Refinance Parent PLUS Loans

If you took out a Parent PLUS loan to help pay for your child’s education, you may be able to refinance it to lower the interest rate and, if you wish, transfer it to your child.

Below, you’ll find a few lenders who refinance Parent PLUS loans, each with varying interest rates, terms, and benefits. You’ll also find some useful information that can help you make the best decision for your needs.

On this page:

• Lenders That Refinance Parent PLUS Loans
• How to Refinance a Parent PLUS Loan
• Can You Transfer a Parent PLUS Loan to a Child?
• Alternative Repayment Options

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Refinance Parent PLUS Loans

• Get a quick rate estimate in 2 minutes
• Rates starting at earnest-refi-10-alllow% APR

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• Long forbearance options
• Option to transfer Parent PLUS loan to child

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4 Lenders That Refinance Parent PLUS Loans

Here are four companies that offer Parent PLUS loan refinancing:

• Earnest
• Laurel Road
• SoFi
• CommonBond

Earnest

Earnest allows potential borrowers to receive an estimated rate through a soft credit pull. A hard credit pull is required once you submit an application.

Interest Rates and Terms

Earnest offers both fixed or variable rates with variable APRs starting at 2.47% if the borrower is enrolled in autopay, and fixed APRs starting at 3.89% with autopay. There is a lot of flexibility in loan terms, and options go from 5 up to 20 years.

There are no origination, application, or prepayment fees.

Eligibility

Earnest strives to offer a unique application and approval process for people who want to refinance Parent PLUS loans. They don’t just look at the credit score of the applicant, but they try to account for a wide variety of factors. There are no set income requirements, either.

To be eligible for refinancing your Parent PLUS loan, the student must have completed their degree.

Can You Transfer the Loan to Your Child?

Earnest does not offer this option.

Laurel Road

Laurel Road allows you to check your rate with a soft credit pull, which will not affect your credit score. A hard credit pull will be required once you submit an application.

Interest Rates and Terms

Variable interest rates from Laurel Road are currently anywhere from 2.80% APR to 6.38% APR with autopay. The fixed rates range from 3.50% APR to 7.02% APR, also with autopay enrollment.

Repayment term options are 5, 7, 10, 15 and 20 years. A 0.25% reduction in interest rate is available with automatic payments made via ACH.

Eligibility

For parents to be eligible for student loan refinancing through Laurel Road, their child must have a bachelor’s degree, must have graduated, and must be working.

Eligible areas of study include MBA, law, post-residency medical or dental, physician assistant, advanced degree nursing, pharmacist, engineering, or Ph.D.

Can You Transfer the Loan to a Child with This Lender?

Yes, Laurel Road offers the option for parents to transfer a Parent PLUS loan to a child.

SoFi

SoFi is one of the biggest lenders advertising Parent PLUS loan refinancing. Along with the opportunity to save, there are other perks for going with SoFi student loan refinancing.

Interest Rates and Terms

SoFi advertises fixed APRs that start at 3.899% for refinancing a Parent PLUS loan. There are variable rates as low as 2.790% APR. Both of these rates are available when borrowers enroll in automatic payments. There are no prepayment penalties, and there’s the opportunity to get a 0.125% rate discount if you’re a SoFi member.

Eligibility

To be eligible, borrowers can submit online preapproval information and then select the loan plan they’re interested in. The lowest rates are reserved for borrowers with a strong credit history.

To be eligible, the student must have completed an undergraduate or graduate degree program. SoFi Parent PLUS student loan refinancing is available for undergraduate and graduate loans.

Can You Transfer the Loan to Your Child?

SoFi allows you to transfer a Parent PLUS loan to a child through refinancing.

CommonBond

CommonBond provides customizable student loan refinancing options and low rates for people who hold a Parent PLUS loan. You can receive an estimated rate through a soft credit pull as well.

Interest Rates and Terms

Their variable rates for refinancing a Parent PLUS loan range from 2.72% APR to 7.25% APR. For a fixed-rate loan, the APR varies from 3.20% to 7.25%. CommonBond also offers a hybrid loan, with rates ranging from 4.30% APR to 6.31% APR.

The terms for the fixed and variable rate refinance loans are anywhere from 5 to 20 years. For the hybrid loan, the repayment term is 10 years.

There are forbearance options of up to 24 months, no prepayment penalties, and no origination fees.

Eligibility

Eligibility requirements to refinance through CommonBond are similar to other lenders. The child must have completed school and should have received a minimum of a bachelor’s degree from an eligible school. For students with a bachelor’s degree, it must be at least 24 months since they graduated in order for the loan to be transferred to them through refinance.

To transfer the loan to the student, they also need to meet certain income and credit requirements or have a qualified cosigner.

Can You Transfer the Loan to a Child With This Lender?

CommonBond allows loan holders to refinance student loans in the name of their child if the child meets eligibility requirements.

How to Refinance a Parent PLUS Loan

Parent PLUS loans currently have interest rates of 7.08%, but have ranged between 6.31% and 7.90% over the years. PLUS loans typically have the highest interest rate of all federal student loans. Because of this, it may make sense to refinance your parent PLUS loan with a private lender to get a lower rate.

Private lenders require you to have a good credit score and steady income to be eligible for refinancing. If you have both, then the following steps can help you get started:

1. Compare rates: Compare your current interest rate to the estimated ranges provided by each student loan refinancing company. You can start with the companies listed on this page. If a lender allows you to pre-qualify with a soft credit check, you can do so to get a better idea of what your rate would be. To complete your comparison, you can use our student loan refinance calculator to compare savings.
2. Check the eligibility requirements: Once you find a lender that offers you a lower interest rate, check the eligibility requirements to make sure you check off all the boxes.
3. Apply for a new loan: If the lender offers you a lower interest rate, you are ready to submit your application. If you’re approved following a hard credit check, your existing Parent PLUS loans will be paid off and you will be responsible for making monthly payments to the new lender.

Can You Transfer a Parent PLUS Loan to a Child?

When refinancing Parent PLUS loans, you may have the option to transfer the loan to your child depending on the lender. If you want your child to take on responsibility for the loan, make sure the lender you refinance with allows you to do so.

The lenders in the table below allow you to transfer a Parent PLUS loan to a child.

How to Transfer Parent PLUS Loans to a Child

You can’t transfer a Parent PLUS loan to your child through the Department of Education. However, you can transfer it by refinancing with a private lender.

Your child will need to apply and have a good credit score and steady income. The application process usually requires the child to have earned at least a bachelor’s degree or higher.

Benefits of Transferring to a Child

The benefits of transferring a federal Parent PLUS loan to a child are that you are no longer responsible for making the monthly payment. Additionally, the new loan can have a lower interest rate than the original loan, and it’s entirely in the child’s name.

Negatives of Transferring to a Child

In general, if the Parent PLUS loan is refinanced it can cause you to lose federal loan program protections including the Public Service Loan Forgiveness option and income-driven repayment plans. Also, the child will bear the responsibility of the loan and that could create a financial or legal burden if they can’t meet their monthly payment.

Alternative Repayment Options

If you hold a Parent PLUS loan, there are alternatives to the traditional student loan refinancing options named above. These include:

• HELOC: This stands for home equity line of credit. You’re basically using the equity in your home to pay off student loan debt. There are risks to this option, including the fact that if you default on this loan you could lose your home. Learn more about this process with our page on using a HELOC to pay off student loans.
• Unsecured Line of Credit: An unsecured line of credit doesn’t require you to use your home or anything else as collateral. You can repay loans, but this option is usually only available to the most creditworthy borrowers. Check our Best Personal Lines of Credit page to see our top picks.