Consolidating federal parent plus loans
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Borrowers in default may also consolidate in certain circumstances.Consolidating federal student loans may be a good strategy to lower monthly payments or to get out of default, but it is not always a good idea.As you weigh the pros and cons, keep in mind that timing is critical.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.This means, for example, that a Perkins Loan on its own cannot be consolidated into a Direct Loan.You will lose your rights under the federal loan programs once you choose to consolidate with a private lender.
Direct consolidation loans are now the only type of federal student consolidation loan.
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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Under the Direct Loan Consolidation Program, you can consolidate Subsidized and Unsubsidized Stafford Loans, Supplemental Loans for Students (SLSs), Federally Insured Student Loans (FISLs), PLUS Loans, Direct Loans, Perkins Loans, Health Education Assistance Loans (HEALs), and just about any other type of federal student loan.
Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.
Huffington Post Reader Question Dear Steve, I have 3 daughters and have borrowed heavily using PLUS loans to finance their education.