Parent Student Loans

Send your kids to college
Children deserve every opportunity. Parent Student Loans can help you pay for their education.

When searching for a parent loan, you can expect some serious lender benefits. Some of these benefits include:

  • No fees, period
  • Skip a payment once per year
  • Save with a 0.25% AutoPay discount
  • Inviting a cosigner is easy
  • Longer 9-month grace period
  • Make a $25 in-school payment
  • Talk to a human
  • And more…
Parent Student Loans

Current Parent Student Loans

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Parent Loans
2 Minute Application
Apply online and upload all documents on your phone
Parent Loans
Receive a Decision Fast
Lender decision in 72-hours or less
Parent Loans
Payments that Work for You
Choose a payment plan or pay nothing while in school

Would I be a good candidate for a Parent Student Loan?

Before moving forward and filling out a loan application with one of our lenders, you may want to make sure you have completed all of these free options prior to applying for a parent loan. A few programs that you should look into would be:

If you have exhausted all of the above options, you can select one of the lenders above to work with or head over to our student loans page.

Parent Loans

Parent Student Loan FAQs

  • Can you take out parent student loans during the COVID-19 pandemic?
  • How can you compare the best private student loan lenders for parents?
  • How can I apply for a private parent student loan?
  • What are all the student loan options available to parents?
  • What are the benefits of federal parent student loans?
  • What are the drawbacks of federal parent student loans?
  • What are the advantages of private parent student loans?
  • What are the disadvantages of private parent student loans?
  • Is a parent student loan right for you?
  • What are the eligibility requirements for a parent student loan?
  • Do you have to be the student’s parent to take out a parent student loan for them?
  • How to get the best parent student loan rate?
Can you take out parent student loans during the COVID-19 pandemic?

Amidst the COVID-19 pandemic, you can still access federal and private parent loans. It’s advisable to prioritize federal loan options, filling gaps with private student loans if needed. Start by completing the FAFSA for federal loans or apply for a federal Parent PLUS Loan. When opting for private loans, explore multiple lenders to secure the best loan for your circumstances.

How can you compare the best private student loan lenders for parents?

When considering private parent student loans, keep these essential factors in mind:

  1. Interest Rate: Lower rates mean reduced long-term loan costs. Good to excellent credit is typically necessary for the best rates. Shorter repayment terms may also offer better rates.
  2. Repayment Terms: Private student loans generally offer five to 20 years for repayment. Note that some lenders may not extend longer terms to parent borrowers. Choose the shortest term you can afford to minimize interest expenses.
  3. Loan Amounts: Lenders vary in the maximum loan amounts offered. Some may allow borrowing up to your child’s cost of attendance, while others impose lower limits.
  4. Fees: Watch out for origination fees or prepayment penalties imposed by certain lenders. These can increase the overall loan cost. Credible’s partner lenders, however, do not charge application, origination, or disbursement fees.
  5. Discounts: Many lenders offer rate discounts, such as incentives for automatic payments or existing customer discounts.
  6. Cosigner Release: If you cosign your child’s loan, you share responsibility. Some lenders provide a cosigner release option, allowing you to be removed from the loan in the future. Typically, you must make a specific number of consecutive, on-time payments to qualify (usually 12 to 48, depending on the lender).
How can I apply for a private parent student loan?

To apply for a private parent student loan, follow these steps:

  1. Gather Information: Collect personal, financial, and school-related details, including your name, Social Security number, proof of income, your child’s school information, cost of attendance, and existing financial aid.
  2. Compare Lenders: Evaluate multiple lenders to find the right loan for your needs. Consider interest rates, repayment terms, fees, and eligibility requirements during your research.
  3. Complete the Application: Once you’ve selected a lender, fill out a comprehensive application and provide any necessary documentation, such as tax returns or pay stubs.
  4. Manage Payments: After loan approval, the lender will request certification from your child’s school, a process that may take a few weeks or longer. Prepare to begin making payments afterward. Consider enrolling in autopay to avoid missing payments, as many lenders offer rate discounts for borrowers who choose automatic payments.
What are all the student loan options available to parents?

