Close

Featured in:

Parents with strong credit scores can borrow money to cover education costs —so your children can focus on what’s really important.

Parent loans made easy

No origination fees. Multiple repayment options. Total security.

Make paying for college easier

Multiple repayment options

Repay the way that's right for you.

$0 origination fee

Taking out a parent loan will cost you zero, nada, zip.

Cover your costs

Get how much you need for what you need.

No prepayment fees

Penalize you for being on the ball? Never.

Compare top lenders

Yes

Yes (5 - 12 year)

None

$70,000

$1,000 - Cost of Attendance

Yes

N/A

None

$1,000 - Cost of Attendance

No (10 year only)

No (fixed only)

Yes (5 year, 10 year)

None

$12,000

$1,000 - $170,000

6.62% - 10.57% 

fixed rate

4.96% - 9.94% variable rate

5.74%+
fixed rate

5.62%+
variable rate

Offers choice of

fixed and variable rate

Choice of loan term

Fees to apply

Income eligibility

Loan amounts eligible

Interest rates

1

Yes

Yes (5 - 20 year)

None

$60,000

$1,000 - Cost of Attendance

3.50% - 6.74% 

fixed rate

4.42% - 7.18% variable rate

Residency

Only available to Texas residents

All states

All states

All states

5.74% - 8.50% 

fixed rate

5.02% - 8.12% variable rate

Compare repayment options

Immediate payment

Deferred repayment

Loan forgiveness

Income based repayment

Interest only payment

 (in the event of student death or permanent disability)

(in the event of student death or permanent disability)

How does it work?

Compare various student lenders and their offerings to find the one that's right for you.

Compare the lenders

2 Minutes

Apply on the 

lender's website

5 Minutes

Provide a little more information by filling out an application on the lender's website.

Wait for your funds to be disbursed

1 Business Day

That's it, you're done! Once you're approved, the lender will send your funds directly to the school you choose.

Select your lender

*

*Brazos is only available to Texas residents

Parent PLUS loans vs. private parent student loans: what's the difference?

After you’ve maxed out your child’s undergraduate loans, as a parent, you can choose to fund your child’s education by borrowing money in your own name under a parent loan.


Parent Loans for Undergraduate Students (PLUS) allow parents to borrow money for any portion of their child’s tuition that isn’t covered by the school’s financial aid package. Technically, the only limit on the amount you can borrow is the cost of attendance (determined by the school) minus any other financial assistance received, along with any limits set by private lenders. Most universities also allow you to apply for PLUS loans online, making it an easy process.


You can take out all of the PLUS loans you need to cover school attendance costs that exceed the other financial assistance and loans you’ve received. The catch is that you’ll pay a price.


When considering the potential savings of taking out a parent student loan with a private lender, parents should keep in mind that federal PLUS loans carry the highest interest rate of any federal loan — 6.31 percent for loans made during the 2016-2017 school year. Another important factor to remember is the, often steep, 4.3 percent disbursement fee on federal PLUS loans -- a fee that’s taken out of the loan before you even see the money. For loans paid back on the standard 10-year repayment plan, the fee has the same effect as adding about one percentage point to the annual percentage rate (APR).


Unlike PLUS loans for graduate students, federal PLUS loans taken out by parents aren’t eligible for most income-driven repayment plans. However, parents who take out PLUS loans can combine them in a federal Direct Consolidation Loan and then repay the new consolidation loan under an Income Contingent Repayment (ICR) plan.


Parents with dependent children can also turn to private lenders to take out private parent student loans to pay for their child's education. Before you turn to a federal PLUS loan, it’s worth comparing offers from private student lenders, who provide loans to undergraduates, graduate students and parents that are priced competitively with federal PLUS loans.


With private parent student loans, the interest rate depends on the borrower or cosigner’s credit risk, and whether you’d rather have a fixed-rate or variable-rate loan. Pick a variable-rate private student loan, and you’ll start out with a better interest rate than you’d get on a fixed-rate private loan with the same repayment term.


