Best Parent Student Loans

Federal parent PLUS loans let parents borrow for their child’s education and access federal repayment protections. But as of July 1, 2026, new parent PLUS loans have an annual limit of $20,000 and a lifetime borrowing cap of $65,000 per dependent. If that doesn’t cover your child’s school costs, some private lenders offer parent student loans. 

Private loans don’t have federal protections, but parent borrowers with strong credit and stable income may qualify for lower interest rates. 

This guide explains how recent changes to parent PLUS loans affect what you can borrow and how you repay, plus how federal and private parent loans compare.

Compare private student loan rates

Best private parent student loan lenders

These lenders offer private student loans for parents:

Parent PLUS loans vs. private parent student loans

Parents have two main loan options to help their children pay for college: federal PLUS loans and private student loans. Each has trade-offs in cost, repayment flexibility, and borrower protections. This table shows how they compare:

Federal parent PLUS loans

The Department of Education offers Direct PLUS Loans for biological, adoptive, and, in some cases, stepparents of dependent undergraduate students enrolled at least half time. To qualify for parent PLUS loans, you can't have an adverse credit history.

How parent PLUS loans changed in 2026

As of July 1, 2026, federal parent PLUS loans have shifted from helping cover the full cost of college to strict borrowing limits. These changes could affect how much you can borrow and how you repay the debt, making it important to compare federal and private options carefully.

Here’s how federal parent PLUS loans have changed as of July 1, 2026:

• New borrowing caps:
  • Annual limit: $20,000 per dependent student
  • Lifetime limit: $65,000 per dependent student
• Fewer repayment options: New parent PLUS loans no longer qualify for income-driven repayment plans and will be limited to the new Tiered Standard Plan.
• Loss of forgiveness eligibility: New borrowers aren’t eligible for income-driven repayment forgiveness or Public Service Loan Forgiveness.
• Current parent borrowers: Parents who took out a PLUS loan before July 1, 2026, may keep the prior borrowing limits for up to 3 years if the student remains enrolled in the same program at the same school. The school’s financial aid office determines eligibility and how much the parent can borrow. 

How do parent PLUS loans work?

Parent PLUS loans allow parents to take out federal student loans for their child to cover remaining college costs after other aid is applied.

Parents apply through the Federal Student Aid (FSA) website using their own FSA ID, and schools set the maximum borrowing amount based on the student’s certified cost of attendance. A credit check is required to ensure the borrower doesn’t have an adverse credit history, such as bankruptcies or defaults. No minimum credit score is required for approval.

The loan funds are sent directly to the school to pay billed charges. Any excess is refunded to the parent unless the parent authorizes the school to release it to the student. Repayment starts once the loan is fully disbursed, but parents can request in-school and post-enrollment deferment.

Private parent student loans

A private parent student loan is an education loan that a parent borrows to help pay their child’s college costs when financial aid and federal student loans aren’t enough. Banks, credit unions, and online lenders issue these loans, not the federal government.

With a private parent loan:

• The parent borrows and is fully responsible for repayment.
• Funds may cover the full cost of attendance, including tuition, fees, housing, and other school-certified expenses.
• Approval is based on credit and income, and strong credit can qualify parents for the best interest rates.
• Loans may have fixed or variable rates, and repayment typically begins immediately, although some lenders offer deferment options.

Parents choose private loans when they can qualify for a lower rate than a parent PLUS loan or want different repayment terms.

Private parent loans are a good option when you have excellent credit because you may qualify for a lower interest rate than with a federal parent PLUS loan. These loans can also cover up to the full cost of attendance at your child's school, minus other financial aid they receive.

However, private parent loans have fewer borrower protections and benefits. Unlike federal loans, private parent loans don't offer income-driven repayment or forgiveness programs. They can also be harder to qualify for because lenders set their own eligibility criteria based on your credit score, income, and debt-to-income ratio.

How to compare private parent student loan options

When researching parent student loans, consider these important factors:

• Interest rates: Check whether the loan has a fixed or variable rate. For private loans, get an estimate of your rate by reviewing the rate range based on your credit, and learn if you can prequalify. Your interest rate will significantly impact the total cost of the loan.
• Fees: Look for application, origination, or other fees that could add to the cost of borrowing. Many private lenders don't charge origination fees, while federal parent PLUS loans do.
• Repayment terms: The repayment term affects your monthly payment and total interest costs. Federal loans offer terms from 10 to 30 years, depending on the plan, while private lenders may have terms as short as 5 years.
• Monthly payments: Use a student loan calculator to estimate the monthly cost for various interest rates, as well as the amount of interest you’d pay for different repayment terms.
• Student loan forgiveness: Federal parent PLUS loans can be eligible for forgiveness under the Income-Contingent Repayment (ICR) Plan provided you consolidated them into a Direct Consolidation Loan before July 2026.. Public Service Loan Forgiveness (PSLF) may also be an option for parents working in the public sector. Private loans don't usually offer forgiveness.
• Borrower benefits: Some lenders offer perks like autopay discounts or temporary payment relief. Compare these benefits to know whether they add value.

Parent student loan credit score

Your credit score plays a key role in determining the interest rate you qualify for on a private parent loan. The chart below shows the average rates for borrowers with different credit scores who used the Credible marketplace to find a lender.

Comparing these rates to the interest rate on federal parent PLUS loans can help you decide whether a private loan is a more affordable option based on your credit profile.

See Also: Student Loan Options for Parents With Bad Credit

Alternatives to parent loans

Before taking out a parent student loan, consider whether it fits your financial goals, especially if it could impact your ability to save for retirement.

Ideally, your child should explore other funding options first, including grants, scholarships, and federal student loans, which offer more repayment flexibility and forgiveness programs.

Here are some alternative funding sources to consider:

• Have your child take out federal student loans: Your child can take out federal student loans by submitting the Free Application for Federal Student Aid (FAFSA). As student borrowers, they'll have access to more repayment plans.
• Be a cosigner: You can cosign a private student loan for your child to help them get approved, but the loan is in their name. In September 2026, student borrowers pursuing a bachelor’s degree who applied through Credible and added a parent cosigner were prequalified with an average APR of 9.24% and an average loan amount of $10,190. 
• Help with loan payments: When you want to pay for your child's college, you can make their student loan payments. That way, the student loans are in your child's name and not your legal responsibility, but you can still offer financial support.
• Choose a more affordable college: Some universities are more costly than others. If attendance costs push you toward parent student loans, consider a more affordable college, like an in-state public university, community college, or online college.

Methodology

To determine the best student loan lenders for parents, Credible collected more than 1,000 lender data points and evaluated them across several categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned each lender a score out of five stars based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.

• Repayment options: 30%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 15%
• Customer support: 10%

While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.

Learn more about our methodology.

Why trust Credible?

The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products.