October 26, 2006
Can I Borrower a Plus Loan to Pay Back My Daughters Private Loans?
This question was asked of me today from a borrower who has just recently heard of the Parent Plus Loan. She thought that borrowing the Parent Plus Loan would help her out of the huge interest rate she is paying on her private student lans. Unfortunately, the answer to this questions is No, you can not borrow a Parent Plus Loan in order to pay back any loans as the funds get disbursed directly to the school. Federal Loans such as the Parent PLus Loan are for upcoming cost of attendance only. The loans can not be consolidated with a private loan or turned into Federal Loans ever. In order to improve your interest rate on private student loans you may want to consider Private Loan Consolidation with one or more credit worthy co-borrowers. The better the combined credit score and history, the better interest rate you will receive.