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7 Best Student Loans for Parents in August 2025

Federal parent loans offer low fixed rates and borrower benefits, but some parents may find better rates with private parent student loans.

Author
By Renee Fleck

Written by

Renee Fleck

Renee Fleck is a student loans editor with over six years of experience. Her work has been featured in Fast Company, Morning Brew, and Sidebar.io, among other online publications. She is fluent in Spanish and French and enjoys traveling to new places.

Written by

Renee Fleck

Renee Fleck is a student loans editor with over six years of experience. Her work has been featured in Fast Company, Morning Brew, and Sidebar.io, among other online publications. She is fluent in Spanish and French and enjoys traveling to new places.

Edited by Lisa Davis

Written by

Lisa Davis

Lisa Davis has been a writer and editor for more than eight years. Her work has appeared on Texas Lifestyle Magazine, RetailMeNot, and House Digest.

Written by

Lisa Davis

Lisa Davis has been a writer and editor for more than eight years. Her work has appeared on Texas Lifestyle Magazine, RetailMeNot, and House Digest.

Reviewed by Richard Richtmyer

Written by

Richard Richtmyer

Richard Richtmyer is a senior editor with over 20 years of finance experience. He's an expert on student loans, capital markets, investing, real estate, technology, business, government, and politics.

Written by

Richard Richtmyer

Richard Richtmyer is a senior editor with over 20 years of finance experience. He's an expert on student loans, capital markets, investing, real estate, technology, business, government, and politics.

Updated August 8, 2025

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

Featured

Paying for college can be a challenge for parents, and if your child needs financial help, you might consider taking out a student loan. Parent student loans can cover education costs when savings and income aren't enough. But the best parent loan option depends on your financial situation.

Federal parent PLUS loans come with flexible repayment plans and forgiveness options. They are a good choice when you need more borrowing flexibility. On the other hand, private parent loans can sometimes offer lower interest rates when you have strong credit and a high income.

Ascent is one of the best private student loan lenders because of its competitive rates and no-cosigner loans. However, there are other things to consider when comparing federal and private loan options.

Find out which option is best for you in this guide to the best parent student loans.

Current student loan interest rates

What is a parent student loan?

A parent loan is one a parent takes out to help pay for their child's college education when the costs exceed the student's financial aid package, which can include tuition, room and board, and other educational expenses. The parent, not the student, is responsible for repaying the loan.

Types of student loans for parents

Parents have two main loan options to help their children pay for college:

Federal parent PLUS loans

The U.S. Department of Education offers parent PLUS loans for biological, adoptive, and in some cases, stepparents of dependent undergraduate students. To qualify for these loans, you can't have an adverse credit history.

Private parent student loans

Banks, credit unions, and online lenders offer student loans for parents to help cover their child's education costs. Eligibility requirements vary by lender, but a good credit score and stable income are usually required.

Editor insight: “I strongly recommend that parents first ensure they've determined the maximum amount their child qualifies for in federal subsidized and unsubsidized loans before considering taking out private student loans on their behalf. These loans usually have lower interest rates and more repayment options, making them the better choice.”

— Richard Richtmyer, Senior Student Loans Editor, Credible

Best college loans for parents

Advertiser Disclosure

We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.

Ascent: Best for No-Cosigner Loans

Ascent

4.9

Credible Rating

To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.

on Credible's website

Min. Credit Score

Does not disclose

Fixed APR

2.89 - 14.93%

Variable APR

4.34 - 15.00%

Loan Amount

$2,001 to $400,000

Term

5, 7, 10, 12, 15, 20

Expert Insights

Ascent stands out for offering private student loans to students without a cosigner and who have limited credit. Its outcomes-based loan uses factors such as academic performance and graduation timeline instead of credit to determine eligibility. Students can also qualify for a cash-back graduation reward and choose from a wide range of repayment plans.

Advertiser Disclosure

We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.

College Ave: Best for Extended Grace Periods

College Ave

4.8

Credible Rating

To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.

on Credible's website

Min. Credit Score

Does not disclose

Fixed APR

2.89 - 17.99%

Variable APR

4.24 - 17.99%

Loan Amount

$1,000 up to 100% of the school-certified cost of attendance

Term

5, 8, 10, 15 (20 for health professionals)

Expert Insights

College Ave offers a wide range of borrower-controlled features that makes it especially compelling for those who want predictability and planning power with their student loans. From 5 to 20-year terms and multiple in-school payment options to profession-specific grace periods, College Ave offers more structure and flexibility than many of its competitors.

Advertiser Disclosure

We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.

Citizens: Best for Multiyear Approval

Citizens

4.3

Credible Rating

To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.

on Credible's website

Min. Credit Score

640

Fixed APR

3.24 - 14.99%

Variable APR

4.99 - 15.47%

Loan Amount

$1,000 to $400,000 (depending on degree)

Term

5, 10, 15

Expert Insights

Citizens could be a great fit for borrowers who already bank with the lender and want to save more on their student loans. Customers can lower their interest rate by 0.25 percentage points with a loyalty discount, and by another 0.25 percentage points for enrolling in autopay. Citizens also offers multiyear approval, making it easier to get additional loans without repeated hard credit checks.

Advertiser Disclosure

We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.

SoFi: Best for Member Perks

SoFi

4.3

Credible Rating

To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.

on Credible's website

Min. Credit Score

Does not disclose

Fixed APR

-

Variable APR

-

Loan Amount

$1,000 to $100,000

Term

5, 7, 10, 15

Expert Insights

SoFi offers borrower-friendly benefits rarely seen among student loan lenders. Perks include cash back for strong grades, a loyalty discount on future loans, and cosigner release after just 12 months. With flexible terms and competitive rates, SoFi is a standout option for students seeking long-term value.

