Best Student Loans for Parents: Parent PLUS and Private
Parents planning to borrow for a student's college expenses have two main options when it comes to student loans for parents: Parent PLUS loans, which are federal student loans issued to parents, and private loans that offered by banks and online lenders.
Here are our picks for the best parent loans for college, along with guidance on using parent student loans to finance your child's education.
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Why trust NerdWallet
- 19 student loans lenders reviewed and rated by our team of experts.
- 10+ years of combined experience covering higher education and consumer lending.
- Objective, comprehensive star-rating system assessing 40 categories and more than 50 data points across student loan origination and student loan refinance.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Best Student Loans for Parents: Parent PLUS and Private
Lender | NerdWallet editorial rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
5.0 /5 | Mid-600s | 2.74-17.99% | 3.89-17.99% | Read Review on NerdWallet | |
Best for customer support 4.0 /5 | 660 | 5.00-15.26% | 5.19-14.65% | Read Review on NerdWallet | |
5.0 /5 | Mid-600s | 3.87-16.73% | 5.70-16.73% | Read Review on NerdWallet |
Our pick for
Private parent loans for college
- Typical credit score of approved borrowers: Mid-700s.
- Minimum income: $70,000 per year.
- Loan amounts: $1,000 up to school-certified cost of attendance.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- You can choose your monthly payment while the student is in school, provided it covers at least the interest.
- No co-signer option.
- Estate is still responsible for the loan if the parent borrower dies.
Best for parents who want to help manage some of their student's spending.
- Offers loans to parents with students who are enrolled less than half-time.
- Allows bi-weekly payments via autopay.
- No co-signer option.
- The parent or borrower’s estate still has to cover loan payments if the parent borrower dies.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Multiple in-school repayment options available, including interest-only and flat-fee, and deferred for undergrad and grad students.
- Does not offer bi-weekly payments via autopay.
- Typical credit score of approved borrowers: 758.
- Minimum income: $35,000.
- Loan amounts: $1,000 up to your total cost of attendance.
- Option to skip one payment every 12 months.
- No late fees.
- Nine-month grace period is longer than most lenders offer.
- Loans aren't available in Nevada.
- Typical credit score of approved borrowers: Does not disclose.
- Minimum income: Does not disclose.
- Loan amounts: Minimum $1,000. Maximum depends on creditworthiness and debt-to-income ratio.
- Forbearance of 24 months is twice as long as most lenders.
- Loans are available for students enrolled less than half time.
- Fewer repayment terms than other lenders offer.
- Estate is still responsible for the loan if the parent borrower dies.
- You can't see what rate you’ll get without a hard credit check.
- You can pre-qualify and check what rate you’ll get without a hard credit check.
- The estate is not held responsible for repaying the loan if the parent borrower dies or is totally and permanently disabled.
- Parent loans cannot be transferred to their children.
Our pick for
Federal loan option for parents
Federal parent PLUS loans have fixed interest rates and minimal fees. Parent borrowers must not have any adverse credit history to qualify.
- Parent PLUS loan borrowers must not have adverse credit history.
- Borrowers with adverse credit history can still receive a parent PLUS loan by enlisting a co-signer without adverse credit history or documenting extenuating circumstances for their credit history.
- Loan amounts: Total cost of attendance minus other financial aid.
- More flexible repayment options for struggling borrowers compared with private lenders.
- All borrowers who attend a school authorized to receive federal aid can qualify.
- May have higher interest rates compared with private lenders.
- You pay an origination fee.
- You can’t see if you’ll qualify without a hard credit check.
Federal PLUS loans are available to parents of undergrads as well as graduate students. They are best for parents who may need the safety net they offer, like income-contingent repayment after consolidation, and for grad students who have hit limits on lower-interest unsubsidized loans.
Our pick for
Parent college loans for Texans
- Typical credit score of approved borrowers: N/A
- Minimum income: $60,000 for co-signer or primary borrower, or $30,000 for primary borrower if applying with a co-signer.
- Loan amounts: $10,000 up to $400,000.
- Borrowers can finance undergraduate and graduate degree programs.
- Students do not have to attend college in Texas to qualify.
- Available only to parent borrowers in Texas.
What is a federal direct PLUS loan for parents?
Federal direct PLUS loans are government loans that parents can take out to help pay for a child's college education. They have higher interest rates and fees and qualify for fewer repayment plans than federal direct loans for students.
