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Guide to the Parent PLUS Double Consolidation Gap


Borrowers on Parent PLUS Loans are faced with something other than a student borrowing federal student loans. Parent PLUS credits remain in the name of the parent who withdrew them if they are kept in the federal system. They generally have much higher interest rates than direct loans and offer no lending options. There are also far fewer repayment options available for Eltern PLUS loans (e.g. amortized fixed and tiered standard repayment plans).

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