Parent PLUS Loans are no fun.
Paying them off can frustrate your financial plans and the interest they accumulate can be quite nauseating.
But there are better and smarter ways to repay Parent PLUS Loans so you can wave goodbye to that annoying debt forever.
Here are the top tried-and-tried strategies to get rid of Parent PLUS Loans quickly.
Before setting a goal like paying Parent PLUS Loans more quickly, it’s important to know how it can help you.
Although Parent PLUS Loans are taken out for an admirable cause — helping your child afford the college experience they’ve dreamed of — they can be a serious burden on your financial life.
The reason? Parent PLUS Loans often come with one of the worst interest rates of any federal student loan offered by the U.S. Department of Education. The government sets these standardized rates each year and they’re the same for every borrower — regardless of your credit score or debt-to-income ratio.
Because of their high rate, Parent PLUS Loans accumulate interest rapidly and relentlessly — making them difficult to manage and pay off on schedule. Plus, by the end of the loan, you end up paying much more then you originally took out.
But by focusing your financial efforts on ditching Parent PLUS Loans sooner, you’ll pay much less in interest costs and free up plenty of room in your monthly budget to achieve bigger and better aspirations.
And luckily, there are some easy and effective options to help pay Parent PLUS Loans fast.
One of the best methods to get rid of Parent PLUS Loans is through student loan refinancing. It’s a quick and simple strategy that’s extremely popular among parents. Here’s why so many people are refinancing their Parent PLUS Loans.
Parent PLUS Loan refinancing has four primary benefits:
Refinancing Parent PLUS Loans is actually a straightforward and simple process.
To refinance with PenFed, the first step is to check your rate offers through the Find My Rate tool. After completing a quick form with some basic information, you’ll be able to see if you qualify for a refinance — as well as the different rates and terms you can choose from.
Once you select your favorite rate and term, you’ll be taken to PenFed’s refinance application which only takes about 15 minutes to complete.
PenFed will then verify your submitted documentation needed for the application. If you are not already a member of the credit union, you’ll need to fill out a PenFed membership application. PenFed makes membership easy — once your loan closes, your membership will be set up for you.
After you receive your final approval, you can pick your final rate and term, review your loan, and e-sign.
Then PenFed takes care of the rest — paying off your remaining Parent PLUS Loan debt and setting up your new loan.
There are two primary drawbacks to keep in mind when refinancing Parent PLUS Loans:
If refinancing doesn’t sound like the right fit for your needs — or you’d like to combine refinancing with additional useful strategies — here are other smart solutions for paying Parent PLUS Loans fast.
If you’re serious about paying off your Parent PLUS Loans fast, refinancing is one of the most popular and valuable solutions.
For those who qualify, Parent PLUS Loan refinancing can be the perfect option for ditching that debt for good — while saving big on interest costs.
And with PenFed, the process is simple, quick, and effective. Start by Finding Your Rate and choosing the refinance option that’s best for your needs.
PenFed is federally insured by NCUA.