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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.

By
Cecilia Clark
Feb 17, 2023

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Best Parent Loans for College: Parent PLUS and Private

LenderNerdWallet RatingMin. credit scoreFixed APRVariable APRLearn more
Federal Parent PLUS Loan

Federal Parent PLUS Loan

Read review
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
SoFi Private Student Loan

SoFi Private Student Loan

4.5/5
Best for Private parent loans for college

Mid-600s

4.49-13.80%

5.49-13.07%

Discover Undergraduate and Graduate Student Loans

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
Brazos Parent Loan

Brazos Parent Loan

4.0/5
Best for Private parent loans for college

720

2.80-6.48%

4.67-8.57%

Advantage Education Loan Parent Loan

Advantage Education Loan Parent Loan

4.5/5
Best for Private parent loans for college

Does not disclose

2.84-6.23%

N/A

RISLA Private Student Loan

RISLA Private Student Loan

4.5/5
Best for Private parent loans for college

680

4.99-6.86%

N/A

ISL Private Student Loan

ISL Private Student Loan

5.0/5
Best for Private parent loans for college

670

3.85-7.91%

4.44-8.89%

INvestED Student Loan

INvestED Student Loan

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 Parent PLUS Loan
Read review
Federal Parent PLUS Loan

Federal Parent PLUS Loan

5.0
NerdWallet rating
Min. credit score

None

Fixed APR

7.54-7.54%

Variable APR

N/A

Key facts

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.

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 Lengths10 to 25 years once repayment begins, depending on the repayment plan.

Our pick for

Private parent loans for college

Key factsBest for parents who want to control some of their student's spending.
Pros
  • 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.
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 LengthsBetween 5 and 15 years.
DisclaimerCollege 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 3/1/2023. 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.
SoFi Private Student Loan

SoFi Private Student Loan

4.5
Min. credit score

Mid-600s

Fixed APR

4.49-13.80%

Variable APR

5.49-13.07%

Key factsBest for flexible repayment options and no fees.
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: $1,000 minimum.
Available Term Lengths5, 7, 10 or 15 years
DisclaimerUNDERGRADUATE LOANS: Fixed rates from 4.49% to 13.80% annual percentage rate ("APR") (with autopay), variable rates from 4.99% to 13.07% APR (with autopay). GRADUATE LOANS: Fixed rates from 5.25% to 13.60% APR (with autopay), variable rates from 5.49% to 13.07% APR (with autopay). PARENT LOANS: Fixed rates from 6.50% to 13.98% APR (with autopay), variable rates from 6.32% to 13.13% 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 01/30/2023.
Discover Undergraduate and Graduate Student Loans
Check rateon Discover's websiteon Discover's website
Discover Undergraduate and Graduate Student Loans

Discover Undergraduate and Graduate Student Loans

Min. credit score

Does not disclose

Fixed APR

5.49-15.99%

Variable APR

5.87-16.72%

Check rateon Discover's websiteon Discover's website
Key facts Best for borrowers with strong finances.
Pros
  • International and DACA students can qualify with a qualified U.S. citizen or permanent resident co-signer.
  • No late fees.
Cons
  • You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.
Qualifications
  • 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.
Available Term LengthsVisit Lender Website
DisclaimerAPR ranges vary by loan type and the lowest available APR may be higher than what is shown here. Lowest APRs are available to the most creditworthy applicants, and include an interest-only repayment discount and Auto Debit Reward. Applying with a creditworthy cosigner may improve your likelihood for loan approval and you may receive a lower interest rate. The fixed interest rate is set at the time of application and does not change during the life of the loan unless you are no longer eligible for one or more discounts. The variable interest rate and corresponding APR may increase over the life of the loan. The variable interest rate is calculated based on the 3-Month CME Term SOFR index plus the applicable margin percentage less any applicable discounts. The 3-Month CME Term SOFR index value for variable interest rate loans is 4.625% as of January 1, 2023. 3-Month CME Term SOFR is administered by CME Group and is published by CME Group on its website (cmegroup.com/termsofr). Discover Student Loans may adjust the variable interest rate quarterly on each January 1, April 1, July 1 and October 1 (each an “interest rate change date”), based on the 3-Month CME Term SOFR rate available for the day that is 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125), or 0%, whichever is greater. This may cause the monthly payments to increase, the number of payments to increase or both. If the 3-Month CME Term SOFR rate is less than zero percent, then the index will be deemed to be zero percent (as stated in the promissory note) for purposes of calculating your interest rate. Your variable interest rate (index + margin – applicable discounts) will not exceed 18%. Our lowest APRs are only available to applicants with the best credit. The APR will be determined after an application is submitted. It will be based on credit history, the selected repayment option and other factors, including a cosigner’s credit history (if applicable). If a student does not have an established credit history, the student may find it difficult to qualify for a private student loan on their own or receive the lowest advertised rate. Learn more about Discover Student Loans interest rates at DiscoverStudentLoans.com/Rates.
Brazos Parent Loan

Brazos Parent Loan

Min. credit score

720

Fixed APR

2.80-6.48%

Variable APR

4.67-8.57%

Key factsBrazos is best for parent loan borrowers who live in Texas and want to finance undergraduate or graduate education for their children.
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
DisclaimerRates as of 3/01/2023. 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.
Advantage Education Loan Parent Loan

Advantage Education Loan Parent Loan

Min. credit score

Does not disclose

Fixed APR

2.84-6.23%

Variable APR

N/A

Key facts

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.

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 Lengths10 years
RISLA Private Student Loan

RISLA Private Student Loan

Min. credit score

680

Fixed APR

4.99-6.86%

Variable APR

N/A

Key facts

Best for parents who want to reduce child's debt levels.

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 Lengths10 or 15 years
ISL Private Student Loan

ISL Private Student Loan

Min. credit score

670

Fixed APR

3.85-7.91%

Variable APR

4.44-8.89%

Key factsBest for low-interest loans with consumer-friendly features, like a generous forbearance policy.
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 Lengths10 or 15
INvestED Student Loan

INvestED Student Loan

Min. credit score

670

Fixed APR

4.62-8.08%

Variable APR

6.11-9.91%

Key factsBest for Indiana residents or students in the state with good grades.
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 Lengths5, 10 or 15 years

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

To recap our selections...

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

Further reading

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