5%) allow families to pay for the college student’s expenses without draining their income.
Sometimes, though, parents end up securing multiple loans for each child and multiple loans for multiple children. These expenses will continue to add up, and many parents will be left paying of several loans and wondering how they will ever get all the loans completely paid off.
Now there are options available to parents with multiple PLUS loans. Keep in mind that loans are secured with a social security number to delineate the responsible party. The personal identifier will be on each and every loan secured. These loans are therefore eligible to be combined and consolidated to a single loan company, making payments easily managed.
Getting the best consolidation loan available will take some research, but an abundance of benefits will be associated that are unique to the entity offering them. Generally they will be based on rewarding borrowers for steady repayment, or for using an electronically debited account to make payments. The interest rate could be reduced, there can be cash rebates, and the repayment period could even be deferred while the student is still in school. Most will not charge penalty for early pay-offs either.
Take the time to look into all offers found to consolidate PLUS loans, and be sure the particular lending institution does not limit their consolidation loans to the ones secured for a single student. PLUS loans are not limited to the balance between the cost of attendance and the expected family contribution. This means that the loan can be as much as the entire cost of attendance for the year, allowing the funding to be used for supplies, living expenses and even computers.
Applying is as easy with the online forms, and the many companies that offer these multiple loan consolidations will give responses within minutes. If your application is rejected, do not give up. Look for other companies that have special “adverse credit” type programs. They specialize in financing families with less than perfect credit, and can find ways to help you. They can even help you rebuild your credit while they do it!