4 Best Parent Student Loans of 2024

With tuition and school fees continuing to climb, many parents want to do their part to keep their children from paying for their entire education out of pocket.

Parent student loans can help cover educational expenses if your kids are heading to college. You take out these loans in your name instead of your child’s, which requires you to have requiring good credit. Here are the best federal and private parent student loans.

Lender	Best for	LendEDU rating
Dept. of Education	Federal student loans	Not rated
College Ave	Private student loans	5/5
Earnest	Large loans	4.7/5
SoFi	Member benefits	4.7/5

Federal Parent PLUS Loan

If your child has already met federal loan limits or you don’t want your child to have student loans in their name, you can take out a Parent PLUS Loan. See more about these loans in the table below:

Term	Details
Rates	Fixed at 9.08%
Origination fee	4.228%
Credit check?	✔️
Loan limits	100% of cost of attendance, less other financial aid
Terms	10 – 25 years
In-school repayment options	Partial, full, or deferred
Grace period	6 months after the child leaves school

To be eligible for a Parent PLUS Loan, you must meet credit requirements, and your child must attend school at least half-time. If you have an adverse credit history, such as a foreclosure or bankruptcy discharge within the last five years, you may still qualify for federal parent loans in one of two ways:

Get an endorser who, much like a cosigner, will repay the loans if you can’t. Note that your endorser can’t be your child.
Appeal your credit decision and provide proof of extenuating circumstances.

If you opt for the latter, you’ll also need to complete PLUS Credit Counseling before you qualify for a Parent PLUS Loan. For a more in-depth rundown of your options, see our student loans guide for parents with poor credit.

Tip

Before applying for a Parent PLUS Loan, your child should fill out the FAFSA and wait to receive their financial aid award letter to see what other aid they can get.

Best private parent student loans

Parents can also apply for private student loans. Private lenders issue these loans and are not affiliated with any federal government education loan program.

As such, private student loans for parents don’t offer the same protections or forgiveness options as federal PLUS Loans. Still, when you’ve exhausted your federal loan options, private student loans can help ease the tuition burden.

We researched the best private student loans to determine which offer the best terms for parents.

College Ave

Best overall

5.0 _/5

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Why it’s one of the best

College Ave offers student loans, including parent loans, and you don’t need to be a parent to qualify. You can take out a College Ave parent loan on behalf of your grandchildren, nieces or nephews, or a student for whom you have legal guardianship.

With three repayment options over five to 15 years, College Ave loans can work for almost every budget. But College Ave doesn’t provide a grace period. You must pay at least your monthly interest charges while your child is in school.

Flexible repayment plans and terms
No application, origination, or prepayment fees
3-minute application

Loan details

Rates (APR)	4.22% – 17.99%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5 – 15 years

Eligibility requirements

Must be a U.S. citizen or permanent resident
Must pass credit history and income review
Student must attend an eligible institution
Student must meet the school’s satisfactory academic progress (SAP) guidelines

Earnest

Best for large loans

4.7 _/5

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Why it’s one of the best

Earnest lets parent borrowers defer payments while their children are in college. Then when your child leaves school, you’ll enjoy a nine-month grace period before any payments are due. You can use that time to pay down your principal, but you’re not required to pay anything.

Earnest matches competitors’ rates and offers a 0.25% autopay discount, ensuring you get the best rate possible. To qualify for an Earnest parent loan, you’ll need a minimum 650 credit score, $35,000 or higher annual income, and no bankruptcies or accounts in collections.

Deferred payments while the student is in school
9-month grace period
Not available in Nevada

Loan details

Rates (APR)	As low as 4.17%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5, 7, 10, 12, or 15 years

Eligibility requirements

Must be the age of majority in state of residence
U.S. citizen, permanent resident, DACA recipient, or asylee.
Minimum of three-year credit history
Student must enroll at least half-time
Only bachelor’s degree programs and higher
Student must attend a Title IV-qualified, not-for-profit, 4-year institution

SoFi

Best for member benefits

4.7 _/5

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Why it’s one of the best

SoFi parent loans are built for borrowers from the bottom up. You won’t pay origination or late fees when borrowing from SoFi. Plus, take advantage of exclusive members-only benefits, including financial planning and rate discounts if you take out another SoFi loan.

SoFi doesn’t defer payments, so be prepared for immediate repayment. You’re only required to pay interest while your child is in school. Plus, you can use the points you earn through the SoFi Member Rewards Program to pay down your loan faster.

