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The cost of higher education continues to rise, and many students need help meeting education expenses. If your student’s scholarship and grants aren’t enough to cover their full college costs, you may consider student loans.
Students should always turn to federal student loans first — they offer stable interest rates and unique benefits. But federal student loan amounts have limits, and your child may still face a funding shortfall. At that point, you may consider taking out a loan in your own name to help them out.
Here’s what you should know about parent student loans:
- What are parent student loans?
- What is a federal Parent PLUS Loan?
- 2 of the best parent student loans
- 7 of the best parent cosigner student loans
- Other private student loans for parents to consider
- Parent PLUS Loans vs. private parent loans vs. cosigned loans
- Should a parent or a student take out a private student loan?
- How to qualify for a private student loan
- How to apply for a private student loan to cover school and living expenses
- How to get the best parent student loan rate
- Parent student loan FAQs
What are parent student loans?
A parent student loan is a loan for which a parent is the primary borrower, and the borrower uses the funds to help pay for their child’s education. You can choose from two types of parent student loans:
- Federal Parent PLUS Loans
- Private student loans
Cosigning a loan for your child may also be an option, especially if you have good credit. With a cosigned loan, your child is the primary borrower. You only become responsible for making payments if your child fails to do so.
What is a federal Parent PLUS Loan?
A Parent PLUS Loan is a type of federal student loan available to parents who want to help pay for their child’s education expenses. PLUS Loans typically have higher interest rates in comparison to other federal loans.
Unlike other federal loans that come with lower student loan limits, you might be able to borrow up to your child’s cost of attendance (minus any other financial aid they’ve received) with a PLUS Loan.
Here are several important points to note if you’re considering a Parent PLUS Loan:
| Interest rates (2022-23) | 7.54%* |
| Loan amount | Cost of attendance minus any other financial aid received |
| Origination fee | 4.228% (for loans disbursed on or after Oct. 1, 2022, and before Oct. 1, 2023) |
| Loan terms |
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| Credit check required? | Yes |
| Deferment period | Until the dependent is no longer enrolled at least half-time |
| Grace period | 6 months |
| Federal student loan rates for the 2022-23 academic school year. | |
Also see: What to Do if Your Parent Plus Loan is Denied
2 of the best parent student loans
These two Credible partner lenders offer the best private student loans for parents:
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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| Eligibility | All states | All states |
| Origination fee | None | Up to 4.228% on Parent PLUS Loan |
| Loan amounts | $1,000 to $350,000 (depending on degree) | $1,000 up to 100% of the school-certified cost of attendance |
| Loan terms (years) | 5, 10, 15 | 5, 8, 10, 15, 20 |
your credit score. 100% free! |
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Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available | 10Ascent Disclosures | 1Citizens Disclosures | 2,3College Ave Disclosures | 7EDvestinU Disclosures | 8INvestEd Disclosures | 9Sallie Mae Disclosures |
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7 of the best parent cosigner student loans
Parent borrowers have a few options to help pay for their child’s college education, including both federal and private student loans. You might also be able to get a private student loan by cosigning a loan taken out by your child.
However, depending on your credit, you might get a lower interest rate on a private student loan compared to a federal Parent PLUS Loan. Just keep in mind that a private loan won’t offer the benefits of a PLUS Loan.
If you decide to take out a private student loan, it’s important to consider as many lenders as you can to find a loan that suits the needs of both you and your child.
