Start Consolidating graduate plus loans

Consolidating graduate plus loans

If you are contacted by someone offering to consolidate your loans for a fee, you are not dealing with one of the U. Department of Education’s (ED's) consolidation servicers. To apply for a Direct Consolidation Loan, you must follow the process outlined below. Borrower benefits from your original loan, which may include interest rate discounts, benefits, can significantly reduce the cost of repaying your loans. If you want to lower your monthly payment amount but are concerned about the impact of loan consolidation, you can consider reevaluating your and income situation.

If you don’t pay the interest as it accrues, it will be capitalized (added to the loan balance), increasing the amount of the loan. The annual limit on a Grad PLUS Loan is equal to your school’s total cost of attendance (COA) minus any other financial aid received. The cost of attendance includes: Example: The Direct Loan program sends the Grad PLUS Loan funds to your school to be credited to your student account.

In most cases, the loan will be sent (disbursed) in at least two installments.

The standard repayment term on Grad PLUS Loans is 10 years. You can cancel the loan or reduce the loan amount by returning funds to the lender.

However, you can qualify for a longer repayment term if you consolidate the loans or have more than $30,000 in federal student loans with a single lender. Your graduate school must notify you when it credits your student account with Grad PLUS Loan funds.

If you get denied for a Grad PLUS Loan, you can re-apply with a qualified cosigner.

(Note: If you are denied a Grad PLUS Loan because of an adverse credit history, you don’t become eligible for higher Direct Unsubsidized Loan limits.) The interest rates on Grad PLUS Loans are fixed and do not change over the life of the loan.

Loan consolidation can greatly simplify loan repayment by centralizing your loans to one bill and can lower monthly payments by giving you up to 30 years to repay your loans.