BEST OF

4 Best Parent PLUS Loan Refinance Lenders of January 2022

You can refinance parent PLUS loans with a private lender 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.

Cecilia Clark
Aug 27, 2021

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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.

Best Parent PLUS Loan Refinance Lenders

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.

SoFi Student Loan Refinance
Check rate

on SoFi's website

SoFi Student Loan Refinance

5.0

NerdWallet rating 
SoFi Student Loan Refinance

Min. Credit Score

650

Fixed APR

2.49-6.94%

Variable APR

1.74-6.59%
Check rate

on SoFi's website

Variable APR

1.74-6.59%

Key facts

Best for borrowers who want plenty of benefits with their refinanced student loan.

Pros

  • You can refinance parent PLUS loans in your name.

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

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

Cons

  • No co-signer release available.

  • Loan size minimum is higher than most lenders.

Qualifications

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

  • Loan amounts: $5,000, up to your total outstanding loan balance.

  • Must have a degree: Yes, an associate degree or higher.

Available Term Lengths

5, 7, 10, 15 or 20 years

Disclaimer

Fixed rates range from 2.49% APR to 6.94% APR with a 0.25% autopay discount. Variable rates from 1.74% APR to 6.59% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 8.95% APR; 15- and 20-year terms are capped at 9.95% APR. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. 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. 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. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi.

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Laurel Road Student Loan Refinance
Check rate

on Laurel Road's website

Laurel Road Student Loan Refinance

5.0

NerdWallet rating 
Laurel Road Student Loan Refinance

Min. Credit Score

660

Fixed APR

2.50-6.00%

Variable APR

1.89-5.90%
Check rate

on Laurel Road's website

Variable APR

1.89-5.90%

Key facts

Best for borrowers who want to refinance during their medical or dental residency.

Pros

  • You can refinance parent PLUS loans in your name.

  • Refinancing available for medical and dental residents.

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

Cons

  • Payment postponement isn’t available if borrowers return to school.

Qualifications

  • Typical credit score of approved borrowers or co-signers: Did not disclose.

  • Loan amounts: $5,000 up to your total outstanding loan balance.

  • Must have a degree: At least an associate degree for select professions. Borrowers in their last year of undergrad can refinance. For parent PLUS loans, the child does not need to have graduated to refinance.

Available Term Lengths

5, 7, 10, 15 or 20 years

Disclaimer

All credit products are subject to credit approval. APRs shown include a 0.25% interest rate discount for AutoPay. If the borrower chooses to make monthly payments automatically by electronic fund transfer (EFT) from a bank account, the interest rate will decrease by 0.25% and will increase back if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the borrower’s bank account. The 0.25% AutoPay/EFT Discount will not reduce the monthly payment; instead, the discount is applied to the principal to help pay the loan down faster. Variable APRs are subject to increase after consummation. The current index for variable rate loans is derived from the 30-day Average Secured Overnight Financing Rate (“SOFR”) and changes in the SOFR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%. There is no limit on the amount your interest rate can increase at one time. The Index is currently published by the Federal Reserve Bank of New York (“New York Fed”). View payment examples here. KeyBank National Association reserves the right to modify or discontinue products and benefits at any time without notice.

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Education Loan Finance Student Loan Refinance
Check rate

on Education Loan Finance's website

Education Loan Finance Student Loan Refinance

5.0

NerdWallet rating 
Education Loan Finance Student Loan Refinance

Min. Credit Score

680

Fixed APR

2.47-5.99%

Variable APR

1.86-6.01%
Check rate

on Education Loan Finance's website

Variable APR

1.86-6.01%

Key facts

Best for borrowers who value good customer service.

Pros

  • You are assigned a student loan advisor.

  • You can refinance parent PLUS loans in your name.

Cons

  • Payment postponement isn’t available for borrowers who return to school.

  • The minimum amount to refinance is more than many lenders require.

  • No co-signer release available.

Qualifications

  • Typical credit score of approved borrowers or co-signers: 774.

  • Loan amounts: $15,000 up to your total outstanding loan balance.

  • Must have a degree: Yes, at least a bachelor’s degree.

Available Term Lengths

5, 7, 10, 15 or 20 years

Disclaimer

Subject to credit approval. Terms and conditions apply. https://www.elfi.com/terms/

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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:

  1. Estimate your savings. Use a student loan refinance calculator to see how much you’d save by lowering your parent PLUS loan rate.

  2. 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.

  3. 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.

» MORE: How to pay off parent PLUS loans faster

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:

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 August 27, 2021

To recap our selections...

NerdWallet's Best Parent PLUS Loan Refinance Lenders of January 2022

Frequently asked questions