Here are Credible’s partner lenders that offer private student loans to parents — either directly or through cosigning:
| Lender | Fixed Rates From (APR) | Variable Rates From (APR) | Loan terms (years) | Cosigner release? | Offers parent student loans? |
|---|---|---|---|---|---|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 4.62%+10 | 5.74%+10 | 5, 7, 10, 12, 15, 20 (depending on loan type) | After 12 months | No, but parents can cosign |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 4.99%+1 | 4.89%+ | 5, 10, 15 | After 36 months | Yes (parents can also cosign) |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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4.49%+2,3
| 4.49%+2,3 | 5, 8, 10, 15 | After 24 months | Yes (parents can also cosign) |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 7.52%+7 | 6.89%+7 | 7, 10, 15 | After 36 months | No, but parents can cosign |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 4.37%+8 | 5.86%+8 | 5, 10, 15 | After 48 months | Yes (parents can also cosign) |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 4.89%+ | N/A | 10, 15 | After 48 months | No, but parents can cosign |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 4.509 - 14.83%9 | 5.37%9 - 15.709 | 10 to 209 | After graduation, 12 consecutive on-time principal and interest payments, and meeting certain credit requirements | No, but parents can cosign |
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Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available | 10Ascent Disclosures | 1Citizens Disclosures | 2,3College Ave Disclosures | 7EDvestinU Disclosures | 8INvestEd Disclosures | 9Sallie Mae Disclosures |
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Ascent
While parents can’t borrow directly through Ascent, they can cosign a loan taken out by an undergraduate student. Ascent cosigned loans are available from $2,001 to $400,000 (aggregate limit).
Potential discounts include a 0.25% autopay discount and a 1% cashback graduation reward.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Lowest fixed rate available from this lender
Lowest variable rate available from this lender
Total amount you can borrow from this lender
How many years you have to repay the loan
Ready to find a student loan?
Compare rates from top private lenders to find the right student loan for you.
Pros
- 1% cashback graduation reward
- 0.25% autopay discount
- Cosigner release offered after 12 months of on-time consecutive payments
Cons
- Doesn’t offer student loans directly to parents (only cosigned loans)
- Lower autopay discount compared to non-cosigned loans
- 15-year term not available for fixed-rate loans
Citizens
Citizens offers parent student loans from $1,000 to $350,000 with five- or 10-year terms. You also have the option to cosign a student loan for your child.
If you already have an account with Citizens, you might qualify for a 0.25% loyalty discount — and you could get another 0.25% off your rate by signing up for automatic payments.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Lowest fixed rate available from this lender
Lowest variable rate available from this lender
Total amount you can borrow from this lender
How many years you have to repay the loan
Ready to find a student loan?
Compare rates from top private lenders to find the right student loan for you.
Pros
- 0.25% autopay discount
- 0.25% loyalty discount
- No application, origination, or disbursement fees
Cons
- 15-year term not available for parent loans
- Might be hard to qualify if you don’t have good credit
- Doesn’t disclose minimum income requirements
College Ave
College Ave offers student loans from $1,000 up to your child’s school-certified cost of attendance (minus other financial aid your child has received). Parents can also choose to have $2,500 of the loan sent to them so they can control spending for additional expenses like textbooks or electronics.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Lowest fixed rate available from this lender
Lowest variable rate available from this lender
Total amount you can borrow from this lender
How many years you have to repay the loan
Ready to find a student loan?
Compare rates from top private lenders to find the right student loan for you.
Pros
- Can borrow up to 100% of your child’s school-certified cost of attendance
- Can have up to $2,500 of parent loan sent directly to you
- 0.25% autopay discount
Cons
- Doesn’t disclose minimum income or credit requirements
- If you cosign your child’s loan, you can’t apply for cosigner release until more than half of the repayment period has elapsed
- Might not qualify if you’ve previously filed for bankruptcy
EDvestinU
While EDvestinU doesn’t offer parent loans, it does allow parents to cosign. EDvestinU loans are available starting at $1,000 up to 100% of your child’s cost of attendance ($200,000 aggregate limit).
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Lowest fixed rate available from this lender
Lowest variable rate available from this lender
Total amount you can borrow from this lender
How many years you have to repay the loan
Ready to find a student loan?
Compare rates from top private lenders to find the right student loan for you.
Pros
- Can borrow up to school’s cost of attendance
- 0.50% autopay discount
- New Hampshire students can qualify for the 603 EDvantage Program 0.25% discount
Cons
- Doesn’t offer student loans directly to parents (only cosigned loans)
- Long cosigner release period (36 months)
- Might be hard to qualify if you don’t have very good credit
INvestEd
If you live in Indiana, then you might qualify for a parent student loan from INvestEd. You also have the option to cosign on a student loan from INvestEd if your child lives or attends school in Indiana.