No fees
Multiple rate discount options
Earn points with SoFi Member Rewards

Loan details

Rates (APR)	6.07% – 15.86%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5, 7, 10, or 15 years

Eligibility requirements

U.S. citizen, permanent resident, or non-permanent resident alien
Only bachelor’s degree programs and higher
Student must enroll at least half-time
Student must attend an eligible institution

What is a parent student loan?

There are several types of student loans, but a parent student loan is a loan that, primarily, a parent or guardian obtains to pay for education costs on behalf of an eligible student. Repaying parent student loans is the borrower’s responsibility, not the student’s.

Students can agree to make payments toward parent loans, but they’re not required to do so. The amount you can borrow with a parent loan depends on whether you’re seeking federal or private funding, the cost of attendance (COA) at the student’s school, and other amounts of financial aid received.

Below is a breakdown of how federal and private parent student loans match up:

	Parent PLUS Loans	Private parent loans
Borrower eligibility	Parent, adoptive parent, or stepparent	Parent, grandparent, other family member, family friend, or sponsor
Rate	9.08% fixed	As low as 4.17% fixed and variable
Loan fee	4.228%	None
Loan amount	100%	$1,000 to 100%
Repayment terms	10 – 25 years	5 – 15 years

Potential borrowers: One of the main differences between federal and private parent student loans is the restrictions on would-be federal borrowers. Parent borrowers of many private lenders can be anyone wanting to support a college student.

Rates: While federal parent student loans charge a relatively high fixed interest rate, private loan parent borrowers may find the lower rates these lenders advertise harder to acquire without excellent credit.

Fees: Federal parent PLUS loans charge an origination fee of more than 4% of the loan amount. But you’ll only find late payment fees for several private parent loans.

Loan limits: Both federal and private lenders offer generous loan limits. They’ll generally pay for your student’s total COA minus scholarships, grants, or other types of aid. The typical private loan must be at least $1,000, however.

Repayment term years: While private parent loans typically allow borrowers less time to repay their loans, their shorter terms allow parents to save more on interest. Allowing up to 25 years, federal parent PLUS loans give borrowers more time but will cost more long term.

Deferment: Parent borrowers do have the option to defer their federal loan payments until their student graduates or exit the program, plus a six-month grace period.

Some private lenders also allow deferment, including a six-to-nine-month deferment. However, others may require borrowers to at least pay interest on the loan.

Best private student loans

Pros and cons of parent student loans for college

Deciding whether to apply for federal or private parent student loans isn’t always a no-brainer. Here are some pros and cons to help decide:

Pros and cons of Parent PLUS Loans

Pros

Not income-dependent

Income level doesn’t impact loan approval amounts.
Fixed rates

Fixed rates mean consistent monthly payments.
Deferred payments

Delay payment until your student graduates, drops below half-time, or withdraws.
Payment plan

Enroll in an income-contingent repayment plan to suit your budget.
100% costs covered

Borrow as much as your student needs, minus financial aid.
Long terms

Federal loans may allow borrowers up to 25 years to repay.
Potential loan forgiveness

“Forgiven” aren’t required to pay back the loan balance.

Cons

Need-based

You’ll need to prove financial need.
Fewer term options

There isn’t much flexibility for borrowers planning for fast repayment.
Credit history requirement

Parent borrowers with turbulent credit history, such as bankruptcies, may have difficulty getting approved.
No automatic deferment

Unless you request deferred payments, repayment automatically starts upon loan disbursement.
Loan fees

There’s currently a 4.228% loan fee in addition to interest.

Pros and cons of private parent student loans

Pros

Not need-based

Potential borrowers aren’t required to demonstrate financial need.
100% costs covered

Many private lenders offer 100% COA, minus financial aid.
Competitive rates

Starting fixed and variable interest rates are often lower than federal loans.
No fees

Many private lenders charge no loan origination, application, or hidden fees.
Wide range of potential borrowers

Stepparents, legal guardians, other relatives, and even family friends may also apply.

Cons

Income and credit requirements

If you’re approved with poor credit or low income, you might pay way more over the life of the loan.
Limited borrower assistance

Assistance, such as loan forgiveness and repayment plans, are scarce.
Variable rates

Even low variable rates can create unpredictable and potentially high monthly payments.

Steps to take before you apply for a parent student loan

Taking out a parent student loan is a process best handled with forethought and patience.

Our expert weighs in: Private parent loans vs. federal Parent PLUS Loans

Crystal Rau

CFP®

If somebody has poor credit, I will typically recommend the Parent PLUS Loan over a private lender. Even though there is a credit check, they will typically get more favorable options with the PLUS Loan. If somebody has great credit, a private student loan tends to be the better option due to lower rates and no origination fees. So it starts with one’s creditworthiness.

