9 Best Parent Loans for College: Parent PLUS and Private

Key facts

Pros

• More flexible repayment options for struggling borrowers compared with private lenders.

• All borrowers who attend a school authorized to receive federal aid can qualify.

Cons

• 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.

Qualifications

• 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.

Available Term Lengths

10 to 25 years once repayment begins, depending on the repayment plan.

Key facts

Pros

• You can see if you’ll qualify and what rate you’ll get without a hard credit check.

• Up to $2,500 can be disbursed to you directly for school-related expenses.

• You can choose your monthly payment while the student is in school, provided it covers at least the interest.

Cons

• No co-signer option.

• Estate is still responsible for the loan if the parent borrower dies.

Qualifications

• 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.

Available Term Lengths

Between 5 and 15 years.

Disclaimer

College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. As certified by your school and less any other financial aid you might receive. Minimum $1,000. Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation. This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 12/1/2022. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.

Key facts

Pros

• 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.

• Additional perks like career planning, job search assistance and entrepreneurship support available.

Cons

• Does not offer bi-weekly payments via autopay.

Qualifications

• Typical credit score of approved borrowers or co-signers: 700+.

• Minimum income: No minimum.

• Loan amounts: $5,000 minimum.

Available Term Lengths

5, 7, 10 or 15 years

Disclaimer

Fixed rates from 4.99% to 14.75% annual percentage rate ("APR") (with autopay), variable rates from 4.49% to 13.82% APR (with autopay). GRADUATE LOANS: Fixed rates from 5.25% to 14.48% APR (with autopay), variable rates from 4.99% to 13.82% APR (with autopay). PARENT LOANS: Fixed rates from 6.50% to 14.83% APR (with autopay), variable rates from 5.74% to 13.88% APR (with autopay). For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. Interest rates for variable rate loans are capped at 13.95%, unless required to be lower to comply with applicable law. Lowest rates are reserved for the most creditworthy borrowers. If approved for a loan, the interest rate offered will depend on your creditworthiness, the repayment option you select, the term and amount of the loan and other factors, and will be within the ranges of rates listed above. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Information current as of 11/14/2022.

Key facts

Pros

• Borrowers can finance undergraduate and graduate degree programs.

• Students do not have to attend college in Texas to qualify.

Cons

• Available only to parent borrowers in Texas.

Qualifications

• 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.

Available Term Lengths

5, 7, 10, 15, or 20 years

Disclaimer

Rates as of 12/05/2022. Lowest variable rate assumes a current Thirty-day Average Secured Overnight Financing Rate (SOFR) of % plus a 2.03% margin minus the 0.25% Auto-Pay Discount. If approved for a Brazos loan, the fixed or variable interest rate offered will depend on your creditworthiness, the term of the loan and other factors, and will be within the ranges of rates listed above. For the Brazos variable rate loan, the Thirty-day Average SOFR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the SOFR index increases. Auto-Pay Discount. The interest rate in effect will be reduced by 0.25% if either the borrower or the cosigner authorizes automated (ACH) payments from any bank account. This ACH interest rate reduction, referred to as the Auto-Pay Discount, applies only when full principal and interest payments are automatically drafted from a bank account. This interest rate reduction will not continue to apply during periods of approved forbearance or deferment. The Auto-Pay Discount will terminate if the automatic bank account payments discontinue or there are any three instances of insufficient funds at any time during the term of the loan. A borrower may requalify upon reauthorization of automatic payments from a valid bank account.This means that your payment may increase, or decrease, after disbursement. The variable rate is capped and will never exceed 9.90%. The rate is expressed as an APR. Since there are no fees associated with this loan, the APR is the same as the actual interest rate for the loan. While the APR, once you proceed, may differ slightly depending upon the calculation methods and certain assumptions, the base rate and margin that you are charged will remain as stated. Auto-Pay Discount includes a .25% interest rate reduction when either the borrower or cosigner authorizes ACH payments of full principal and interest from any bank account. Certain other terms and conditions apply.

Key facts

Pros

• Forbearance of 24 months is twice as long as most lenders.

• Loans are available for students enrolled less than half time.

Cons

• Loans may not be available depending on where you live or your child goes to school.

• Fewer repayment terms than other lenders offer.