INvestEd loans range from $1,001 up to 100% of your child’s cost of attendance (minus any other aid they’ve received).
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Lowest fixed rate available from this lender
Lowest variable rate available from this lender
Total amount you can borrow from this lender
How many years you have to repay the loan
Ready to find a student loan?
Compare rates from top private lenders to find the right student loan for you.
Pros
- 0.25% autopay discount
- Can get a 2% principal discount if child graduates within six years (not available on parent loans)
- Up to 24 months of forbearance during the life of the loan (one to three months duration per forbearance)
Cons
- Must be an Indiana resident (or have a child attending school in Indiana)
- Can’t have debt-to-income ratio higher than 30%
- Long cosigner release period (48 months)
MEFA
With MEFA, parents can cosign on student loans. MEFA loans range from $1,500 for public schools or $2,000 for private schools up to 100% of your child’s cost of attendance (minus any other financial aid they’ve received).
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Lowest fixed rate available from this lender
Lowest variable rate available from this lender
Total amount you can borrow from this lender
How many years you have to repay the loan
Ready to find a student loan?
Compare rates from top private lenders to find the right student loan for you.
Pros
- Can borrow up to 100% of school’s cost of attendance (minus any other financial aid your child has received)
- Can defer payments for up to five years
- No application, origination, or disbursement fees
Cons
- Doesn’t offer student loans directly to parents (only cosigned loans)
- No discounts offered
- Long cosigner release period (48 months)
Sallie Mae
Sallie Mae parent student loans range from $1,000 up to 100% of school-certified cost of attendance. If you’d rather cosign a Sallie Mae loan for your child, cosigner release is offered after just 12 months of consecutive on-time payments.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Lowest fixed rate available from this lender
Lowest variable rate available from this lender
Total amount you can borrow from this lender
How many years you have to repay the loan
Ready to find a student loan?
Compare rates from top private lenders to find the right student loan for you.
Pros
- Cosigner release offered after just 12 months
- 0.25% autopay discount
- Four free months of Chegg Study
Cons
- Doesn’t disclose minimum income or credit requirements
- Students attending school in Maine don’t qualify for free Chegg Study
- Doesn’t provide personalized rates without a hard credit check
Learn More: Best Private Student Loans
Other private student loans for parents to consider
Other private lenders also offer parent student loans or allow parents to cosign on student loans.
Here are more private student loan companies that offer parent student loans. Keep in mind that these lenders aren’t offered through Credible, so you won’t be able to easily compare your rates with them on the Credible platform like you can our partner lenders.
| Lender | Loan terms (years) | Loan Amounts | Cosigner? | Offers parent student loans? |
|---|---|---|---|---|
 | 5, 7, 10, 15 (15-year term not offered for parent loans) | $10,000 to $250,000 | No | Yes (parents can also cosign) |
 | 10, 15 | $1,500 to $45,000 | Yes, after 24 months | Yes (parents can also cosign) |
 | 5, 10, 15 | $5,000 to 100% of school-certified costs | Yes, after 24 months | Yes (parents can also cosign) |
Methodology
To find the “best companies,” Credible looked at loan and lender data points from 10 categories to give you a well-rounded perspective on each of our partner lenders. Here’s what we considered:
- Interest rates
- Repayment terms
- Repayment options
- Fees
- Discounts
- Customer service availability
- Eligibility criteria
- Cosigner release options
- Whether the minimum credit score is available publicly
- Whether consumers could request rates with a soft credit check
Our hope is that this will be a win-win situation for you and us — we only want to get paid if you find a loan that works for you, not by selling your data. This means Credible will only get paid by the lender if you finish the loan process and a loan is disbursed. Additionally, Credible charges you no fees of any kind to compare your loan options.
