Consolidating defaulted federal student loans
23-Oct-2020 19:13
Interest Rates for Newer Loans: PLUS loans come in two varieties: 1) Parent PLUS loans are for parents borrowing for the education of dependent undergraduate children enrolled in school at least half time and 2) “Grad PLUS” loans are available for graduate and professional students.
The total amount of Stafford loans, including both subsidized and unsubsidized, that undergraduates can borrow is ,000 for dependent students and ,500 for independent students.The limits vary for each year of study, depending on the length of the program and the student’s year of study.There is more information on Stafford loan limits on the Department of Education’s web site.The bad news is that the federal government has extraordinary powers to collect student loans if you default.
These powers, such as tax refund and federal benefits offsets, have no time limit.
The fixed interest rate for undergraduate Stafford loans first disbursed on or after July 1, 2019 and before July 1, 2020 is 4.53%. Most older loans from before July 2006 have variable interest rates.
