BEST OF
8 Best Parent PLUS Loan Refinance Lenders of March 2021
You can refinance parent PLUS loans with a private lender, but not the federal government, to lower your interest rate. Depending on the lender, you can refinance the loan in your own name or transfer the loan to your child.
Refinancing parent PLUS loans may save you money by lowering your interest rate — rates start at about half of what the government charges for PLUS loans. It can also get you off the hook for the loan completely by transferring the debt to your child.
But refinancing parent PLUS loans isn’t right for you if you have bad credit, struggle to make monthly loan payments or want to access federal benefits including income-driven repayment plans and student loan forgiveness programs.
Not all private lenders refinance parent PLUS loans. Below are our top-rated lenders that offer this option, as well as information to help you decide if refinancing makes sense for you.
Refinancing parent PLUS loans may save you money by lowering your interest rate — rates start at about half of what the government charges for PLUS loans. It can also get you off the hook for the loan completely by transferring the debt to your child.
But refinancing parent PLUS loans isn’t right for you if you have bad credit, struggle to make monthly loan payments or want to access federal benefits including income-driven repayment plans and student loan forgiveness programs.
Not all private lenders refinance parent PLUS loans. Below are our top-rated lenders that offer this option, as well as information to help you decide if refinancing makes sense for you.
Summary of Best Parent PLUS Loan Refinance Lenders of March 2021
Lender | NerdWallet Rating | Fixed APR | Variable APR | Min. Credit Score | Learn More |
---|---|---|---|---|---|
Best for Transferring or refinancing parent PLUS loans | 2.98 - 5.79% | 1.99 - 5.61% | 680 | See my rates on NerdWallet's secure website | |
Best for Transferring or refinancing parent PLUS loans | 2.99 - 6.88% | 2.25 - 6.43% | Does not disclose | See my rates on NerdWallet's secure website | |
Best for Transferring a PLUS loan to the child | 2.99 - 5.15% | 2.16 - 4.46% | 670 | See my rates on NerdWallet's secure website | |
Best for Transferring a PLUS loan to the child | 2.79 - 5.99% | 2.39 - 6.01% | 680 | See my rates on NerdWallet's secure website | |
Best for Transferring a PLUS loan to the child | 2.80 - 6.00% | 1.89 - 5.90% | 700 | Check Rate on Laurel Road's website | |
Best for Refinancing a parent PLUS loan | 2.98 - 5.79% | 1.99 - 5.64% | 650 | See my rates on NerdWallet's secure website | |
Best for Refinancing a parent PLUS loan | 2.99 - 5.98% | 2.00 - 5.51% | 680 | See my rates on NerdWallet's secure website | |
Best for Refinancing a parent PLUS loan | 3.99 - 7.78% | N/A | Does not disclose | See my rates on NerdWallet's secure website |
Our picks for
Transferring or refinancing parent PLUS loans
These are the highest-rated lenders that meet all our criteria for PLUS loan refinancing, including transferring PLUS loans from parents to children.
on NerdWallet's secure website
CommonBond Student Loan Refinance
Fixed APR
Variable APR
Min. Credit Score
on NerdWallet's secure website

on NerdWallet's secure website
SoFi Student Loan Refinance

Fixed APR
Variable APR
Min. Credit Score
on NerdWallet's secure website
Our picks for
Transferring a PLUS loan to the child
Your child becomes legally responsible for repaying a parent loan if it's transferred into his or her name.
on NerdWallet's secure website
PenFed Student Loan Refinance
Fixed APR
Variable APR
Min. Credit Score
on NerdWallet's secure website
on NerdWallet's secure website
Education Loan Finance Student Loan Refinance
Fixed APR
Variable APR
Min. Credit Score
on NerdWallet's secure website
on Laurel Road's website
Laurel Road Student Loan Refinance
Fixed APR
Variable APR
Min. Credit Score
on Laurel Road's website
Our pick for
Refinancing a parent PLUS loan
You may lower your rate by refinancing a parent loan with a private lender, but you'll lose federal loan perks.
on NerdWallet's secure website
Earnest Student Loan Refinance
Fixed APR
Variable APR
Min. Credit Score
on NerdWallet's secure website
Want to compare more options? Here are our other top picks:
How to refinance parent PLUS loans
You have two options to refinance parent PLUS loans: keep the student loan in your name, or transfer it to your child. No matter which you choose, a refinance lender will pay off your existing parent PLUS loan and issue a new private loan with new terms.
