Income-Driven and Parent PLUS-A bad combination

Sometimes it feels as though Parent PLUS loans run by their own set of rules.  And in many ways they do.  One of the many ways they differ is the way they react with Parent PLUS loans.

To be official and technical Parent PLUS loans can never be put on an Income Driven Repayment plan.  If you try they will be denied every time.  There is one way around this though.  If you consolidate a Parent PLUS loan it can be “hidden” from the Income Contingent Repayment plan and be able to qualify for that plan.  No matter what, consolidated or not, you can never have a Parent PLUS loan placed on the IBR or Pay As You Earn plans.

Because the Income Contingent plan is the most expensive of the three plans, it may not be worth consolidating.  I would advise before you go forward with consolidation (unless there are other reasons you want to consolidate) to check through a repayment estimator to see the estimate on what your payment might look like.  These estimators are available on your servicers website or by visiting the Federal Student Aid site.