If the student agrees to make payments on the PLUS loan, but fails to make on-time payments, the parents will be held financially responsible!
So what are the Parent Plus loan interest rates that exist today?
The first is the opportunity to save thousands of dollars by getting a lower interest rate.
The second is the peace of mind that comes with being able to choose the right loan term and rate option for your finances, especially if your situation has changed since you first borrowed your Parent PLUS Loan. Since 2006, the average rate for the Parent PLUS loan has been about 7.6%.
(You can still consolidate your federal loans through the government in order to pay just one monthly bill, but your rate will be a weighted average of your existing interest rates, so there’s no real savings opportunity.) How can you tell if it’s worth it to give up your federal benefits and refinance to a lower rate?