College Loan Consolidation, Federal Loan Consolidation, Private Loan Consolidation, Student Loan Consolidation

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What is a PLUS loan?
Am I eligible for a PLUS loan?
How do I apply for a PLUS loan?
Is there a credit check involved with a PLUS Loan?
How much can I borrow with a PLUS Loan?
How will the PLUS loans be disbursed?
What is the interest rate on PLUS loans?
Are there any pre-payment penalties on PLUS loans?
What is the repayment term for a PLUS loan?
Is it ever possible to postpone repayment of a PLUS loan?
Are there any charges for a PLUS loan?
What if I have other questions?
Q: What is a PLUS loan?
A: PLUS Loans are low-interest education loans that cover the cost of college attendance minus any other financial aid. These loans are available to the parents of certain undergraduate students as well as to graduate or professional students.
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Q: Am I eligible for a PLUS loan?
A: To be eligible, you must:
  • Provide a valid Social Security number
  • Pass a credit check
  • Be a natural, step, or adoptive parent of a dependent student OR Be a graduate or professional student
  • Be a U.S. citizen or eligible non-citizen
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Q: How do I apply for a PLUS loan?
A: Completing an easy application is all that it takes to apply for a federal PLUS loan through EdFed. The application will then be sent to you after approval of your credit check and verification of your application information. You only need to sign and return it in the enclosed envelope, and your part is done!

You can have a loan equal to your child's total school-related expenses. So you need not worry if your child has already enrolled in college as the educational costs already incurred can still be covered by applying retroactively.
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Q: Is there a credit check involved with a PLUS Loan?
A: Yes. EdFed needs to verify that you have no such credit history that works against you. However, don't despair if you do have a poor credit history. You still stand a chance of qualifying for a PLUS loan through our EdFed Second-Chance Program.
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Q: How much can I borrow with a PLUS Loan?
A: You can borrow up to 100% of the estimated cost of your child's education. This includes tuition, accommodation, books, transportation, and additional expenses. Any financial aid received by the student, however, is deducted from the amount eligible for the loan.
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Q: How will the PLUS loans be disbursed?
A: PLUS loan is disbursed directly to the school. Next, the school will verify the student's enrollment and will use the funds for tuition, room and board, and other additional expenses. If the school is authorized to give the remaining funds to the student or place them in a student account, it will do so. Otherwise, any remaining money is sent to the parent.
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Q: What is the interest rate on PLUS loans?
A: The interest rate on FFELP PLUS loans disbursed after 7/1/06 are fixed at 8.5%. The interest rate on PLUS loans disbursed between 7/1/98 and 6/30/06 are variable and adjusted every July 1 (based on the 91-day T-Bill + 3.1%), but will not exceed 9.0%. For information on the current PLUS loan interest rates, please contact an EdFed loan specialist.
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Q: Are there any pre-payment penalties on PLUS loans?
A: No. There are no pre-payment penalties on PLUS loans. Further, any amount you pay in excess of your minimum payment will be applied directly to the principal and not the interest.
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Q: What is the repayment term for a PLUS loan?
A: Normally, a PLUS loan is paid over a term of 10 years. Repayment is scheduled to begin within 60 days of the last loan disbursement. At this stage, you are eligible to consolidate your loans and lock in low interest rates in order to save money.
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Q: Is it ever possible to postpone repayment of a PLUS loan?
A: Yes. In certain situations, deferment or forbearance benefits can be availed for your loan. If eligible for these, you could postpone or lower your monthly payments.
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Q: Are there any charges for a PLUS loan?
A: Yes. A combined fee of up to 4% of the loan is charged. Of this, 3% goes to the federal government as origination fee and the remaining 1% to the guaranty agency as guarantee fee. The fee does not need to be paid up-front, but is deducted proportionately from each loan disbursement.
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Q: What if I have other questions?
A: For answers to any other questions that you may have, please email us or speak with an expert loan advisor at (800) 821-5659.
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How EdFed Helped others!
When I first contacted EdFed, I knew nothing about consolidation. All I knew is that there was a deadline. The customer service representatives at EdFed were able to explain everything to me in terms that I could understand. I owe a substantial amount of money in student loans, and I didn't even know who my lenders were. EdFed was able to compile this information for me, calculated my low fixed interest rate, and explain their money saving benefits. Other lenders weren't even accepting phone calls prior to the deadline! Thank you for taking the time to go over my consolidation with me.
- Maya T.  Dallas, TX
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Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.

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Schools Will No Longer Receive Paper FAFSA Forms
(September 20, 2007)

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