Refinancing parents plus loan

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Refinancing parents plus loan

Postby tbebee » Sat Mar 07, 2009 5:41 am

I currently have a Parents Plus loan with Citibank that I am repaying. The interest rate is 8% and I was wondering if it is possible to refinance the loan with another lender to decrease the interest rate. I am paying the loan each month on-time and adding extra money to reduce the principal. Just wondering if it would be possible to reduce the interest rate. Also I only have the one loan, so it probably does not qualify for consolidation.

TIA

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Re: Refinancing parents plus loan

Postby Ms. Stafford » Mon Mar 09, 2009 7:31 am

Hello, Federal loans can not be refinanced for a different rate. If you took the loan out after July 1 of 2006, then your interest rate is a fixed rate and cannot be changed. It is good you are paying down the principal because that will save you $, but reducing the rate is not an option at this time.
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