Graduation is past and now just as the graduate, parents need to also get organized for their Parent Plus loan consolidation. For many parents the Parent PLUS Loan was the best financial option to help your child attend college. The legal responsibility to repay these loans may come as a surprise to some parents since it is your loan legally. A Parent PLUS Loan Consolidation is a great way to stay organized. It is highly recommended that you consolidate the PLUS loans by child. Since there are some additional benefits under the Federal Student Loans program by child. By consolidating the loans you simplify your repayment process. It is also recommended that you consolidate them under the Federal Direct Program. If you have multiple children and they attended different schools the PLUS Loans could be serviced by different lenders or organization. Again simplicity is the key. The penalties for default are severe and could impact your retirement. Since this is your loan, your child has no legal responsibility to repay it even if you had an open discussion about this. The student can not consolidate the Parent PLUS loans under their student loans either. This prior decision could impact your financial life today and your future retirement planning.
The topics covered in the Parent Plus Loan Consolidation video include:
- Parent PLUS Loan Consolidation decision and process
- PLUS Loans Repayment options
- Consequence of PLUS Loan Default
- Child’s role and responsibility
- Legal responsibility and advantages
If additional advice is required please visit the other videos on this website. If professional financial advice is required visit our College Affordability Services.