As you weigh the pros and cons, keep in mind that timing is critical.
Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.
Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.
For those that might now be aware, a Parent PLUS student loan is a loan parents can take out help dependent undergraduate student pay for education expenses.
But some of those expenses might just really evaporate up in smoke if the child uses them for things like expensive off-campus housing, supplies, partying, and more loosely related university expenses.
WARNING: It is very dangerous to consolidate federal loans into a private consolidation loan.
You will lose your rights under the federal loan programs once you choose to consolidate with a private lender.If you deferred payment when you took the loans, keep in mind that your repayment for Parent PLUS loans starts six months after your student has been out of school., you take one new loan to pay off some or all of your existing loans.By refinancing into a no-fee private loan, you can access rates starting at 2.13% for a variable loan and 3.50% for fixed-rate loans.Technically, parents can borrow up to the cost of attendance.The school will calculate this based on the living arrangements, tuition, meal plan, off campus rent, transportation, books, and fees.To give you an idea of savings, let’s say you borrowed a total of ,000 in Parent PLUS loans between 20 and have an average rate of 7.09%.