Also see: 7 Student Loans with Cosigner Release
Parent PLUS Loans vs. private parent loans vs. cosigned loans
Here are a few factors to keep in mind while comparing Parent PLUS Loans, private parent loans, and cosigned loans.
| Parent PLUS Loans | Private student loans | Cosigned loans | |
|---|---|---|---|
| Fees | Origination fee: 4.228% | Varies by lender | Varies by lender |
| Terms | 10 years (up to 25 or 30 years with other repayment plans or through consolidation) | 5 to 15 years (with Credible partner lenders) | 5 to 20 years (with Credible partner lenders) |
| Who is responsible for monthly payment? | Parent | Parent | Student (if student can’t make payments, cosigner is responsible) |
| Cosigner release offered? | No | Depends on the lender | Depends on the lender |
You can apply for a Parent PLUS Loan on the StudentAid.gov website. Before you apply, make sure your child has already completed the Free Application for Federal Student Aid (FAFSA). For private parent loans, you can apply online with the lender you choose.
Learn More: When You Should Apply for a Student Loan
Should a parent or a student take out a private student loan?
This depends on your individual circumstances. In some cases, it could be a good idea for the student to apply for a loan with you as a cosigner — though keep in mind that you’re equally responsible for the loan if they can’t make payments.
In other situations, taking out a parent loan yourself might be the better choice. In this scenario, you could ask your child to help make payments — but if they can’t afford to do so or stop for any reason, you’ll have no recourse.
Here are several reasons why a parent student loan could be the better option:
- The student isn’t responsible for payments. If the parent plans on paying the entire loan balance, a parent loan could be more convenient. You can work directly with the lender to choose a repayment plan that suits your needs.
- The student avoids debt. Taking out a parent loan could help prevent the student from going into debt as well as help them focus on other goals.
- Parents might qualify for better rates. Parents are generally able to meet credit and income requirements more easily than students. This could help you qualify for a good interest rate.
And here are a few advantages for a student to take out a loan with a parent cosigner:
- The student might qualify for more discounts. Some lenders provide exclusive rate discounts to students. For example, Ascent offers a 1% cash back graduation reward.
- The student is responsible for loan payments. Because the student is responsible for making monthly loan payments, parents can focus on saving for retirement and other financial priorities. However, remember that if your child can’t keep up with payments, the cosigner will be on the hook.
- More repayment options available to student borrowers. Student borrowers sometimes have more repayment options, such as longer repayment terms or deferred payments while in school.
Check Out: Private Student Loans and COVID-19: What You Need to Know
How to qualify for a private student loan
Eligibility criteria for private student loans vary by lender. But there are a few common requirements you’ll likely come across, including:
- Good credit: You’ll typically need good to excellent credit to qualify for a private student loan. Having good credit could also help you secure a better interest rate. While some lenders offer student loans for bad credit, these typically come with higher interest rates compared to good credit loans.
- Verifiable income: Lenders want to see that you’ll be able to repay the loan. Some lenders have specific minimum income requirements while others don’t — but in either case, the lender will generally ask to see proof of income.
- Low debt-to-income ratio: Your debt-to-income (DTI) ratio is the amount of debt you owe compared to your income. You’ll generally need a DTI ratio lower than 50% — though some lenders might require lower percentages.
Learn More: Fixed- or Variable-Rate Student Loan: Which Is Right for You?
How to apply for a private student loan to cover school and living expenses
If you’re ready to apply for a private student loan, follow these four steps:
- Complete the FAFSA. Your first step should be filling out the Free Application for Federal Student Aid (FAFSA). The school will use the student’s FAFSA results to determine what federal student loans and other federal financial aid they qualify for.
- Apply for grants and scholarships. Unlike student loans, grants and scholarships don’t have to be repaid — which essentially makes them free money for school. There’s no limit on how many college grants and scholarships you can get, so it’s a good idea for students to apply for as many as they possibly can.
- Accept federal student loans. If you need to borrow for school, it’s usually a good idea to start with federal student loans so you’ll have access to federal benefits and protections. There are several types of federal student loans that students might qualify for. Additionally, parents can apply for Parent PLUS Loans to fund their child’s education.
- Use private student loans to fill any gaps. After exhausting grant, scholarship, and federal student loan options, private student loans could fill any financial gaps left over. For example, private student loans could help cover education costs like tuition, textbooks, or living expenses.