• Estate is still responsible for the loan if the parent borrower dies.

• You can't see if you’ll qualify and what rate you’ll get without a hard credit check.

Qualifications

• 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.

Available Term Lengths

10 years

Key facts

Pros

• Income-based repayment plan available, with forgiveness after 25 years.

• You can see if you’ll qualify and what rate you’ll get without a hard credit check.

• Partial loan forgiveness for eligible internships; interest forgiveness for qualifying nurses.

Cons

• Fewer repayment terms available than other lenders.

Qualifications

• Typical credit score of approved borrowers: 768.

• Minimum income: $40,000.

• Loan amounts: $1,500 to $45,000.

Available Term Lengths

10 or 15 years

Key facts

Pros

• Forbearance of 24 months is longer than many lenders offer.

• No late fees.

Cons

• Only offers 2 loan terms.

Qualifications

• Typical credit score of approved borrowers or co-signers: 670.

• Minimum income: No minimum income.

• Loan amounts: $1,001 or $2,001, based on residency and school location, up to cost of attendance minus other aid received.

Available Term Lengths

10 or 15

Key facts

Pros

• Forbearance of 24 months is longer than many lenders offer.

• Non-freshmen with good grades may be able to qualify without a co-signer.

Cons

• You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.

• You must be an Indiana resident or attend a school in the state to qualify.

Qualifications

• Typical credit score of approved borrowers or co-signers: 710.

• Minimum income: $39,996.

• Loan amounts: $1,001 up to annual cost of attendance.

Available Term Lengths

5, 10 or 15 years

Key facts

Pros

• Offers 13 options for flexible post-graduation repayment, which is more than most lenders.

• Provides rate offer with soft credit check.

• Borrowers enrolled less than half-time can qualify.

Cons

• Does not disclose full underwriting requirements.

• Borrowers may not know what to expect with hardship forbearance as it is granted case-by-case.

• Does not allow bi-weekly payments via autopay.

Qualifications

• Typical credit score of approved borrowers: Did not disclose.

• Minimum income: $36,000

• Loan amounts: $1,000 with an aggregate loan limit of $125,000

Available Term Lengths

5, 10 or 15 years

Disclaimer

Fixed interest rates range from 4.49% APR (with auto debit discount) to 14.32% APR (without auto debit discount). Your interest rate will depend on your (and if applicable, your cosigner’s) credit qualifications. The fixed interest rate will remain the same for the life of the loan. Variable interest rates range from 4.28% APR (with auto debit discount) to 14.31% APR (without auto debit discount). Your interest rate will depend on your (and if applicable, your cosigner’s) credit qualifications. Variable rates may increase after consummation. Variable rates for Nelnet Bank Student Loans are calculated as the One-Month SOFR plus the applicable Margin percentage. Variable rates will be based on the highest One-Month SOFR as published by the Federal Reserve Bank of New York on the twenty-fifth day (or the next business day) of the immediately preceding calendar month. The variable rate may change on the first day of each month if the SOFR index changes. This may result in higher monthly payments. The current One-Month SOFR index is 4.08% as of December 1, 2022. The lowest interest rate for each loan type requires automatically withdrawn (“auto debit”) payments. The lowest rate is available only to the most creditworthy applicants. Not all borrowers will receive the lowest rate., The interest rate and Annual Percentage Rate (APR) may be higher depending upon (1) the credit history of the borrower and, if applicable, the cosigner, (2) the repayment option and loan term selected, and (3) the loan type selected. If approved, applicants will be notified of the rate qualified for within the stated range. Checking your rate results in a soft credit pull, which will not affect your credit score. If you continue with your application, Nelnet Bank will request your permission to obtain your full credit report from one or more consumer reporting agencies. This is a hard credit pull and may affect your credit score. Interest rate reduction of .25% for automatically withdrawn payments from any designated bank account (“auto debit discount”). Auto debit discount applies when full payments (including both principal and interest) are automatically drafted from a bank account. The auto debit discount will continue to apply during periods of approved forbearance or deferment if the auto debit discount was in effect at the time of receiving the forbearance or deferment. Auto debit discount will remain on the account unless (1) the automatic deduction of payments is cancelled or (2) there are three consecutive automatic deductions returned for insufficient funds at any time during the term of the loan. Subject to Credit approval.