1. Refinancing parent PLUS loans in your name
Parent PLUS loan interest rates from recent years range from 6.31% to 7.9%, depending on the year in which you borrowed. You may be able to get a lower rate by refinancing your PLUS loan if you have good credit and enough income to cover your expenses and debts. Here’s how:
Estimate your savings. Use a student loan refinance calculator to see how much you’d save by lowering your parent PLUS loan rate.
Compare refinance lenders. Shopping around is the best way to ensure you get the lowest interest rate you qualify for. The table above lists lenders that offer parent PLUS loan refinancing. Many lenders allow you to pre-qualify without harming your credit. They’ll conduct a soft credit pull to estimate your rate.
Apply. Lenders will do a hard credit check before finalizing your new rate. If you’re approved, the lender will pay off your loans and you’ll make payments to the new lender. The loan will still be your responsibility to repay, not your child’s.
2. Refinancing parent PLUS loans to your child
The government doesn’t give the option to shift parent PLUS loans into a child’s name. Even if your child makes payments on your PLUS loan, you’re still ultimately responsible for the debt. However, a growing number of private lenders allow you to refinance a parent PLUS loan to your child, effectively transferring responsibility for the loan.
The process and requirements for your child to refinance parent PLUS loans in their name are the same as if they were refinancing their own student loans with a private lender. To qualify, they’ll need good credit, a strong history of making loan payments and enough income to afford payments — or a co-signer who meets those qualifications.
Should you refinance parent PLUS loans?
You should refinance parent PLUS loans in your name if you have a credit score at least in the high 600s, are comfortable giving up federal loan benefits and can qualify for a lower rate.
Refinancing doesn't make sense if you need an income-driven repayment plan, will qualify for Public Service Loan Forgiveness or want other federal loan entitlements — like loan discharge if you or the child you borrowed the loan for dies.
You may want to transfer parent PLUS loans to your child via refinancing in the following instances:
He or she can qualify for a lower rate.
You want to switch the repayment responsibility to your son or daughter.
You can't pay parent PLUS loans but your child can.
If you decide to refinance parent PLUS loans, doing so early in the repayment term — even before your parent PLUS loan deferment is over, for example — can save you the most money.
How and when to consolidate parent PLUS loans
Federal student loan consolidation is different from refinancing. Consolidation won’t lower your interest rate, but parent PLUS loan borrowers must jump through this hoop in the following instances:
If you want to switch to the Income-Contingent Repayment plan.
If you want to pursue parent PLUS loan forgiveness.
Income-Contingent Repayment is the only income-driven repayment plan for repaying parent PLUS loans. Under the plan, your monthly payments will be capped at 20% of your discretionary income or the amount of your fixed monthly payments on a 12-year loan term, whichever is lower. Your loan term will be extended to 25 years.
Parent PLUS loans can be canceled by Public Service Loan Forgiveness if you make 120 on-time payments while working for the government, a 501(c)(3) nonprofit or another nonprofit that provides a qualifying public service. To get the most money forgiven, parent PLUS loan borrowers need to make all 120 payments on the Income-Contingent Repayment plan.
You can apply for federal consolidation on the Federal Student Aid website.
Last updated on February 5, 2021
To recap our selections...
NerdWallet's Best Parent PLUS Loan Refinance Lenders of March 2021
- CommonBond Student Loan Refinance: Best for Transferring or refinancing parent PLUS loans
- SoFi Student Loan Refinance: Best for Transferring or refinancing parent PLUS loans
- PenFed Student Loan Refinance: Best for Transferring a PLUS loan to the child
- Education Loan Finance Student Loan Refinance: Best for Transferring a PLUS loan to the child
- Laurel Road Student Loan Refinance: Best for Transferring a PLUS loan to the child
- Earnest Student Loan Refinance: Best for Refinancing a parent PLUS loan
- Nelnet Bank Student Loan Refinance: Best for Refinancing a parent PLUS loan
- Advantage Education Loan Student Loan Refinance: Best for Refinancing a parent PLUS loan
Frequently asked questions
Refinancing or sticking with the standard plan is the quickest option to repay parent loans. If you need lower payments, consider federal consolidation or the Income-Contingent Repayment plan.
Refinancing through a private lender is the only way to transfer parent PLUS loans to your child. He or she will need good credit — FICO score in the high 600s — and a stable income to qualify.
If you can’t pay parent PLUS loans, consider switching repayment plans or postponing payments temporarily. You could also refinance in your child’s name, if he or she can afford the loan.
Parent PLUS loans have repayment options that private loans lack or offer lesser versions of. But private loans may offer better interest rates than federal loans and lower origination fees.