Parent's PLUS Consolidation

[NC600s]

Well I graduated almost 3 years ago with about 20K in my name and about 50K in my parents' name. My graduation present was, guess what, my parent's PLUS loan. I have been paying this off for almost 3 years now, with no tax benefit (it's in my Dad's name), with a spectacular interest rate of about 8%. I still have about 18 yrs. left on the loan.

 

They've already consolidated once. Any way to consolidate this again? I also want to see if I can gain some kind of tax benefit (I'm the one paying it off, and my parents get to deduct it).

 

Any help is greatly appreciated.

 

thanks

[fla-tan]

NC600s

 

The only way you could take the PLUS Consolidation loan out of your parent's name would be to take out a private loan and pay it off. That wouldn't benefit you taxwise. Federally Guaranteed Loans are tied to the borrower's specific SSN and they can not be transferred.

 

BTW, unless your father consolidated the loans back in 2000, then the rate will either be lower than that if he did already consolidate. If he hasn't consolidated, then the rates are variable and the current rate should be around 4.25%.

 

 

fla-tan

[glorya]

"Federally Guaranteed Loans are tied to the borrower's specific SSN and they can not be transferred."

 

This confuses me because in the case of default (my particular situation), they are reporting on both Parent's and Student's credit reports and collection agencies are contacting both myself and parents for money.

 

Please advise.