9 Best Parent Loans for College: Parent PLUS and Private
Don’t take on debt for your child unless you’re in a strong financial position yourself.
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Parent PLUS loans are federal student loans that are issued to parents. Parents looking to borrow money for their child's education can also look to private loans offered by banks and online lenders. Private loans generally don't come with fees, unlike federal parent PLUS loans.
When deciding between a PLUS loan or private loan, think about your current financial situation and employment outlook.
If you have solid finances and expect to be able to work the entirety of your loan term, a private student loan may be a better deal. Private student loans often offer lower interest rates and typically don't have origination fees.
If your finances are solid, but you foresee an impediment to your ability to work during your loan term, look for a loan with safety nets that are relevant to your situation. The PLUS loan offers an income-based repayment option and extends death and disability discharges to the parent borrower. A few private loans may also offer the death and disability discharge, like ISL Student Loans, or income-based repayment, like RISLA student loans.
If you are building your finances and don't meet private loan requirements, a PLUS loan is likely best for you as they don't have strict credit requirements.
Before taking out parent student loans, make sure that:
Your child has maxed out federal student loan options.
You’re saving enough for retirement.
You’ve paid off high-interest debt, like credit cards.
» MORE: Should parents pay for college?
If you decide to move forward, here are our picks for the best parent student loans and information on financing your child's education.
Best Parent Loans for College: Parent PLUS and Private
| Lender | NerdWallet Rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
5.0/5 Best for Federal loan option for parents | None | 7.54-7.54% | N/A | ||
5.0/5 Best for Private parent loans for college | Mid-600s | 4.74-15.32% | 4.74-15.32% | Check rateon College Ave's websiteon College Ave's website | |
4.5/5 Best for Private parent loans for college | Mid-600s | 4.49-13.80% | 5.49-13.07% | Check rateon SoFi's websiteon SoFi's website | |
 Discover Undergraduate and Graduate Student Loans Check rateon Discover's websiteon Discover's website | 4.0/5 Best for Private parent loans for college | Does not disclose | 5.49-15.99% | 5.87-16.72% | Check rateon Discover's websiteon Discover's website |
4.0/5 Best for Private parent loans for college | 720 | 2.80-6.48% | 4.67-8.57% | Check rateon Brazos' websiteon Brazos' website | |
4.5/5 Best for Private parent loans for college | Does not disclose | 2.84-6.23% | N/A | ||
4.5/5 Best for Private parent loans for college | 680 | 4.99-6.86% | N/A | ||
5.0/5 Best for Private parent loans for college | 670 | 3.85-7.91% | 4.44-8.89% | ||
4.0/5 Best for Private parent loans for college | 670 | 4.62-8.08% | 6.11-9.91% |
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.
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, and for grad students who have hit limits on lower-interest unsubsidized loans.
- 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.
- 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.
Our pick for
Private parent loans for college
College Ave Parent Student Loan
Mid-600s
4.74-15.32%
4.74-15.32%
- 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.
- 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.
SoFi Private Student Loan
Mid-600s
4.49-13.80%
5.49-13.07%
- 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.
- Does not offer bi-weekly payments via autopay.
- Typical credit score of approved borrowers or co-signers: 700+.
- Minimum income: No minimum.
- Loan amounts: $1,000 minimum.
Discover Undergraduate and Graduate Student Loans
Does not disclose
5.49-15.99%
5.87-16.72%
- International and DACA students can qualify with a qualified U.S. citizen or permanent resident co-signer.
- No late fees.
- You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.
- Minimum income: Did not disclose.
- Loan amounts: $1,000 minimum. Borrow up to 100% of school-certified cost of attendance — including tuition, housing, book and more — minus financial aid. Aggregate loan limits apply.
- 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.
- 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.
Advantage Education Loan Parent Loan
Does not disclose
2.84-6.23%
N/A
Advantage Education Loans are fixed-rate loans with borrower-friendly features, such as no late fees and a generous amount of forbearance. These loans are from the nonprofit Kentucky Higher Education Student Loan Corp. and are available outside Kentucky, but not in every state.
- Forbearance of 24 months is twice as long as most lenders.
- Loans are available for students enrolled less than half time.
- 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.
- 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.
RISLA Private Student Loan
680
4.99-6.86%
N/A
Best for parents who want to reduce child's debt levels.
- 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.
- Fewer repayment terms available than other lenders.
- Typical credit score of approved borrowers: 768.
- Minimum income: $40,000.
- Loan amounts: $1,500 to $45,000.
ISL Private Student Loan
670
3.85-7.91%
4.44-8.89%
- Forbearance of 24 months is longer than many lenders offer.
- No late fees.
- Only offers 2 loan terms.
- 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.
INvestED Student Loan
670
4.62-8.08%
6.11-9.91%
- Forbearance of 24 months is longer than many lenders offer.
- Non-freshmen with good grades may be able to qualify without a co-signer.
- 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.
- Typical credit score of approved borrowers or co-signers: 710.
- Minimum income: $39,996.
- Loan amounts: $1,001 up to annual cost of attendance.
Types of parent student loans
There are two types of loans available for parents: federal direct PLUS loans and private student loans.
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 subsidized and unsubsidized loans for students.
The interest rate for federal direct PLUS loans is 7.54% for 2022-23. There is also an origination fee of 4.228%, which is deducted from each loan disbursement.
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 won't 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 get a parent student loan
To apply for a PLUS loan, fill out the Free Application for Federal Student Aid with your child. NerdWallet's FAFSA guide can help. Then, complete the direct PLUS loan application for parents.
You can apply for a private parent student loan directly with the lender.
Before signing-up for a private parent loan, shop around to find the lowest student loan interest rate you qualify for. Some lenders have a pre-qualification process that allows you to see a personalized rate before the lender does a hard credit pull.
Who pays a parent student loan?
Make sure you and your child work out clear plans for repayment before taking out a parent student loan. The loan will ultimately be your responsibility to repay. The only way to transfer parent loans is to have your child refinance the loan in his or her name.
Last updated on February 17, 2023
NerdWallet's Best Parent Loans for College: Parent PLUS and Private
- Federal Parent PLUS Loan: Best for Federal loan option for parents
- College Ave Parent Student Loan: Best for Private parent loans for college
- SoFi Private Student Loan: Best for Private parent loans for college
- Discover Undergraduate and Graduate Student Loans: Best for Private parent loans for college
- Brazos Parent Loan: Best for Private parent loans for college
- Advantage Education Loan Parent Loan: Best for Private parent loans for college
- RISLA Private Student Loan: Best for Private parent loans for college
- ISL Private Student Loan: Best for Private parent loans for college
- INvestED Student Loan: Best for Private parent loans for college
