The Best Lenders to Refinance Parent PLUS Loans to Save Money or Transfer to the Debt Your Child

Refinancing a Parent PLUS loan can lower your interest rate, reduce monthly payments, or even transfer the debt to your child. But it also means losing federal protections like income-driven repayment and loan forgiveness.

This guide breaks down how refinancing works, when it makes sense, and how to transfer a Parent PLUS loan to your child. If refinancing isn’t the right fit, we’ll also cover alternatives to help you manage repayment.

Lender	Our rating	Allows transfer to student?
SoFi	4.9/5	✔️
ELFI	4.7/5	✔️
Earnest	4.6/5	Ｘ
Citizens Bank	4.1/5	✔️

Lenders that refinance Parent PLUS loans

Refinancing Parent PLUS loans can help lower interest rates or simplify repayment by combining multiple loans. Some lenders also allow transferring the loan to the child, but this option isn’t universally available.

Not all lenders permit this transfer because it increases their risk. Parents typically have stronger credit and income histories, making them more reliable borrowers. In contrast, a child may have limited credit or unstable income, which raises the lender’s risk of default.

Some lenders also avoid these transfers due to servicing complexities. Refinancing into a child’s name requires a full credit evaluation and legal restructuring, making the process more complicated than a standard refinance.

We chose these lenders based on interest rates, terms, repayment flexibility, and borrower benefits. Some stand out for transfer options, while others excel in repayment features. Comparing lenders ensures you find the best fit for your financial goals.

SoFi

Best Online Lender

5.0 _/5

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Why it’s one of the best

SoFi is an online lender that not only allows you to refinance Parent PLUS loans but also offers the option to transfer the loan to your child’s name. This can be a significant advantage if your child is ready to take over the debt responsibility. SoFi also offers unique member benefits, such as exclusive discounts and access to financial planning tools.

SoFi’s refinancing process is streamlined and user-friendly. You can check your rate without affecting your credit score. The absence of application, origination, and prepayment fees makes SoFi appealing for parents looking to refinance.

• SoFi members gain access to financial advice and more
• No required origination fee
• Check your rate without affecting your credit

Loan details

Rates (APR)	5.24% – 9.99%
Loan amounts	$5,000 – total outstanding balance
Repayment terms	5, 7, 10, 15, or 20 years

ELFI

Best Personalized Support

4.7 _/5

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Why it’s one of the best

ELFI is a lender that provides the option to refinance Parent PLUS loans into your child’s name, offering flexibility for families transitioning debt responsibility. Before submitting a complete application, borrowers can get a rate estimate with a soft credit pull, allowing them to see personalized savings without affecting their credit score.

ELFI stands out by assigning each borrower a dedicated Student Loan Advisor who guides them through the entire refinancing process. This personalized service ensures that borrowers understand their options and can make informed decisions about their refinancing strategy.

• Assigns each applicant a Student Loan Advisor
• No application, origination, or prepayment fees
• Prequalify and see personalized savings with no impact on your credit

Loan details

Rates (APR)	5.28% – 8.99%
Loan amounts	$10,000 – 100% of outstanding balance
Repayment terms	5, 7, 10, 15, or 20 years

Earnest

Best Skip-a-Payment Benefit

4.6 _/5

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Why it’s one of the best

Earnest is a top-rated student loan refinance lender known for its flexible repayment options. Borrowers can refinance Parent PLUS loans, although they cannot transfer the loan to a child’s name through Earnest. One of the unique benefits of refinancing with Earnest is the ability to skip one payment per year without penalty, which can be helpful during times of financial strain.

Earnest takes a holistic approach to the application process, considering more than just the applicant’s credit score. It evaluates various factors to provide a fair approval process, making it accessible even for those without perfect credit. Earnest also has no set income requirements, allowing more borrowers to refinance.

• Pick your payment and loan term
• Skip one payment per year if needed
• Check your rate without affecting your credit

Loan details

Rates (APR)	4.99% – 9.74%
Loan amounts	$5,000 – $500,000
Repayment terms	5 – 20 years

Citizens Bank

4.1 _/5

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Why it’s one of the best

Citizens Bank is a well-established national bank offering a specific student loan refinance product for parents looking to transfer their Parent PLUS loans to their child. This lender allows borrowers to choose their repayment term, providing flexibility in how soon they want to pay off the loan.

One of the advantages of refinancing with Citizens Bank is the ability to refinance loans for multiple children, even while they’re in school. Borrowers can check their rate with no impact on their credit score, making it easy to explore your options without commitment.

• Choose your repayment term
• Check your rate with no impact on your credit

Loan details

Rates (APR)	6.49% – 12.43%
Loan amounts	$10,000 – $500,000
Repayment terms	5 – 20 years

How does refinancing a Parent PLUS loan work?

Refinancing a Parent PLUS loan means replacing it with a private loan, ideally at a lower interest rate. You apply with a private lender, and if approved, the lender pays off your federal loan, leaving you with a new repayment plan under private terms.