If you’d rather have the certainty of a fixed-rate student loan, most private lenders offer those, too. You’ll pass up the chance to start out making lower monthly payments but if interest rates go up, your monthly payments will remain unchanged. Also keep in mind that private student loans don’t offer some of the borrower benefits packaged with federal loans, like access to income-driven repayment (IDR) plans and the potential for loan forgiveness after 10, 20 or 25 years of payments.


IDR plans can help graduates with modest earnings pay off big loan balances. But they aren’t the best solution for everyone — stretching out your payments over a longer period will in many cases increase the total amount repaid. If you do qualify for loan forgiveness, you may face a large tax bill.


Many private lenders are adopting borrower-friendly features like grace periods and optional deferment. Just keep in mind that interest will accrue during these periods, just as it does on unsubsidized federal direct loans and PLUS loans.


Frequently Asked Questions

1. What is a parent student loan and how can it help me?

Parent loans allow responsible adults, typically parents, to help students cover education-related expenses. Federal loans for students are available, but usually set limits on how much you can borrow. After you’ve maxed out your child’s undergraduate loans, as a parent, you can choose to fund your child’s education by borrowing money in your own name under a parent loan. When parents take out student loans in their own name, they can claim the student loan interest deduction -- a deduction that was worth up to $625 on 2016 tax returns.


2. What's the difference between federal and private parent student loans?

Federal PLUS loans are one-size-fits all — everybody taking out a loan at the same time gets the same rate, with a standard repayment term of 10 years. Unlike private lenders, the government does not evaluate a borrower’s ability to repay PLUS loans. But borrowers who have an adverse credit history (such as bills that are more than 90 days overdue, or a bankruptcy or foreclosure) may need a cosigner to be approved, or demonstrate to U.S. Department of Education that there are extenuating circumstances. 


Private lenders offer many different options to compete for your business.


When you take out a federal student loan, the interest rate is fixed for the life of the loan, but private student loans come in more flavors than government loans. With private student loans, the interest rate can vary depending on the credit risk, and whether you’d rather have a fixed-rate or variable-rate loan. Pick a variable-rate private student loan, and you’ll start out with a better interest rate than you’d get on a fixed-rate private loan with the same repayment term.


If you’d rather have the certainty of a fixed-rate student loan, most private lenders offer those, too. You’ll pass up the chance to start out making lower monthly payments but if interest rates go up, your monthly payments will remain unchanged.


3. What can I use a parent student loan for?

Parent loans can help you pay for your child's college tuition and fees, as well as other indirect costs such as housing, books, and other personal expenses.


4. Is there a credit check? Is there a minimum credit score to apply?

Borrowers applying for private parent student loans must typically pass a credit check and be in good credit standing, as well as meet other eligibility requirements before they can be approved for a loan.


5. When should I apply?

Lenders will typically need to verify your credit history, proof of income and other eligibility requirements before they can approve your loan request. Generally it's best to give yourself plenty of time and apply 3-4 weeks before you need the loan.


6. Can I refinance my parent student loans down the line?

Absolutely. Creditworthy borrowers can refinance federal PLUS loans and parent student loans from private lenders without being subjected to prepayment penalties. Many lenders do not charge origination fees for refinancing.


7. How is the money disbursed?

Depending on your lender, your funds will either be disbursed to you or be sent directly to your school. CollegeAve, for example, will send funds for tuition and fees directly to the school you choose and send loan funds for other expenses to you.


8. Do I need to submit a FAFSA form to apply for this loan?

No. In order to apply for a parent loan from a private lender, you will simply need to fill out the application on the lender's website.


9. What information or documents do I need to apply?

Generally speaking, to apply for a loan from a private lender, you will need the following information:


  • Personal information: name, address, phone number, email address, date of birth, SSN

  • Employment information and recent pay stubs or other proof of income

  • Education information: name of the school, cost of attendance, details about any other financial aid, graduation date

  • Loan information: the loan amount you're requesting and the loan period


10. Can the loans be transferred to the student?

Typically, you cannot. However, if you choose to refinance your loans, you may then be able to add on the student as a co-signer, as long as they have graduated. Check with your lender to discuss their policy on transferring your loan to the student.

Our Client Success Team is always here to help

Have any questions? We are only a call, email, or a chat away.