How to Refinance Parent PLUS Loans

If you want to refinance Parent PLUS Loans, you have two main options:

1. Refinance the loans in your own name to get a lower interest rate
2. Refinance the loans into your child’s name, removing your responsibility for the loan

Either way, student loan refinancing can help you — or your child — save money and finally tackle that debt. Here’s everything you need to know from finding the right lender to the pros and cons of refinancing.

In this post:

• Lenders that refinance Parent PLUS Loans
• How to refinance your Parent PLUS Loans
• How to refinance your Parent PLUS Loans in your child’s name
• When to refinance Parent PLUS Loans
• What to consider before refinancing

9 lenders that refinance Parent PLUS Loans

Not all lenders offer Parent PLUS Loan refinancing, but all of Credible’s partner lenders do. However, not all allow the student to refinance into their own name (the parent must), so keep that in mind as you choose the best student loan refinancing company for you.

Lender	Variable rates from (APR)	Fixed rates from (APR)	Check rates from multiple lenders in 2 min
	N/A	4.54%+	Get Rates Advantage review
	2.00%+	3.10%+	Get Rates Brazos review
	2.15%+¹	3.45%+¹	Get Rates Citizens Bank review
	2.49%+2	3.54%+2	Get Rates College Ave review
	4.66%+	4.93%+	Get Rates EdvestinU review
	2.39%+3	3.14%+3	Get Rates ELFI review
	3.33%+	3.60%+	Get Rates MEFA review
	2.42%+	3.48%+	Get Rates Penfed review
	N/A	3.49%+	Get Rates RISLA review
	1.81%+4	3.46%+4	Get Rates SoFi review
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All APRs reflect autopay and loyalty discounts where available | 1Citizens Bank Disclosures | 2College Ave Disclosures | 3 ELFI Disclosures | 4SoFi Disclosures
Citizens Bank Education Refinance Loan Rate Disclosure: Variable rate, based on the one-month London Interbank Offered Rate ("LIBOR") published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of November 1, 2019, the one-month LIBOR rate is 1.80%. Variable interest rates range from 2.15%-8.82% (2.15%-8.82% APR) and will fluctuate over the term of the borrower's loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. Fixed interest rates range from 3.45%-9.02% (3.45%-9.02% APR) based on applicable terms, level of degree earned and presence of a co-signer. Lowest rates shown are for eligible, creditworthy applicants with a graduate level degree, require a 5-year repayment term and include our Loyalty discount and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty and Automatic Payment Discount disclosures. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of their loan.

1. Advantage Education Loan

If you live in Kentucky, you can refinance your parent loans with Advantage Education Loan. And, you can refinance up to $500,000 in loans.

• Fixed rates: 4.54%+
• Variable rates: N/A
• Repayment terms: 10, 15, or 20 years
• Eligibility: Must have a credit score of at least 670 and be a resident of Kentucky
• Fees: No application or origination fees
• Features: Qualify for a 0.25% interest rate reduction for signing up for automatic payments

2. Brazos

Brazos allows parents and students in Texas to refinance their loans with flexible repayment terms.

• Fixed rates: 3.10%+
• Variable rates: 2.00%+
• Repayment terms: 5, 7, 10, 15, or 20 years
• Eligibility: Must have a credit score of at least 720, a minimum income of $60,000, and must be a resident of Texas
• Fees: No application or origination fees
• Features: Brazos allows you to enter into forbearance if you’re facing an economic hardship, are on active duty with the military, or are affected by a natural disaster

3. Citizens Bank

If your child didn’t graduate from college, your refinancing options are limited. Luckily, Citizens Bank offers refinancing to borrowers, even if the degree wasn’t completed.

• Fixed rates: 3.45%+¹
• Variable rates: 2.15%+¹
• Repayment terms: 5, 7, 10, 15, or 20 years
• Eligibility: You must have at least $10,000 in student loans to qualify
• Fees: No application or origination fees
• Features: If you’re facing an economic hardship, you can qualify for economic hardship forbearance and defer payments for two months at a time

4. College Ave

College Ave offers both parent student loan refinancing to residents of any state except for Maine.

• Fixed rates: 3.54%+²
• Variable rates: 2.49%+²
• Repayment terms: 5 to 20 years
• Eligibility: Check with lender
• Fees: No application or origination fees
• Features: College Ave has 15 different loan terms that you can choose from when it comes to repayment

5. EDvestinU

While EDvestinU is run by the New Hampshire Higher Education Loan Corporation, residents of all states are eligible for refinancing loans.

• Fixed rates: 4.93%+
• Variable rates: 4.66%+
• Repayment terms: 10, 15, or 20 years
• Eligibility: To qualify for a loan, you must submit two personal references
• Fees: No application or origination fees
• Features: EDvestinU offers cosigner releases after 36 months of consecutive and on-time payments

6. ELFI

Education Loan Finance offers low-interest loans to help you manage your debt. If you’re comfortable with a shorter repayment term, you can save a lot of money.

