Consolidating direct plus loans

Note: Even though after consolidation you will have one loan, if you are consolidating subsidized and unsubsidized loans, they will be tracked separately.

If you decide to return to school or enter into another deferment period, the subsidized portion of your consolidation loan retains the benefit of having the interest paid for you during that time.

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The goal with this process is not only to get the ease of a single payment, but to receive a lower interest rate based on your financial history.

I see a lot of things available to students who have borrowed.

Is there anything available to parents to reduce interest, extend the term, or reduce the monthly payments on the PLUS loans they obtained for their children's education? Department of Education website even has a handy online calculator to show you what your payment may be and alternative payment options like an income based repayment program.

For some loan types, the government pays the interest on your behalf during the grace period.

Since your grace period ends once a consolidation is complete, you could be waiving (giving up) part of your grace period by consolidating during that time. It is critical that you continue making payments, if required, to the holders or servicers of the loans you want to consolidate until your consolidation servicer informs you that the underlying loans have been paid off.

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