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.
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 |
---|---|---|---|---|---|
![]() Federal Parent PLUS Loan | Best for Federal loan option for parents | None | 7.54- | N/A | Read review |
College Ave Parent Student Loan Check rate on College Ave's website | Best for Private parent loans for college | Mid- | 3.22- | 1.69- | Check rate on College Ave's website |
![]() Advantage Education Loan Parent Loan | Best for Private parent loans for college | Does not disclose | 3.75- | N/A | Read review |
![]() RISLA Private Student Loan | Best for Private parent loans for college | 680 | 3.64- | N/A | Read review |
![]() ISL Private Student Loan | Best for Private parent loans for college | 670 | 3.19- | 1.24- | Read review |
![]() Brazos Parent Loan Check rate on Brazos' website | Best for Private parent loans for college | 720 | 2.20- | 3.13- | Check rate on Brazos' website |
![]() INvestED Student Loan | Best for Private parent loans for college | 670 | 5.25- | 2.92- | Read review |
![]() SoFi Private Student Loan Check rate on SoFi's website | Best for Private parent loans for college | Mid- | 3.50- | 2.39- | Check rate on SoFi's website |
Nelnet Bank Private Student Loan Check rate on Nelnet Bank's website | Best for Private parent loans for college | 680 | 3.49- | 2.34- | Check rate on Nelnet Bank's website |
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

Min. credit score
NoneFixed APR
7.54-Variable APR
N/AOur pick for
Private parent loans for college
on College Ave's website
College Ave Parent Student Loan
Min. credit score
Mid-Fixed APR
3.22-Variable APR
1.69-on College Ave's website
Advantage Education Loan Parent Loan

Min. credit score
Does not discloseFixed APR
3.75-Variable APR
N/ARISLA Private Student Loan

Min. credit score
680Fixed APR
3.64-Variable APR
N/AISL Private Student Loan

Min. credit score
670Fixed APR
3.19-Variable APR
1.24-
on Brazos' website
Brazos Parent Loan

Min. credit score
720Fixed APR
2.20-Variable APR
3.13-on Brazos' website
INvestED Student Loan

Min. credit score
670Fixed APR
5.25-Variable APR
2.92-
on SoFi's website
SoFi Private Student Loan

Min. credit score
Mid-Fixed APR
3.50-Variable APR
2.39-on SoFi's website
on Nelnet Bank's website
Nelnet Bank Private Student Loan
Min. credit score
680Fixed APR
3.49-Variable APR
2.34-on Nelnet Bank's website
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 August 17, 2022
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
- 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
- Brazos Parent Loan: Best for Private parent loans for college
- INvestED Student Loan: Best for Private parent loans for college
- SoFi Private Student Loan: Best for Private parent loans for college
- Nelnet Bank Private Student Loan: Best for Private parent loans for college