• Fixed rates: 3.14%+³
• Variable rates: 2.39%+³
• Repayment terms: 5, 7, or 10 years
• Eligibility: Must have at least $15,000 in parent loans to qualify for refinancing; must have a bachelor’s degree or higher from an approved school
• Fees: No application or origination fees
• Features: ELFI offers both variable and fixed interest rates

7. MEFA

MEFA offers refinancing loans to graduates and parents in all states.

• Fixed rates: 3.60%+
• Variable rates: 3.33%+
• Repayment terms: 7, 10, or 15 years
• Eligibility: Must have a credit score of at least 670 and at least $10,000 in student loans
• Fees: No application or origination fees
• Features: MEFA is willing to work with borrowers who haven’t completed their degree

8. PenFed

If you’re looking to transfer your loans into your child’s name, PenFed may be for you.

• Fixed rates: 3.48%+
• Variable rates: 2.42%+
• Repayment terms: 5, 8, 12, or 15 years
• Eligibility: Must have a credit score of at least 670 and at least $7,500 in student loans
• Fees: No application or origination fees
• Features: PenFed offers both variable and fixed interest rates

9. RISLA

RISLA offers both parent student loan refinancing to residents of any state.

• Fixed rates: 3.49%+
• Variable rates: N/A
• Repayment terms: 5, 8, 12, or 15 years
• Eligibility: Must have a credit score of at least 350 and have at least $7,500 in student loans. There is a minimum income requirement of $40,000
• Fees: No application or origination fees
• Features: RISLA offers income-based repayment options for borrowers who can demonstrate a financial hardship

How to refinance your Parent PLUS Loans

If you’re thinking of refinancing your Parent PLUS Loans, you should know that Credible makes the process quick and easy; there’s no need to get quotes from each individual lender. Just follow these three simple steps:

1. Fill out the form. Click on “Find My Rate,” and you’ll be prompted to enter your email address and you’ll be asked several questions about your refinancing goals, education, and outstanding loans.
2. Compare offers. Once you’ve submitted your information, if eligible, Credible will provide you with a list of prequalified options from several different lenders. You can use Credible’s tools to adjust your repayment options like the term, monthly payment, and choose between a fixed and variable interest rate to find the loan that best suits your needs. You’ll get actual quotes based on your credit score and credit history (without a hard credit check) so you can make an informed decision.
3. Provide your loan information. Once you’ve found a refinancing loan that works for you, you just need to import your current Parent PLUS Loan information and provide a few additional details about yourself. You can get a finalized offer within one to two business days.

That’s it! You can finish the refinancing process in just a few minutes. You can quickly and easily refinance your Parent PLUS Loans and be on your way to enjoying savings.

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How to refinance your Parent PLUS Loans in your child’s name

In some cases, it may make sense to have your child take over responsibility for the loan once their careers are established. Some lenders allow you to transfer the loans into your child’s name through student loan refinancing, eliminating your obligation to repay the loan.

To do so, ask your child to start a refinancing application. They should include information about the Parent PLUS Loans on their application and note that it is under your name. The lender will look at your child’s creditworthiness, including their income and credit score. If approved, the lender will issue your child a loan in their own name.

Not all lenders, however, allow this. Some require the parent to be the borrower who is refinancing which means the student can’t always refinance parent plus loan into their own name.

When to refinance Parent PLUS Loans

Refinancing your Parent PLUS Loans can make a lot of sense, especially in the following three situations:

1. You want to save money overall. If you have good credit and a stable income, you might qualify for a much lower rate when you refinance, helping you save money and pay off your student loan debt faster. Estimate how much you can save with our student loan refinancing calculator.
2. You want to lower your monthly payment. Refinancing can also help you reduce your monthly payment, helping you get more wiggle room in your budget. If you opt for a longer repayment term (or, in some cases, a lower interest rate), you can cut your payment down to something more manageable. If you do lengthen your repayment term though, keep in mind that could cause you to pay more in interest over the life of your loan.
3. You want your child to take over the loan. As you near retirement age, your Parent PLUS Loans may be too much of a burden for you to bear on your own. Luckily, some lenders allow you to refinance Parent PLUS Loans into your child’s name, removing you from any responsibility for the loan.

What to consider before refinancing

While refinancing can be helpful, there are some drawbacks to keep in mind. When you refinance, your federal Parent PLUS Loans will be replaced by a private loan, instead. Private student loans have fewer protections and benefits than federal loans, so you’ll lose out on those perks.

That means you’ll no longer have access to things like income-driven repayment plans or the ability to place your loans into deferment or forbearance in the case of financial hardship, so it’s important to weigh the pros and cons before moving forward with your loans.

But if you’re struggling to keep up with your loan payments or if you want to pay off your debt ahead of schedule, student loan refinancing can be a smart choice. If you’re ready to refinance your Parent PLUS Loans, compare offers from multiple lenders to get the best rate.

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