As a parent of a college student, you have access to two types of student loans:

  1. Parent PLUS Loans: These federal student loans, known as Direct PLUS Loans, are intended for parents covering their child’s education expenses. Parent PLUS Loans require a credit check and typically carry higher interest rates compared to other federal loans.
  2. Private Student Loans: Offered by private lenders, including online lenders, traditional banks, and credit unions, private student loans provide an alternative option. Some lenders even offer private loans specifically tailored for parents. If you have excellent credit, you may qualify for a lower interest rate on a private loan compared to a Parent PLUS Loan.
What are the benefits of federal parent student loans?

Here are some key benefits to consider:

  1. Fixed Interest Rates: Parent PLUS Loans offer fixed interest rates, ensuring consistent payments throughout the loan term.
  2. Higher Loan Amounts: These loans may cover up to the total cost of attendance for your child’s school, subtracting any other financial aid they’ve received.
  3. Federal Protections: Parent PLUS Loans come with federal benefits. For instance, by consolidating your PLUS Loan into a Direct Consolidation Loan, you can qualify for an income-driven repayment (IDR) plan. Additionally, access to student loan forgiveness programs and other protections is available.
What are the drawbacks of federal parent student loans?

Federal student loans, including Parent PLUS Loans, have a few important considerations to keep in mind:

  1. Credit Check Requirement: Unlike other federal loans, eligibility for a PLUS Loan entails passing a credit check. Adverse credit history, such as defaults or bankruptcies within the past five years, can disqualify you. In such cases, a creditworthy individual may need to endorse the loan, similar to cosigning.
  2. Higher Interest Rates and Fees: PLUS Loans generally have higher interest rates compared to most other federal loans. Additionally, they include a disbursement fee, reducing the actual loan amount. For the 2021-2022 academic year, the PLUS Loan disbursement fee stands at 4.228%, significantly higher than that of Direct Subsidized or Unsubsidized Loans.
  3. No Grace Period: Parent PLUS Loans do not offer a grace period. Repayment begins immediately after the loan disbursement. However, you may be able to defer payments if your child is enrolled at least half-time and for six months after your child leaves school or drops below half-time enrollment.
What are the advantages of private parent student loans?

Here are a few potential advantages:

  1. No Application Deadline: Private student loans allow you to apply at any time, without being limited by application deadlines like federal loans.
  2. Lower Interest Rates: With excellent credit, you may qualify for lower interest rates on private loans compared to Parent PLUS Loans.
  3. Variable Rates Available: Unlike federal loans, many private student loans offer variable-rate options. While variable rates can fluctuate based on market conditions, choosing this option may be beneficial if you plan to repay the loan quickly before the rate changes.
What are the disadvantages of private parent student loans?

When considering private student loans for parents, it’s important to be aware of potential drawbacks:

  1. Limited Options for Poor or Fair Credit: Private student loans typically require good to excellent credit for approval. If your credit is poor or fair, you may face challenges in qualifying for a private loan.
  2. Absence of Federal Protections: Private loans lack the benefits and protections provided by federal loans. You won’t have access to federal loan programs, such as income-driven repayment plans or graduated repayment options.
  3. Limited Repayment Options: Private loans offer fewer repayment options compared to federal loans. Signing up for income-driven repayment (IDR) plans or graduated repayment plans may not be available with private loans.

When opting for a private parent loan, remember to explore multiple lenders to find the loan that best suits your needs.

Is a parent student loan right for you?

While a parent student loan can be a suitable choice in certain situations, it may not be the right option for everyone. Here are some essential considerations to bear in mind as you assess your options:

  1. Credit History: Qualifying for a Parent PLUS Loan or private student loan may be challenging if you have a poor credit history. Moreover, opting for a private loan with less favorable credit could result in a higher interest rate, leading to increased interest costs over time.
  2. Loan Responsibility: Taking out a parent loan means assuming full responsibility for repayment. If you prefer not to be solely liable, you could consider cosigning a private student loan in your child’s name. However, cosigning still holds you accountable if your child fails to make payments.
What are the eligibility requirements for a parent student loan?

