Consolidating parent plus loans to student

The final payment is no more than three times the initial payment.Extended repayment is a level repayment plan like standard repayment, but may use a repayment term of 12, 15, 20, 25 or 30 years, depending on the amount owed.Federal student and parent loans are both eligible for public service loan forgiveness.

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However, because Federal Parent loans that were repaid under these repayment plans to qualify for public service loan forgiveness.) But the debt will be paid in full after ten years of payments under standard repayment, theoretically leaving nothing left to forgive. Borrowers who entered repayment on or after July 1, 2006 may repay a Federal Direct Consolidation Loan under the income-contingent repayment plan even if the consolidation loan repaid Federal Parent loans are not eligible.

The Federal Direct Consolidation Loans are also eligible for 25-year forgiveness for borrowers who don’t qualify for public service loan forgiveness, after 25 years of payments under income-contingent repayment, standard repayment or the economic hardship deferment.

Federal Direct Consolidation Loans that refinance a Federal Parent loans, similar to the method suggested for federal student loans in Ask Kantro: People Retiring with Student Loans May Save Money with Income-Based Repayment.

They are, however, eligible for income-contingent repayment if they are included in a Federal Direct Consolidation Loan and the borrower entered repayment on or after July 1, 2006.

This consolidation loan may then qualify for public service loan forgiveness (), an earlier version of income-based repayment.

These repayment plans base the monthly loan payment on a percentage of discretionary income, as opposed to the amount you owe.They often yield a lower monthly payment than under other repayment plans, especially for borrowers whose total federal student loan debt exceeds their annual income.Federal parent education loans, such as the Federal Parent loan, are not eligible for income-contingent repayment, income-based repayment or pay-as-you-earn repayment.(Private student loans are also not eligible for income-contingent repayment, income-based repayment or pay-as-you-earn repayment.Private student loans, also known as alternative student loans, are non-federal loans that are not guaranteed or funded by the federal government.) All Federal student and parent loans are eligible for standard 10-year repayment, graduated repayment and extended repayment.Graduated repayment starts off with monthly payments at or slightly above an interest-only payment and increases the monthly payment every two years.