Student Loans

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.

Jeff Gitlen

05/04/2020

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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

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

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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

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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

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