The requirements for obtaining a parent student loan depend on the type of loan you select. Here’s an overview of the requirements for federal and private parent student loans:

Federal Parent Student Loans:

  1. Residency: You must be a U.S. citizen or eligible non-citizen.
  2. Dependent Student: You must be the biological, adoptive, or in some cases, stepparent of a dependent student enrolled at least half-time in an eligible school.
  3. Credit Check: A credit check is required, and if you have an adverse credit history, you will need an endorser with good credit to qualify.

Private Parent Student Loans:

  1. Good Credit: Most lenders require good to excellent credit, typically considered a credit score of 700 or higher. Loans for bad credit may be available but often carry higher interest rates.
  2. Verifiable Income: Lenders may have minimum income requirements and generally require proof of income.
  3. Debt-to-Income Ratio: Lenders prefer a debt-to-income (DTI) ratio below 40%, although specific requirements may vary.

Remember, eligibility criteria for private loans can vary among lenders, so it’s essential to review each lender’s specific requirements.

Do you have to be the student’s parent to take out a parent student loan for them?

Eligibility for parent student loans depends on the loan type:

  1. Parent PLUS Loans: To qualify, you must be the biological, adoptive, or stepparent of the student. If you aren’t the biological parent or haven’t legally adopted the student, you won’t be eligible for a PLUS Loan.
  2. Private Parent Student Loans: Eligibility rules for private loans vary by lender. It’s important to check with the specific lender to determine their criteria for parent and guardian eligibility.

If you’re ineligible for a parent loan, another option is to cosign a private student loan for the student. This can help them qualify for a loan, particularly if they have poor or limited credit history, and potentially secure a lower interest rate.

Remember, as a cosigner, you assume shared responsibility for the loan, making you liable if the student fails to make payments.

How to get the best parent student loan rate?

Federal student loan rates are determined by Congress annually. For the 2021-2022 academic year, Parent PLUS Loans carry a rate of 6.28%.

On the other hand, private student loan rates are set by individual lenders based on market conditions. The rates you qualify for will be influenced by factors like your credit score and chosen repayment term.

Credible’s partner lenders offer the following rates for private student loans:

  • Fixed rates starting at: 4.42% APR
  • Variable rates starting at: 5.13% APR

To secure better rates on a private loan, consider these strategies:

  1. Maintain good credit: Lenders offer favorable rates to borrowers with good or excellent credit. Building your credit by making timely payments and reducing credit card balances can improve your eligibility for lower rates in the future.
  2. Apply with a cosigner: If your credit is poor or fair, having a creditworthy cosigner can enhance your chances of approval. Even if you qualify on your own, a cosigner may help you secure a lower interest rate.
  3. Compare lenders: Explore multiple lenders and compare their offerings to find a loan with the most favorable rate and terms for your specific needs.

Federal student loan rates are determined by Congress annually. For the 2021-2022 academic year, Parent PLUS Loans carry a rate of 6.28%.

On the other hand, private student loan rates are set by individual lenders based on market conditions. The rates you qualify for will be influenced by factors like your credit score and chosen repayment term.

Credible’s partner lenders offer the following rates for private student loans:

  • Fixed rates starting at: 4.42% APR
  • Variable rates starting at: 5.13% APR

To secure better rates on a private loan, consider these strategies:

  1. Maintain good credit: Lenders offer favorable rates to borrowers with good or excellent credit. Building your credit by making timely payments and reducing credit card balances can improve your eligibility for lower rates in the future.
  2. Apply with a cosigner: If your credit is poor or fair, having a creditworthy cosigner can enhance your chances of approval. Even if you qualify on your own, a cosigner may help you secure a lower interest rate.
  3. Compare lenders: Explore multiple lenders and compare their offerings to find a loan with the most favorable rate and terms for your specific needs.