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- Should you refinance your Parent PLUS Loan in your child\u2019s name?<\/a><\/li>\n
- Lenders that refinance Parent PLUS Loans<\/a><\/li>\n
- How to refinance Parent PLUS loans in the student\u2019s name<\/a><\/li>\n
- How to refinance in the parent\u2019s name<\/a><\/li>\n
- What if my child isn\u2019t ready to qualify for a student loan refinance?<\/a><\/li>\n
- Frequently asked questions about Parent PLUS Loans<\/a><\/li>\n<\/ul>\n
<\/a><\/p>\n
Should you refinance your Parent PLUS Loan in your child\u2019s name?<\/h2>\n
Refinancing a Parent PLUS Loan in a student\u2019s name could be a good choice in some cases, but it isn\u2019t right for everyone.<\/p>\n
If you\u2019re thinking about refinancing your student loan<\/a>, here are a few pros and cons to keep in mind:<\/p>\n
Pros<\/h3>\n
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- No longer responsible for the loan: <\/b>Because the loan will be in your child\u2019s name, you\u2019ll no longer be responsible for making payments. This could help lessen the strain of payments on your budget.<\/li>\n
- Could help student build their credit: <\/b>Your child\u2019s credit could benefit from having the loan in their name \u2014 for example, by making on-time payments.<\/li>\n
- Might get a better interest rate:<\/b> PLUS Loans come with higher interest rates compared to other federal loans. Depending on their credit, your child might qualify for a lower interest rate through refinancing \u2014 which could save them money on interest and even help them pay off the student loan<\/a> faster.<\/li>\n<\/ul>\n
Learn More: <\/i><\/b>When to Refinance Student Loans<\/i><\/b><\/a><\/p>\n
Cons<\/h3>\n
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- Loss of federal benefits: <\/b>While you can refinance both federal and private loans, refinancing a federal student loan \u2014 such as a Parent PLUS Loan \u2014 will cost you access to federal benefits and protections. For example, you\u2019ll no longer be eligible for income-driven repayment plans or student loan forgiveness programs.<\/li>\n
- Might be hard for student to qualify: <\/b>Borrowers typically need good to excellent credit to qualify for refinancing \u2014 a good credit score is usually considered to be 700 or higher. If your child has poor or no credit, it could be difficult for them to get approved.<\/li>\n
- Lack of repayment options:<\/b> Private refinanced loans don\u2019t offer the variety of repayment options that federal student loans do \u2014 such as income-driven or extended repayment plans.<\/li>\n<\/ul>\n
Check Out: <\/i><\/b>Private Student Loan Forgiveness Alternatives<\/i><\/b><\/a><\/p>\n
- Might be hard for student to qualify: <\/b>Borrowers typically need good to excellent credit to qualify for refinancing \u2014 a good credit score is usually considered to be 700 or higher. If your child has poor or no credit, it could be difficult for them to get approved.<\/li>\n
- Could help student build their credit: <\/b>Your child\u2019s credit could benefit from having the loan in their name \u2014 for example, by making on-time payments.<\/li>\n
- Lenders that refinance Parent PLUS Loans<\/a><\/li>\n
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