Time is running out for parents who took out college loans for their children and want to keep affordable repayment and debt-forgiveness options.
Because of new rules on student loans, parents who borrowed federal parent PLUS loans and want to keep monthly payments low need to apply soon to merge the loans into a new loan – a step known as consolidation. That will keep them eligible for a plan that bases monthly payments on their income as well as for loan forgiveness programs.
While the formal deadline for consolidating parent PLUS loans is June 30, it’s much sooner in practice, to allow time to process applications and pay out the loans.
The government, in advice on a Federal Student Aid website, “strongly”…