How do parent PLUS loans work?
To be eligible for a parent PLUS loan, you’ll need to be a biological or adoptive parent of a dependent undergraduate student who is enrolled at least half-time in school. In some cases, stepparents are also eligible, but grandparents do not qualify — even if they’ve raised the student — unless they have legally adopted the dependent student.
» MORE: Are you eligible for a parent PLUS loan?
Are parent PLUS loans federal or private?
Parent PLUS loans are provided by the U.S. Department of Education, which makes them federal student loans. In contrast, private student loans are available from entities such as banks and credit unions.
Can I get a parent PLUS loan with bad credit?
You will undergo a credit check when applying to parent PLUS loans. However, if you have adverse credit history there are options. You can find an endorser with good credit, which is a person who agrees to repay the loan if you do not. The child you are seeking funding for cannot be your endorser.
A second option is to provide documentation outlining extenuating circumstances for why you have adverse credit history. For either option, you’ll need to complete required credit counseling.
What is the interest rate for parent PLUS loans?
The interest rate for federal direct PLUS loans is 8.94% for the 2025-26 academic year. There is also an origination fee of 4.228% of the loan amount, which is deducted from each loan disbursement.
» MORE: How Black parents can avoid the parent PLUS loan debt trap
What is better: A parent PLUS loan or private loan?
Choosing between federal and private college loans for parents depends on several factors, including your credit profile, employment outlook and overall financial health.
To help you assess if a parent PLUS loan or private loan is right for you, here are some points to consider.
If your finances are secure and you expect your income to remain steady, you may qualify for a low rate on a private student loan. These loans also have no origination fees.
If your finances are solid, but you foresee future gaps in your income, a loan with relevant safety nets may be best. Parent PLUS loans offer an income-contingent repayment option and extend death and disability discharges to parent borrowers. Only some private loans offer income-based repayment or the death and disability discharge.
If you're building your finances and don't meet private loan requirements, a PLUS loan — which has looser credit requirements — is likely best for you.
Before taking parent student loans, make sure that:
Your child has maxed out federal student loan options.
You’re saving enough for retirement.
You’re managing high-interest debt like credit cards.
Assuming your child has exhausted federal student loan options and your finances are sound, consider a parent PLUS loan if:
You work for the government or a 501(c)(3) nonprofit and want to pursue Public Service Loan Forgiveness.
You may not have steady income for the duration of the loan term.
Your credit isn't strong enough to qualify for a lower rate with a private parent loan.
» MORE: Estimate monthly payments using a parent PLUS loan calculator
How to apply for parent PLUS loan
Plan to spend at least 20 minutes completing the parent PLUS loan application. It must be completed in a single session. However, you may need more time to gather up required documents and to complete the FAFSA first.
Fill out the Free Application for Federal Student Aid. To apply for a PLUS loan, fill out the FAFSA with your child. NerdWallet's FAFSA guide can help.
Check your credit. If you have a security freeze on your credit file, remove it from each credit bureau. Review your credit report for any errors, and do what you can to build your credit before you apply.
Complete the direct PLUS loan application for parents. You’ll need your verified FSA ID, your requested loan amount, school name, student information, personal information and employer’s information.
How to apply for private student loans
You can apply for a private parent student loan directly with the lender.
Shop around. Before signing up for a private parent loan, shop around to find the lowest student loan interest rate you qualify for. Also look for information on origination, prepayment or late fees, and how easily you can reach the lender if you have an issue.
Consider pre-qualifying. Some lenders have a pre-qualification process that allows you to see a personalized rate before the lender does a hard credit pull. This can give you an idea of which loans you may be eligible to receive before making any commitments.
Choose a fixed rate. Fixed interest rates do not change over time and are a better option over variable rates that may fluctuate throughout the lifespan of the loan.
What are repayment options for parent PLUS loans?
Parent PLUS borrowers have several repayment options. The first is the standard repayment plan, which is the one you’ll automatically get unless you specify otherwise. With the standard repayment plan, your payments are fixed for a term of up to 10 years.
The other key repayment option is the Income-Contingent Repayment (ICR) plan. Under this plan, payments are capped at 20% of your discretionary income. The repayment term is extended to up to 25 years, at which point any remaining debt is forgiven.
Note that the budget reconciliation bill, passed in July, will change Parent PLUS repayment options and borrowing limits. Read 8 Major Student Loan Changes From Trump’s Budget Bill to learn about changes for Parent PLUS loans.
