How to Refinance Parent Student Loans to Transfer or Lower Your Payments and the Best Lenders to Explore

Refinancing student loans for parents can lower your interest rate, reduce monthly payments, or transfer the debt to your child. Both private and Parent PLUS loans can be refinanced, but switching federal loans to a private lender means losing access to benefits like forbearance and income-driven repayment plans. If you want to keep federal protections, consolidation may be a better option.

Below, we’ll explain how to refinance parent loans in your name or your child’s, plus highlight the best lenders for refinancing and alternatives if refinancing isn’t the right move for you.

Table of Contents

1. Can parents refinance student loans?
2. How to refinance parent student loans in the parent’s name
3. How to refinance parent student loans into the child’s name
4. Best lenders to refinance parent student loans
5. Alternatives to refinancing for Parent PLUS loans

Can parents refinance student loans?

Yes, it’s possible to refinance parent loans. Your options depend on whose name you want to refinance in and what type of parent student loans you have. 

You can refinance private parent and Federal Parent PLUS loans. However, before you refinance a Parent PLUS loan, understand switching to a new private loan means you’ll no longer have access to federal benefits such as federal forbearance and student loan forgiveness programs.

Some private lenders even allow you to transfer a parent loan into your child’s name through refinancing. Refinancing is your only option to transfer a Parent PLUS loan to your child because the federal government doesn’t allow you to shift payment responsibility.

Below is a table highlighting the main differences between private and federal Parent PLUS loans:

	Private parent loans	Federal Parent PLUS loans
Refinance?	✅	✅
Consolidate?	✅	✅
Transfer to student?	✅*	❌
Release a cosigner?	✅	❌**

*Some lenders allow you to refinance parent loans into the child’s name.

**Federal loans don’t have cosigners, but they may have endorsers. This federal student loan fact sheet indicates that the same endorser must agree to repay the PLUS Consolidation Loan.

The next steps will differ depending on whether you want to refinance parent student loans in the parent’s name or transfer them to the child.

When refinancing from federal to private student loans, the main factor you must consider is losing federal benefits. Parents considering refinancing loans should look at their current financial condition. If the child is in a situation where they can take on the debt payment (and the parents planned to transfer the debt to their child), they should discuss whether they’re comfortable losing federal benefits for the parent and the child. If the parent chooses to repay the loan for their child regardless of the child’s financial condition, the parent should consider the impact of losing the benefits that accompany federal loans. And as always, when in doubt or stuck at a crossroads, consult a financial professional.

How to refinance parent student loans in the parent’s name

Refinancing a parent student loan in your name can help lower your interest rate or monthly payment, but eligibility depends on your credit and income. Here’s how to do it:

1. Check your credit and finances. Lenders typically require good credit (often 650+), a stable income, and a reasonable debt-to-income (DTI) ratio. If your credit needs improvement, consider boosting it before applying.
2. Compare lenders with parent-specific options. Some student loan refinance lenders cater specifically to parent borrowers and may offer better rates or flexible repayment terms. Prequalify with multiple lenders to see personalized rates without affecting your credit score.
3. Use a refinance calculator to estimate savings. Run the numbers to ensure refinancing actually lowers your costs. Look at total interest paid, not just monthly payments, to avoid stretching the loan term unnecessarily.
4. Gather required documents. Most lenders will ask for proof of income (pay stubs or tax returns), a government-issued ID, and current loan details. Some lenders may also consider retirement assets when evaluating eligibility.
5. Submit your application and monitor loan payoff. Once approved, your new lender will typically pay off your old loan directly. Keep making payments until you receive confirmation that the old loan is closed.
6. Set up automatic payments. Many lenders offer an interest rate discount (usually 0.25%) for setting up autopay, which can help save money over time.

How to refinance parent student loans into the child’s name

Transferring a parent student loan to the child through refinancing can relieve the parent of financial responsibility—but approval depends on the child’s creditworthiness. Here’s what to do:

1. Confirm the lender allows transfers. Not all refinance lenders allow parents to transfer loans to a child. Check lender policies before applying.
2. Ensure the child qualifies independently. The child must meet the lender’s credit and income requirements to refinance without a cosigner. If their credit is limited, they may need to build credit before qualifying.
3. Consider using a cosigner (if needed). Some lenders allow another cosigner (not the parent) to help the child qualify. The cosigner can later be released if the child meets lender requirements after a set period.
4. Compare lenders offering student loan transfers. Look at interest rates, repayment options, and any fees. Some lenders offer borrower benefits like hardship forbearance or career coaching, which could be useful.
5. Submit the application and verify loan transfer. Once approved, the new lender will pay off the parent’s loan. Parents should check their loan servicer account to ensure the loan is closed and their obligation is removed.
6. The child should manage repayment carefully. Taking on a refinanced student loan impacts credit and cash flow. Setting up autopay and tracking spending can help avoid missed payments and protect credit.

