Best Parent Student Loans
Parents who want to have a role in helping fund their child’s education have several options for taking out their own parent student loans.

Many or all of the companies featured provide compensation to LendEDU. These commissions are how we maintain our free service for consumers. Compensation, along with hours of in-depth editorial research, determines where & how companies appear on our site.
Many parents love nothing more than to see their child receive a college education that can land them a great job. But with the cost of college continuing to climb, they might doubt their ability to pay for that education out of pocket.
Luckily, parents can consider taking out parent student loans through the Department of Education or private lenders. These loans require a strong personal credit history and will be taken out in the parent’s name.
To learn more, compare the federal and private student loans for parents below. By doing this, you can better understand which option may offer you the lowest rate before you apply.
On this page:
- Compare Parent Student Loans
- Federal Parent PLUS Loan
- Best Private Student Loans for Parents
- Steps to Take Before You Apply
Compare Parent Student Loans
Use the table below to help you select a loan that best fits your needs. Each of the options in the table are discussed in more detail further down the page.
Loan | Variable Rates (APR) | Fixed Rates (APR) | Origination Fee | Term Lengths | In-School Repayment |
Federal Parent PLUS | N/A | 7.08% | 4.25% | 10 – 25 years | Immediate or full deferment |
College Ave Parent | 2.09% – 10.25% | 4.64% – 12.01% | None | 5 – 15 years | Interest only, partial, or full payments |
Citizens Bank Parent | 5.05% – 8.19% | 5.48% – 8.52% | None | 5 or 10 years | Interest only or full payments |
Federal Parent PLUS Loan
Students and parents should typically consider federal student loans before looking into other options.
If your child has already met federal loan limits or if you simply don’t want your child to have to take out loans in his or her name, you have the option of taking out a Parent PLUS Loan.
To be eligible, you must not have any adverse credit history (such as bankruptcies) and your child must be attending school at least half-time. Before applying for a Parent PLUS Loan, your child should fill out the FAFSA to see what other aid he or she is eligible for.
Here are some key details about Parent PLUS Loans:
- Fixed Rates (APR): 7.60%
- Variable Rates (APR): Not offered
- Origination Fee: 4.236%
- Soft-Credit Check: Not available; hard credit check only
- Repayment Terms: 10 years (standard) or 25 years (graduated)
- In-School Repayment: Partial payments, full payments, full deferral
- Grace Period: 6 months after child leaves school
Best Private Student Loans for Parents
Parents also have the option to apply for private student loans. These might be a good option for parents who want to maintain control of the loan funds. Any money released for the loan will be sent right to the parent, not the child.
Keep in mind that you’ll need a good credit score to take out private loans. And, the better your credit history, the less you’ll have to pay in interest.
The following companies are our partners that have been vetted extensively by our editorial team and have been rated on a scale of 0 to 5. Our partners update us of any product changes, so we can be sure to keep the information on this page accurate for our readers.
Best Overall: College Ave Parent Student Loan
Fixed Rates
4.64% – 12.01%
Variable Rates
1.79% – 11.00%
Loan Amounts
$1,000 – 100% of school-certified cost of attendance
LendEDU Rating: 5/5
College Ave is an online lender that offers different types of student loans. The College Ave Parent Student Loan is our highest rated student loan for parents. Here is some more information about this loan:
- Fixed APR: 4.64% – 12.01%
- Variable APR: 2.09% – 10.25%
- Loan Amounts: $1,000 – 100% of school-certified cost of attendance
- Soft-Credit Check: The company’s website has a tool that provides a soft credit check and lets you know if your credit is sufficient.
- Repayment Terms: 5 years
- In-School Repayment: Paying the interest each month is mandatory. After that, you can pay as much or as little as you want.
- Grace Period: None
- Unique Benefits: Parents can get up to $2,500 of the loan delivered to them so they can control the spending on extra educational expenses.
Runner-up: Citizens Bank Parent Student Loan
Fixed Rates
4.99% – 8.18%
Variable Rates
2.18% – 7.56%
Loan Amounts
$1,000 – $350,000
LendEDU Rating: 4.4/5
Citizens Bank is the 13th largest retail bank in the United States. The company offers a student loan product for parents designed to help them share the responsibility of repayment with their children. Here is some more information about Citizens Bank’s parent loans:
- Fixed APR: 5.48% – 8.52%
- Variable APR: 3.57% – 6.71%
- Loan Amounts: $1,000 – $350,000
- Soft-Credit Check: You can get a rate quote with a soft credit check. If you apply for multi-year approval, you can take out loans after your first year with just a soft credit check.
- Repayment Terms: 5 years
- In-School Repayment Options: Options include full payments or interest-only payments.
- Grace Period: None
- Unique Benefits: Multi-year approval allows borrowers to secure funding in the future without additional hard credit checks.
Steps to Take Before You Apply for a Parent Student Loan
If you are unsure what type of parent loan to take out, check out our Parent PLUS Loan vs Private Student Loan Guide, which explains which is likely better for you depending on your situation.
The first thing you’ll want to research for when looking into a parent student loan program is the interest rate. A lower rate will reduce the overall amount you’ll have to pay back in interest.
The second factor to consider are the repayment plans. Decide how long you’d like to make payments for and what your monthly payment will be, and then look for a loan that can meet those terms.
Lastly, consider if you want to make payments while in school or defer payments until after your child leaves school. While making payments right away can help save money, some parents might not be able to afford it immediately.
Once you select a company to borrow from, you’ll need to gather all of the necessary information to apply. This information may include, amongst other things:
- Personal information: credit score, credit history, driver’s license, Social Security number
- Employment information: proof of income, employer information, 1099 statements
- Education information: school the child is attending, additional student aid, cost of attendance
What to Know About Parent Student Loan Repayment
Parents have a variety of repayment options with the federal Parent PLUS loan and private parent student loans. Some options allow you to begin repaying the loan while your child is still in school. Other plans allow you to wait until they are out of school. You’ll want to consider those terms carefully to be sure to find the plan that works best for you.
After your child graduates, you can even refinance Parent PLUS loans in your child’s name. But, of course, this will only work if your child agrees to it, meets certain criteria, and if they can qualify for a loan on their own.
If you take a student loan out in your name, there is no way to force your child to refinance the loan payments in their name. However, many parents have found this funding source invaluable for protecting their child’s financial health while funding their education.
Ready to take out a parent student loan? Check out our top-rated lender College Ave
Fixed Rates
4.64% – 12.01%
Variable Rates
1.79% – 11.00%
Loan Amounts
$1,000 – 100% of school-certified cost of attendance
Author: Jeff Gitlen
