Are there other eligibility requirements for the PLUS Refinance Loan?
Yes, in addition to income, employment history, and credit requirements, the borrower must be in active repayment on their existing PLUS loans and have graduated from an approved school . In the case of a parent looking to refinance their Parent PLUS loan, the student for whom the loan was taken must have graduated from an approved school.
How do I apply?
You can quickly and easily apply online. As part of the loan application process, applicants will receive detailed instructions on additional documentation that must be submitted in order to complete the loan process. If you have questions, please call our student loan representatives at 866-438-9510.
What am I giving up by refinancing a federal loan into a private loan?
We’re obviously big fans of our PLUS Loan Refinance, but it may not be the right choice for everyone. Federal loans do offer certain benefits and protections that do not transfer to a private loan. It is very important that you take this into consideration before refinancing to determine if any federal benefits apply to you.
For example, Grad PLUS loans are eligible for an Income-Based Repayment (IBR) Plan, which allows borrowers to make reduced monthly payments if they experience financial hardship. This type of benefit certainly could be helpful for some borrowers, and would not be available to borrowers if they refinanced to a private loan. Another item to consider is that federal student loans are discharged if the borrower dies (Grad PLUS and Parent PLUS), or if the student on whose behalf you obtained the loan dies (Parent PLUS).
It is very important that you take these types of benefits into consideration before refinancing. Ultimately, if you are a borrower with a secure job, emergency savings, strong credit, and are unlikely to need any of the options available to distressed borrowers of government loans, a refinance of your PLUS loans into a private student loan may be attractive to you. Please review this important disclosure for more information.
How much can I borrow?
Once approved, you can borrow from $5,000 up to $100,000. Make sure to review your existing loans carefully so that you borrow the exact amount you need.
[Note: The amount of your refinance loan will be based on existing loan balances as indicated by statements that you will need to provide as part of the loan application process. You may want to consult with your original loan providers to confirm the loan balances, thus ensuring that your consolidation loan is neither over- nor under-funded.]
Why should I refinance my federal PLUS loans into a private loan with a credit union?
The most important reason to consider our PLUS Loan Refinance is very simple . . . to save money. PLUS loans are a great option for many parents and grad students when filling educational funding gaps. However, until the summer of 2013, all PLUS loans originated over the last several years carried an interest rate of at least 7.9%. Similar to homeowners who’ve taken advantage of today’s historically low rates to refinance their mortgages and save thousands of dollars, we wanted to create a unique refinance program to give PLUS loan borrowers that same opportunity.
Is there an origination fee?
No. There are no origination fees with our PLUS Loan Refinance.
How much could I really save?
Our PLUS Loan Refinance offers several rate and repayment options:
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5.99% fixed rate – 5 year repayment term1
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6.49% fixed rate – 10 year repayment term2
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7.49% fixed rate – 15 year repayment term3
To give you some perspective, if you refinance $48,000 in loans, moving from a 7.9% rate (10-year repayment term) to a 6.49% rate (10-year repayment term), you could lower your monthly payment by more than $50 and save approximately $4,200 over the life of the loan. And consider this, if you’re in a position to afford higher monthly payments, you could refinance to a 5-year repayment term at a rate of 5.99% and save nearly $14,000 over the life of the loan.4
To calculate exactly how much you could save, please use our Refi Calculator.
Repayment Examples:
1For a $48,000 refinance loan for a term of 5 years with a 5.99% APR, the monthly payment will be $927.75. All loans are subject to approval and restrictions may apply. Workers' Credit Union reserves the right to change rates for new applications at any time and without notice.
2For a $48,000 refinance loan for a term of 10 years with a 6.49% APR, the monthly payment will be $544.79. All loans are subject to approval and restrictions may apply. Workers' Credit Union reserves the right to change rates for new applications at any time and without notice.
3For a $48,000 refinance loan for a term of 15 years with a 7.49% APR, the monthly payment will be $444.69. All loans are subject to approval and restrictions may apply. Workers' Credit Union reserves the right to change rates for new applications at any time and without notice.
Important:
Please remember that federal loans do offer certain benefits and protections that do not transfer to a private loan. By refinancing your federal PLUS loans to a private loan you will lose any federal benefits that may apply to you. Please review this important disclosure for more information.