Consolidating parent plus student loans
Guidelines for requesting a Parent PLUS Loan: Parent PLUS Loans are available only to the parents of dependent undergraduate students.
The parents of independent undergraduate students are not eligible for the Parent PLUS Loan.
Parent PLUS Loans are eligible for public service loan forgiveness.
The annual loan limit on a Parent PLUS Loan is the full annual cost of attendance (COA) minus other financial aid received by the student. The cost of attendance includes: Repayment on a Parent PLUS Loan normally begins no later than 60 days after the loan is fully disbursed.
However, borrowers can defer repayment of a Parent PLUS Loan first disbursed on or after July 1, 2008, while the student is in school and during a six-month grace period after the student graduates or drops below half-time enrollment status.
Some parents borrow Parent PLUS Loans to make sure their children don’t take on too much student loan debt.
But remember, nothing stops parents from helping their children with their student loan payments.
What causes an adverse credit history: If either parent later qualifies for a Parent PLUS Loan, the student’s loan limits return to the dependent student level.