<p>I just refi’d the note on my house to 4.375% & was tempted to add some Parent PLUS principal to the loan amount, but in the end I didn’t. Yeah, I’m not thrilled about paying 7.9% (some at 6.125%), but I think it’s best to keep 'em separate. I can always apply for a deferment if my D is still in school & things get tough, but it’s kinda hard to forego a mortgage payment or two. In this economy, foreclosure follows!</p>
<p>And the US Dep’t. of Ed (or whomever they’ve farmed these PLUS loans out to) like earning that 7.9% juice, they want to keep it going, thus they don’t want you to default.</p>