Consolidation and Parent PLUS loans | 03.09.10
The consolidation section of our Financial Aid forum is consistently littered with questions about how to consolidate certain types of loans. One useful, but tricky loan type is the Parent PLUS.
Parent PLUS loans are federal-based loans taken out by a parent on behalf of a child. These loans are taken out by the parent in his or her name, and can not be transferred to the student’s name upon graduation. The payments on these loans start right away and are not deferred if the child is still in school.
Scenario 1: Say a child is going to school for four years. The parent decides to borrow four PLUS loans, one for each school year. The loan payments will not being until the freshman year spring semester, when the loan is fully disbursed. The following year, the parent repeats this process, and spring of their child’s sophomore year they want to consolidate the 2 loans together. So to apply for a loan consolidation for the two loans, you may apply for consolidation with a company of your choosing.
Scenario 2: Let’s say there are two children in college at the same time. If a parent takes out one PLUS loan for each of his children in school, he MAY consolidate them when the loan is fully disbursed. It must also be noted that the SAME parent must have filed both loans. Mom can’t file for PLUS loans one year, and have Dad consolidate them the next year.
Scenario 3: If the child or parent attached to the loan suffers an untimely death, the loan is forgiven.
What other questions do you have about Parent PLUS loans?
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I took out Parent Plus loans for my son to attend college. He graduated and is now in the Navy. Is there any type of forgiveness available due to his being in the military?
For his loans yes, but not for your Parent PLUS loan.
my daughter just graduated and she is paying the parent plus loan back. she has loan forgiveness where she teaches in an impoverished school in texas. is there anyway we get get a parent plus loan in this catagory
What if the parents are unable to start payment right away?
Hi,
You have written that Mom can’t file for PLUS loans. if the father is not alive, can mother file for plus loans?
Thanks
Either parent can apply for a PLUS loan at any time.
what if the parents are denied a plus loan
If your parents are denied a Parent PLUS loan, you should consider taking out a private student loan instead. You can find out information about these at http://www.privatestudentloans.com/