What federal benefits do you lose?

Refinancing a Parent PLUS loan removes it from the federal student loan system, meaning you lose access to:

• Federal death and disability discharge: If the borrower or student passes away or becomes permanently disabled, federal loans may be discharged, but private lenders set their own policies.
• Income-driven repayment (IDR) plans: Parent PLUS loans can be consolidated and enrolled in Income-Contingent Repayment (ICR), but refinancing eliminates this option.
• Loan forgiveness programs: You won’t qualify for Public Service Loan Forgiveness (PSLF) or other federal forgiveness programs.
• Deferment and forbearance options: Federal loans offer flexible hardship protections, which private loans may not match.

Does it work the same if you are transferring the loan to the student?

The process is similar, but not all lenders allow Parent PLUS loans to be transferred to the student. If a lender offers this option, the child must qualify based on their credit score and income. Once approved, the refinanced loan is solely in the student’s name, and the parent is released from responsibility.

However, this process still eliminates federal protections. The student takes on a private loan with no access to federal repayment programs or forgiveness options.

Refinancing Parent PLUS loans

Refinancing can help lower interest rates, reduce monthly payments, or transfer the loan to the student. But it’s not right for everyone—understanding when to refinance is key.

Should you refinance your Parent PLUS loans?

Refinancing may be a good idea if:

• You can qualify for a lower interest rate, saving money over time.
• You want to transfer the loan to your child and a lender allows it.
• You don’t need federal benefits and prefer the flexibility of private loans.

You may want to reconsider refinancing if:

• You rely on IDR, PSLF, or deferment options.
• You won’t qualify for a lower rate, making refinancing unnecessary.
• You’re concerned about stricter repayment terms and fewer hardship options.

How to refinance Parent PLUS loans

1. Compare lenders. Look for competitive interest rates, flexible repayment terms, and transfer options.
2. Check eligibility. Review income, credit score, and loan requirements before applying.
3. Apply for prequalification. Many lenders let you check your rate without impacting your credit score.
4. Submit your application. Provide financial documents, including proof of income and student loan details.
5. Review and accept the loan. Once approved, sign the new loan agreement.
6. Repay the new loan. Set up autopay to avoid missed payments.

Alternatives to consider

If refinancing isn’t the best choice, consider:

• Extra payments on the loan. Paying more than the minimum each month can reduce interest costs without refinancing.
• ICR. Parent PLUS loans can be consolidated into a Direct Loan and enrolled in ICR.
• PSLF or other forgiveness programs. If you work for a qualifying employer, keeping the loan federal may be beneficial.
• Home equity line of credit (HELOC): If you have a certain amount of equity in your home, you may qualify for a HELOC. You can use a HELOC to pay off student loans. But a significant downside is if you default on the loan, a lender can foreclose on your home.
• Home equity loan. You can also use a home equity loan to pay off student loans. But similar to a HELOC, a lender can take your home if you fail to repay the loan as promised.

Refinancing Parent PLUS loans to the student

Some parents want to pass loan responsibility to their child. Refinancing is the only way to do this legally, but it comes with pros and cons.

Should you transfer Parent PLUS loans to your child?

It may be a good option if:

• Your child has strong credit and income to qualify.
• You want to remove the debt from your finances and credit report.
• The student is comfortable managing the loan independently.

However, reconsider if:

• The student struggles to qualify for a lower rate or better terms.
• You’re unsure if they can handle repayment long-term.
• Losing federal benefits outweighs the benefits of transferring the loan.

How to refinance Parent PLUS loans to the student

1. Find a lender that allows transfers. Not all lenders refinance Parent PLUS loans into the student’s name.
2. Have the student apply. The child must qualify based on their credit history and income.
3. Complete the refinance process. Once approved, the lender pays off the Parent PLUS loan, and the student is solely responsible.

Tip

The process of refinancing Parent PLUS loans into your child’s name varies by lender. Some lenders require you to add your child as a cosigner on the refinanced loan first so they can refinance again in their name afterward. 

Read More

How to Transfer a Parent PLUS Loan to a Student

Alternatives to consider

If transferring the loan isn’t feasible, parents and students can explore:

• Earning forgiveness through PSLF. If eligible, parents may be better off keeping the loan under federal protection.
• Co-signing a private refinance loan. Some lenders allow co-signing, so the parent can help the student qualify before refinancing in their name later.
• Parent-student payment agreements. Parents can keep the loan but arrange for the student to contribute to payments.

How we rated lenders that refinance Parent PLUS loans

LendEDU evaluates student loan companies to help readers find the best options for refinancing student loans. Our latest analysis reviewed 696 data points from 24 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.

Lender	Our rating	Allows transfer to student?
SoFi	4.9/5	✔️
ELFI	4.7/5	✔️
Earnest	4.6/5	Ｘ
Citizens Bank	4.1/5	✔️