Give yourself time to explore your options, and follow these steps to ensure you’re getting the best loan for you and your family:

Compare rates. Research each private lender’s rates and compare them to the rate you’d get with a federal parent loan. Note the four or five lowest possible rates.
Prequalify. Check your personal rates with the lenders you prioritized in step one. Once you know what rates you’ll qualify for with each lender, it’s time to evaluate your potential loan terms.
Weigh your repayment obligations. Decide what monthly payment you can afford and whether in-school or deferred payments are better for your budget. While making payments right away can help save money, some parents might not be able to afford it immediately.
Consider standout features. You may find that your options are similar across lenders. If so, note what each lender offers that the others don’t. Of those features, which ones will make a substantial difference in your borrowing experience?

Tip

If you are unsure what type of parent loan to take out, check out our Parent PLUS Loan vs. private student loan guide to help you choose the best option.

Once you select a company to borrow from, gather all the necessary information to apply. This information may include:

Personal information: Driver’s license or other government-issued photo ID and Social Security number
Financial information: Pay stubs, tax returns, and 1099 statements
Education information: Your child’s school, any additional aid they’ll receive, and their COA

To help save time, gather this information before you start prequalifying with different lenders. That way, when you find a loan offer you like, you can jump right into the application without missing a beat.

How to repay student loans as a parent

Parents have various repayment options with the federal Parent PLUS Loan and private parent student loans. Your lender may let you defer payments while your child is in school, but that might not be the best option for your financial situation.

Here’s a quick look at the differences between in-school repayment and deferred to help you decide:

	In-school repayment	Deferred repayment
Payments begin …	30 – 45 days after loan is disbursed	6 – 9 months after student leaves school
Pay toward …	Interest only or interest + principal	Interest + principal
Interest still accrues?	Yes	Yes
Key advantage	Pay down loan faster	More affordable in the short term
Key disadvantage	May not be budget-friendly	Pay more in interest

Note that deferring payments on federal parent loans delays your eligibility for federal student loan forgiveness.

If you hope to take advantage of this, your loan servicer can help you find ways to keep your monthly payments at reasonable levels while allowing you to make progress toward forgiveness.

In addition to comparing the benefits and drawbacks of in-school and deferred payments, you’ll also want to consider:

The length of your repayment period
Whether you can afford to pay extra toward your principal
The potential impact of each repayment method on your future financial goals

After your child graduates, you may be able to refinance Parent PLUS Loans in their name. But this will only work if your child agrees and can qualify for a loan independently.

Refinancing won’t make sense in all situations, but it’s an option you and your child can explore together. Whether you and your child decide to refinance, you will have protected their health while funding their education—and that’s something to be proud of.

FAQ

Can I qualify for parent student loans with bad credit?

Yes, you can still qualify for parent student loans with bad credit. You’re more likely to get approved for a federal parent student loan as long as you don’t have previous loans with late payments or bankruptcies. But if you do, you may still be eligible if you meet other qualifiers.

With private parent student loans, your path may be more difficult. Many lenders choose to keep their credit requirements close to the vest, but they tend to take a holistic approach, where your income and other factors come into play. You may get approved at a higher rate.

Can parent student loans be deferred?

Yes, with federal and most private parent student loans, you can defer payments, typically up to several months after your student graduates.

You may defer a Parent PLUS Loan for six months after your student graduates or until s/he leaves the program or drops below half-time status. Typically, you may defer a private loan for six to nine months, but some lenders require you to at least pay the interest during attendance.

Can a parent student loan be transferred to the student?

No. Technically speaking, a federal Parent PLUS Loan cannot be transferred to a student. However, your student can refinance it by opening a private refinance student loan and using his/her new loan to pay off your current federal loan. You can also use this process to transfer a private parent student loan.

Are there any tax benefits for parent student loans?

Yes, you can deduct as much as $2,500 from your taxes for the interest you paid on any federal and private student loan, including parent student loans, as long as the loan was for you, a spouse, or a dependent.

How we picked the best parent student loans

LendEDU evaluates student loan lenders to help readers find the best student loans. Our latest analysis reviewed 725 data points from 25 lenders and financial institutions, with 29 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best parent student loans

Lender	Best for	LendEDU rating
College Ave	Private student loans	5/5
Earnest	Large loans	4.7/5
SoFi	Member benefits	4.7/5