Advertiser Disclosure

We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.

Nelnet Bank: Best for Competitive Rates

nelnet

4.2

Credible Rating

To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.

on Credible's website

Min. Credit Score

Mid to high 600’s FICO

Fixed APR

-

Variable APR

-

Loan Amount

$1,000 to $500,000

Term

5, 10, 15

Expert Insights

Nelnet Bank stands out among private student loan lenders for offering low starting rates and high loan limits across undergraduate, graduate, and health professional programs. You can qualify for a Nelnet Bank student loan with mid-600s credit or apply with a cosigner to improve your chances of approval and secure a better rate.

Advertiser Disclosure

We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.

ELFI: Best for flexible repayment

ELFI

4.2

Credible Rating

To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.

on Credible's website

Min. Credit Score

680

Fixed APR

2.99 - 14.22%

Variable APR

5.00 - 13.97%

Loan Amount

$1,000 up to cost of attendance

Term

5, 7, 10, 15

Expert Insights

ELFI stands out for offering a broad range of repayment terms — 5, 7, 10, or 15 years — so you can tailor your loan to fit your budget and timeline. Whether you want to pay off your loan quickly or stretch payments over time, ELFI gives you the tools to choose. This flexibility makes it a strong option if you're seeking maximum control over your repayment plan.

Advertiser Disclosure

We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.

INvested: Best for Indiana Students

INvested

3.6

Credible Rating

To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.

on Credible's website

Min. Credit Score

670

Fixed APR

4.59 - 8.59%

Variable APR

6.74 - 10.79%

Loan Amount

$1,001 up to 100% of school certified cost of attendance

Term

5, 10, 15

Expert Insights

INvestEd offers unique value for Indiana students, with eligibility limited to state residents or those attending school in the state. This includes competitive interest rates, cosigner release after just 12 on-time payments, and generous forbearance and deferment options. As a nonprofit, INvestEd combines affordability with a strong commitment to local borrowers.

Why you can trust our Credible experts

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. To learn more, read our methodology below.

Methodology

To determine the best student loan lenders for parents, Credible collected more than 1,000 points of data on two dozen companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender 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.

Parent PLUS loans vs. private parent student loans

Federal parent PLUS loans
Private parent loans
Lender
U.S. Department of Education
Banks, credit unions, and online lenders
Interest rate 2025-26
8.94%; fixed rate
Varies by lender; fixed or variable
Loan origination fee
4.228%
Most lenders don’t charge origination fees
Borrowing limit
As much as the full cost of attendance at your child’s school
As much as the full cost of attendance at your child’s school
Credit requirements
Must not have adverse credit
A minimum FICO score of 670 is usually required
Repayment term
10 to 25 years, depending on the plan
Typically 5 to 20 years
Eligible for forgiveness programs?
Yes
No

Parent PLUS loan pros and cons

icon

Pros

  • No credit score requirement
  • Forgiveness options available
  • Can borrow as much as the full cost of attendance
icon

Cons

  • Adverse credit check required
  • Higher interest rate than other federal student loans
  • Forgiveness not available to all parents

Parent PLUS loans help you borrow up to the full cost of attendance minus other financial aid your child receives. They have federal benefits, including the option to defer payments while your child is in school and for six months after graduation. Plus, parents who work in the public sector may qualify for Public Service Loan Forgiveness. Parents with a lower income can be eligible for the Income-Contingent Repayment (ICR) Plan, which sets payments at 20% of their income and forgives the remaining balance after 25 years.

See Also: How To Apply for a Parent PLUS Loan

However, parent PLUS loans have higher interest rates than other federal student loans, which can make them more expensive in the long run. To qualify, you must also pass an adverse credit check, meaning you can't have certain negative marks on your credit report, like a loan default, bankruptcy, foreclosure, repossession, wage garnishment, or tax lien in the last five years.

Parent PLUS loan rates 2025-26

If you're planning to take out a federal direct PLUS loan between now and June 30, 2026, the interest rate is 8.94%. This rate is fixed, meaning it won't change during the life of your loan.

There's also a loan fee applied to all direct PLUS loans. This fee is a percentage of your total loan amount, and it's taken out in portions from each disbursement you receive. For PLUS loans disbursed on or after Oct. 1, 2020, the loan fee is 4.228%.

Private parent student loan pros and cons

icon

Pros

  • Lower rates for parents with excellent credit
  • Can borrow as much as the full cost of attendance
icon

Cons

  • Stricter eligibility requirements than federal loans
  • Less flexible repayment terms
  • No forgiveness options

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 also cover as much as 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 since lenders set their own eligibility criteria, which are based on your credit score, income, and debt-to-income ratio.

How to compare 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 25 years, while private lenders may have terms as short as 5 years.
  • Student loan forgiveness: Federal parent PLUS loans can be eligible for forgiveness under the Income-Contingent Repayment (ICR) Plan after consolidating into a Direct Consolidation Loan. 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

Are there better options than parent PLUS 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.
  • 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.

FAQ

What credit score is needed for a parent student loan?

Open

Can you get a parent PLUS loan with bad credit?

Open

What is the best student loan option for parents?

Open

What is the best way for parents to pay for college?

Open

Can a parent PLUS loan be forgiven?

Open

Can a parent PLUS loan be transferred to the student?

Open

Meet the expert:
Renee Fleck

Renee Fleck is a student loans editor with over six years of experience. Her work has been featured in Fast Company, Morning Brew, and Sidebar.io, among other online publications. She is fluent in Spanish and French and enjoys traveling to new places.