Should I refinance my parent plus loans?
My parents took out Parent Plus Loans on my behalf and I agreed to pay them off. I would like to reduce the interest rate and maintain the current term to give my budget some extra breathing room as well as save money in the long run. My current average weighted interest rate is 6.6%
I understand that refinancing them into a private loan will eliminate the possibility of forgiveness, forbearance, and deferment, but I do not plan on waiting 25 years to get rid of these loans, or going back to school. I also have a stable income and I am not concerned about making the payments every month.
My parents have offered to refinance the loans in their name if that is the route I would like to go.
Is there anything else I should be aware of? Are there different options I should explore first?
All advice is appreciated!!!!
Well, first, remember these are their loans 100%. So you are being very generous to offer this.
If they are refinancing them in their own names anyway, what do you have to lose?
Parent PLUS Loans already have limited repayment plans, and they only offer PSLF **if** you re-consolidate them into Direct Consolidation Loans and it's the parent who's name on the loan works in public service - not you.
You might find this helpful: Parent PLUS Loan Guide (https://thecollegeinvestor.com/17101/options-if-you-cant-afford-your-parent-plus-loans/).