» MORE: Parent PLUS loan deferment: Do you have to pay right away?
Are parent PLUS loans eligible for student loan forgiveness?
You may be eligible for student loan forgiveness under certain situations. For example, you could seek Public Service Loan Forgiveness, but you would need to first consolidate your loan into a direct consolidation loan and then enroll in an Income Contingent Repayment Plan (ICR).
Can a parent PLUS loan be transferred to the student?
A parent PLUS loan cannot be transferred from a parent to student. The only way to transfer parent loans is to have your child refinance the loan with a private lender in their name.
Last updated on January 12, 2026
Frequently asked questions
Are parents responsible for student loans?
Parents are responsible for student loan repayments only in certain circumstances. If a parent takes out a federal direct parent PLUS loan to help pay for their child’s college, the parent is the borrower and solely responsible for repaying the loan. Parents are legally responsible for repaying a private student loan only if they co-signed the loan or took it out in their name. Make sure you and your child work out clear plans for repayment before getting a parent student loan.
Can more than one parent take out a parent PLUS loan for the same student?
Yes, for example, if a student’s biological or legal adoptive parents are divorced, each parent can take out a parent PLUS loan. Each parent must individually meet credit requirements and complete their own application.
However, the total, combined amount borrowed by the parents cannot exceed the student’s cost of attendance minus other financial aid. Communication is key to avoid over-borrowing and to ensure manageable repayment plans.
Will getting a parent PLUS loan affect a parent’s credit?
Yes, parent PLUS loans are reported to the credit bureaus under the parent borrower’s name. Like other loans, missed payments or default can hurt your credit, while consistent on-time payments may help maintain or improve it.
Additionally, because these loans increase your total debt load, they can affect your debt-to-income ratio — something lenders consider when you apply for other forms of credit, such as a mortgage or auto loan.
What are the best college loans for parents?
Federal parent PLUS loans and private parent loans are the most common college loans for parents. The best option depends on your financial situation — PLUS loans offer flexible repayment and forgiveness options, while private loans may offer lower rates if you have excellent credit.
What is a private student loan?
Private student loans are provided by nonfederal lenders. This includes banks, credit unions and state agencies, among others. Terms and conditions for private student loans are set by each lender, whereas federal student loan terms are determined by law. Private student loans are often more expensive than federal loans.
How we chose the best student loans
Our team of student loan experts follows an objective and robust methodology to rate lenders and pick the best.
19
Lenders reviewed
19
Lenders reviewed
We reviewed 19 banks, credit unions, and online lenders — including the top 10 by market share and search volume — plus lenders serving niche and nontraditional borrowers.
40
Features assessed
40
Features assessed
Each lender is evaluated across five weighted categories, covering dozens of features related to affordability, eligibility, consumer experience, flexibility, and application process.
50+
Data points analyzed
50+
Data points analyzed
Our team tracks and reassesses more than 50 data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.
Star rating categories
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
5.0
Overall score
NerdWallet reviewed 19 banks, credit unions and online lenders offering student loans and student loan refinancing. We included the top 10 lenders by market share and the top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets. Some lenders are NerdWallet partners, but this did not influence our selection of the winner.
We consider 40 features and more than 50 data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to a wide range of borrowers in all states, extended grace periods and in-house customer service.
The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star. Read more about our ratings methodologies for student loans and our editorial guidelines.
NerdWallet's Best Student Loans for Parents: Parent PLUS and Private
- College Ave Parent Student Loan: Best for Private parent loans for college, Fixed APR: 2.74-17.99%
- Ascent Parent Loan: Best for Private parent loans for college, Fixed APR: 5.00-15.26%
- SoFi Parent Loan: Best for Private parent loans for college, Fixed APR: 3.87-16.73%
- Federal Parent PLUS Loan: Best for Federal loan option for parents, Fixed APR: 8.94-8.94%
- Brazos Parent Loan: Best for Parent college loans for Texans, Fixed APR: 2.70-6.85%
- Earnest Parent Loan: Best for Private parent loans for college, Fixed APR: 2.89-14.90%
- Advantage Education Loan Parent Loan: Best for Private parent loans for college, Fixed APR: 5.29-8.04%
- ISL Parent Loan: Best for Private parent loans for college, Fixed APR: 3.70-8.75%