It was to our attention that many students request a student debt consolidation programs and want to include PLUS loans. Others believe that wrongly PLUS loan can not be consolidated. All these concepts are erroneous due to lack of information on the proper PLUS loans. PLUS loans can be consolidated, it’s just that they will not be consolidated together with student debt under certain circumstances.
The nature of the PLUS loan differs from the other student loans and thus there are some obstacles to the achievement of the student debt consolidation loans and also on the packaging. Although it might not be economic reasons for this, the source of this difficulty is legal and has to do with who the real owner of the loan. This problem can however be overcome by other means.
Nature of plus loans and the common barriers to consolidation
PLUS loans are for the provision of financial resources for the parents of pupils so that they help their children pay for their college studies. The obligation to repay is not the students, but the burden on parents. PLUS loans a personal loan with three parties: the lender (financial institution), the purchaser or the borrower (the student, the parents) and the final recipient of the loan (the student).
So, legally speaking, is committed to the loan contract, the actual parents. And since the consolidation of federal student loans mean, instead of all the debts for which the student is obligated to a loan, PLUS loan stay by a parent debt and not a student debt. This does not mean that PLUS loans are not consolidated because it is in some other way to fulfill this purpose.
Independent of plus loan consolidation
PLUS loans can be consolidated, regardless of student debt in this case, what the parents actually do, their PLUS loan refinancing on favorable terms, such as lower prices and more generally the lowest monthly payments by extending the repayment programs. The problem is that this is not a single monthly payment, and packing all students debt.
The alternative is for parents to consolidate PLUS loans together with other personal debt, consumer debt. This reduces the debt in a single monthly payment, but keeps the students part of the blame on one side and parents on the other side. Nevertheless, thousands of dollars can be saved by using the debt consolidation through these funds.
Joint Consolidation: Other means to achieve this objective
A final alternative that is a comprehensive solution to ensure all debts through a home-equity loans. These loans may be higher loan amounts with no specific purpose for the money and the money thus obtained can be used for repayment of the federal and private student loans and PLUS loans. Then, the student can provide for the PLUS loan debt through the repayment of the entire new loan or loan rates can be distributed. However, it should be noted that the owner of the property is the risk run by this financial transaction.