If you decide to take out a private student loan, be sure to consider as many lenders as possible to find the right loan for you — whether it’s a parent loan or a cosigned loan. This is easy with Credible. You can compare your prequalified rates from multiple lenders in two minutes.
See Your Rates
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How to get the best parent student loan rate
Congress sets federal student loan rates each year. Here are the rates you can expect for the 2022-23 academic year:
- Parent PLUS Loans: 7.54%
On the other hand, individual lenders set private student loan rates based on market conditions. Also keep in mind that other factors will affect the actual rates you’re offered, such as your credit score and the repayment term you choose.
Here are the rates you can expect on private student loans from Credible’s partner lenders:
- Fixed rates starting at: 3.15% APR
- Variable rates starting at: 1.73% APR
A couple strategies might help you qualify for a better rate on a private loan, including:
- Apply with a cosigner. If you have poor or fair credit, applying with a cosigner with good credit could improve your chances of getting approved. Even if you don’t need a cosigner to qualify, having one might get you a lower rate than you’d get on your own.
- Compare lenders. Shopping around and comparing your options from as many lenders as possible can help you find a loan with the most optimal rate for your needs.
Parent student loan FAQs
Here are answers to some frequently asked questions about student loans for parents:
Can you claim a Parent Plus Loan on taxes?
Parent Plus Loan interest payments are tax-deductible if you’re making payments for a dependent. The maximum deduction is $2,500 per year for all qualifying federal and private student loans in the parent’s name.
Keep in mind that loans taken out in the student’s name — such as Direct Subsidized or Unsubsidized Loans — aren’t deductible for the parent.
Check Out: How to Get a Student Loan With No Credit Check
Does cosigning a student loan hurt my credit?
When you apply for a loan as the primary borrower or as a cosigner, the lender will perform a hard credit check to determine your ability to repay the loan. This might lower your credit score by a few points — but this impact is usually temporary, and your score will likely bounce back within a few months.
Additionally, making on-time loan payments and paying off the loan in the future could help boost your score over time.
Also see: 2 Student Loan Options For Parents With Bad Credit
Can a student take over a Parent PLUS Loan?
No, the parent borrower is legally responsible for making payments and can’t transfer a Parent PLUS Loan into the student’s name.
The only way for a student to take over a Parent PLUS Loan is through private refinancing, though not all lenders allow this. Also keep in mind that if you refinance a PLUS Loan, you’ll lose access to federal benefits and protections.
Are both parents responsible for Parent PLUS loans?
No, only the parent borrower is responsible for making Parent PLUS Loan payments. But if the primary borrower had an adverse credit history and the other parent applied as an endorser, then that other parent could be responsible.
Keep Reading: What to Do If You’re Denied a Student Loan With a Cosigner
Do I have to be the student’s parent to take out a parent student loan for them?
This depends on the type of loan you get.
- For Parent PLUS Loans, the borrower must be the biological or adoptive parent (or stepparent in some cases) of the student to be eligible. If you aren’t the student’s biological parent and haven’t formally adopted them, you won’t be able to take out a PLUS Loan.
- For private parent student loans, the parent and guardian eligibility rules will depend on the individual lender. If you’re considering a private loan, be sure to check with the lender to see what its specific requirements are.
If you aren’t eligible for a parent loan, another option might be cosigning a private student loan taken out by the student. This could help them qualify more easily for a loan — especially if they have poor or no credit — and might get them a lower interest rate than they’d get on their own.
Just keep in mind that as a cosigner, you’ll share responsibility for the loan — meaning you’ll be liable if the student doesn’t make their payments.
Learn More: The Right Cosigner Can Save Students Thousands on Their Student Loans
What is the maximum amount parents can borrow for their student?
How much you’ll be able to borrow can vary depending on the kind of loan you choose.
- With a federal Parent PLUS Loan, you can borrow up to the cost of attendance of your child’s school (minus any other financial aid they’ve received).
- With a private student loan, loan maximums will depend on the lender. Some lenders allow you to borrow up to the cost of attendance of your child’s school, while others have lower loan maximums.
Learn More: Student Loan Limits: How Much in Student Loans You Can Get
Josh Patoka contributed to the reporting for this article.
