You can consolidate all, just some, or even just one of your student loans.
Consolidating federal student loans may be a good strategy to lower monthly payments or to get out of default, but it is not always a good idea.
((When Congress created ICR in the 1990s it explicitly made Parent PLUS loans ineligible.
But a provision in the 2005 Higher Education Reconciliation Act meant to harmonize repayment plans between the Direct Loan program and the Federal Family Education Loan program indirectly undid that restriction, making Parent PLUS loans eligible for ICR if they consolidate their loan(s).
Parent PLUS student loans sure seem like a financial death trap.
Parents are encouraged to jump into them to help pay for school by taking out Parent PLUS student loans, and they think they are doing a good thing, but is it smart?
But those without other options are probably those least able to repay a PLUS loan.
This has already prompted higher education’s kludgeocracy to tinker with the program. A federal loan program for higher education works better as a loan program – it is the difference between a student’s current and future earning potential that justifies the loan, after all.If you borrowed federal Parent PLUS loans in over last four years, your loans likely have interest rates that range from 6.41% to 7.90%, plus the origination fees.Parent PLUS loans accrue interest from origination, and payments typically start right after the loan has been disbursed.WARNING: It is very dangerous to consolidate federal loans into a private consolidation loan.You will lose your rights under the federal loan programs once you choose to consolidate with a private lender.