Refinance Parent PLUS Loans

Refinancing Parent PLUS loans can lower your interest rate and save you money. Some lenders even allow you to transfer the debt into your child’s name. However, you may not want to refinance Parent PLUS loans if you don’t want to lose federal loan benefits.

Below are four lenders that refinance Parent PLUS loans. We’ll also discuss whether refinancing makes sense in certain situations.

Lender	Our rating
SoFi	4.9/5
Earnest	4.8/5
ELFI	4.8/5
Citizens Bank	4.1/5

Lenders that refinance Parent PLUS loans

Refinancing Parent PLUS loans can help you reduce your interest rates or simplify repayment by combining multiple loans into one. Several lenders offer refinancing options tailored to the needs of parents, with some even allowing the loan to be transferred to the child.

Comparing these lenders is crucial to finding the best terms and features that align with 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

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

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

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

When it makes sense to refinance Parent PLUS loans

Consider refinancing if…	Reconsider if…
You can qualify for a lower rate	You can’t qualify for a lower rate
You want to transfer the debt to your child	You don’t want to lose access to federal benefits

Consider refinancing Parent PLUS loans if one of the following applies to you:

• You can qualify for a lower rate. Depending on your credit score and finances, you might be able to secure a lower interest rate. This could save you thousands of dollars over the life of the loan.
• You want to transfer the debt to your child. The only solution is to refinance if you want to make your child legally responsible for repaying the debt.

When to reconsider refinancing Parent PLUS loans

Refinancing can be beneficial, but it isn’t the right move for everyone. It’s likely better to consider other solutions in the following situations.

• You can’t qualify for a lower rate. Refinancing might not make sense if you can’t qualify for a lower interest rate since it won’t save you money.
• You don’t want to lose access to federal benefits. If you plan to take advantage of federal benefits, such as income-driven repayment plans or student loan forgiveness programs, you won’t want to refinance.

How to refinance Parent PLUS loans

If you’re ready to refinance Parent PLUS loans you acquired to help your child pay for college, take the following steps:

1. Shop around. To find the student loan refinancing option that best matches your needs, compare rates, terms, fees, and eligibility requirements across multiple student loan lenders.
2. Submit a refinance application. After you’ve chosen the best lender for you, submit a loan application. You’ll likely need to provide information including your bank statements, government-issued ID, most recent pay stubs, and most student loan statements.
3. Review and sign your loan agreement. If approved, a lender will send you a loan agreement. Review it to make sure you agree with the terms before signing.
4. Repay your new loan as promised. Make sure to pay your loan as promised to avoid late fees and possible damage to your credit. One way to ensure your future bills are paid on time is to enroll in autopay.

How to refinance Parent PLUS loans to a child

If you’re a student and want to take over the loan from your parent, take these steps:

1. Make sure you’re ready to take on new debt. Although requirements vary, you’ll likely need good credit and a solid income to qualify for a loan. Review your income and credit score to see where you stand.
2. Compare lenders. While comparing your options, make sure the lender allows your parent to refinance Parent PLUS loans into your name. 
3. Submit a refinance application. Once you’ve found a lender, submit a loan application, and provide any required documentation, such as proof of income, bank statements, and pay stubs.
4. Manage your new loan. Once the original PLUS loan is paid off, you’ll be responsible for repaying the debt. Consider enrolling in autopay to avoid missing payments.

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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. 

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Alternatives to refinancing Parent PLUS loans

If you believe refinancing your Parent PLUS loans isn’t the right move for you, or you’re having trouble qualifying, consider the alternatives below.

• 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.

Recap of lenders that refinance Parent PLUS loans

Lender	Our rating
SoFi	4.9/5
Earnest	4.8/5
ELFI	4.8/5
Citizens Bank	4.1/5