What is Federal Plus loan consolidation?

Parent Loan for Undergraduate Students Loans, also known as PLUS loans, are loans that are offered to parents of students who are enrolled full-time at American institutions of higher education. It enables parents who have taken such loans to consolidate their Plus loans into a single loan with a lower interest rate. A parent can apply to consolidate the federal plus loans if they have at least $10,000 in PLUS Loans. They must have received the final disbursement for the current academic year in order to eligible for application. An important aspect here is that, parents who have taken up such loan consolidation do not have to wait for their children’s graduation to consolidate their multiple plus loans into a single one. The main benefit in getting federal Plus loans consolidated is that you pay only one loan payment every month. Plus loans consolidation enables you to reduce your monthly payment down to sixty percent of the amount you were paying earlier for taking multiple loans. This saves you a lot of money. The repayment schedule is quite simple and you have the option to choose a repayment plan and term that matches with your financial situation.Applying for Plus loans consolidations is a simple process because there is no fees, charges or prepayment penalties for such applications. When you apply for a federal plus loans consolidation your will have no credit checks and application or origination charges associated with your application.Furthermore, the consolidation process will not require any credit check and applicants do not have to bring in co-signer to get the process going. In Plus Loan Consolidation you can stretch your repayment period from the standard 10 years to up to 30 years, depending on the amount of your education debts. Consolidation can significantly reduce your monthly payments burden because the amount sent out from your pocket for such payments is lesser than what you have paid before consolidation. You have the freedom to manage your monthly budget better and the money you save due to lesser monthly payment can be put to other useful purpose such as investments or it can be used to meet other important expenses.

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