Consolidating direct plus loans

Refinance Your Loan Second, you could refinance your Parent PLUS Loan into a private student loan.

And the most common way that parents borrow money to pay for college is through Parent PLUS Loans.

They sound like a good idea – parents can get Federal loans with all the great benefits that students get. In fact, Parent PLUS Loans don’t offer any type of income-based repayment plan (directly) nor do they qualify any type of student loan forgiveness programs (well, once again, this is nuanced as well and we discuss below).

However, since PSLF requires 120 payments (or 10 years of payments), you’ll have nothing left to forgive at the end.

However, there are still options available to lower your student loan payments.

However, with the graduated plan, these payments will rise over time.

With the extended plan, the payments will remain the same.ICR is an income-based repayment plan that is not as generous as IBR or PAYE.Borrowers paying on the ICR plan pay 20% of their discretionary income for up to 25 years.Deferment and forbearance are temporary ways to stop making payments on your student loan.You can read more about deferment and forbearance here.But, for many, the much lower payment makes up for any potential rise in the future.