If the child is approved, the parent will be relieved of the debt. This will improve the parent’s debt-to-income ratio (DTI) and free up cash flow. In contrast, the child’s credit will dip, but this should be temporary as long as the child makes on-time payments. This will, in turn, increase the child’s DTI, so it’s wise for the child to keep an eye on this to ensure they don’t take on additional debt that would cause them to exceed the thresholds to be approved for other financing, such as a mortgage. A benefit is that if the child has thin (little to no) credit, this is a terrific opportunity to build a credit history and work toward an excellent credit rating. But this will reduce the child’s free cash flow within their budget, so they must account for this when tracking their income and expenses.

Best lenders to refinance parent student loans

The table below includes five of our picks for the best refinance student loan lenders that allow you to refinance parent loans in your name or your child’s name. We selected these lenders based on hours of research comparing rates, fees, and features.

Click the lender’s name in the table to find out more about its refinance loan for parents.

Lender	Starting rates (APR)	Transfer to child?
Credible	4.75%	✅*
ELFI	5.28%	✅
Earnest	5.44%	❌
RISLA	6.34%	✅**

*Not all of Credible’s partner lenders allow this.

**Parent must remain a cosigner on the loan.

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Credible

Best for Comparison Shopping

4.8 _/5

View Rates

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Why we picked it

Credible acts as a marketplace, aggregating refinancing offers from different lenders, making it an excellent choice for parents who want to see multiple rates. This level of comparison can lead to lower interest rates or friendlier repayment terms. 

Transferring the loan to the child depends on the policies of the specific lender you select through Credible.

• Access to multiple refinancing offers from various lenders
• Simplified comparison of rates and terms
• User-friendly platform for a quick and efficient refinancing process

Rates (APR)	3.85% – 12.66%
Loan amounts	$1,000 – 100% of outstanding balance
Repayment terms	5, 7, 10, or 15 years

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ELFI

Best for Personalized Service

4.7 _/5

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Why we picked it

Education Loan Finance (ELFI) stands out for its personalized service in refinancing parent loans. With dedicated advisors, ELFI helps parents navigate the refinancing process, ensuring they find a plan that best suits their financial situation. 

ELFI offers competitive rates and terms, allowing parents to transfer loans to a child subject to eligibility.

• Tailored refinancing options for parent loans
• Dedicated loan advisors
• No application or origination fees

Rates (APR)	4.86% – 8.44%
Loan amounts	$10,000 – 100% of outstanding balance
Repayment terms	5, 7, 10, 15, or 20 years

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Earnest

Best for Skipping a Payment

4.6 _/5

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Why we picked it

Earnest offers a unique feature that allows parents to skip one payment per year, providing flexibility in managing their finances. Parents can customize their loan terms by choosing the repayment term. 

One drawback, however, is that Earnest doesn’t allow parent loans to be refinanced into a child’s name.

• Option to skip one payment per year
• Customizable loan terms
• No fees

Rates (APR)	4.29% – 9.73%
Loan amounts	$5,000 – $500,000
Repayment terms	5 – 20 years

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RISLA

4.4 _/5

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Why we picked it

RISLA (Rhode Island Student Loan Authority) is a nonprofit lender specializing in education loans, including refinancing options for parents. Its emphasis on borrower protection makes it a reliable choice, especially for those concerned about unexpected financial hardships.

• Strong focus on borrower protection and financial hardship
• Competitive interest rates
• Nonprofit lender with a focus on education loans

Rates (APR)	3.99% – 8.04%
Loan amounts	$7,500 – $100,000 or $250,000 depending on degree earned
Repayment terms	5 – 15 years

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Alternatives to refinancing for Parent PLUS loans

If you have a Parent PLUS loan and don’t want to lose access to federal benefits due to refinancing, consider federal student loan consolidation.

To consolidate a Parent PLUS loan, you must apply for a Direct Consolidation Loan by visiting the StudentAid website. Be prepared to provide the following information:

• Your FSA ID
• Current loan information
• Financial information

Consolidating your loans with a Direct Consolidation Loan can help you become eligible for the income-contingent repayment (ICR) plan. This plan determines your monthly payment as the lesser of:

• How much you’d pay over 12 years based on your income 
• 20% of your discretionary income

As an alternative to federal student loan consolidation, you could also consider refinancing a Parent PLUS loan with a home equity line of credit (HELOC) or home equity loan. Remember: If you default on either of those loans, a lender could foreclose on your home.