Best Parent Loans for College: Parent PLUS and Private
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Parents planning to borrow for a student's education have two options: Parent PLUS loans, which are federal student loans issued to parents, and private loans offered by banks and online lenders.
Here are our picks for the best parent student loans and information on financing your child's education.
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Why trust NerdWallet
- 35+ student loans lenders reviewed and rated by our team of experts.
- 10+ years of combined experience covering higher education and student loans.
- Objective, comprehensive star-rating system assessing 43 categories and 40+ data points across student loan origination and student loan refinance.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Best Parent Loans for College: Parent PLUS and Private
- Best Parent Loans for College: Parent PLUS and Private
- What is a federal direct PLUS loan for parents?
- How do parent PLUS loans work?
- What is the interest rate for parent PLUS loans?
- What is a private student loan?
- What is better: A parent PLUS loan or private loan?
- How to apply for parent PLUS loan
- How to apply for private student loans
- Are parents responsible for student loans?
- What are repayment options for parent PLUS loans?
- Are parent PLUS loans eligible for student loan forgiveness?
- Can a parent PLUS loan be transferred to the student?
- Recap
- About the author
Lender | NerdWallet Rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
5.0 /5 | None | 9.08-9.08% | N/A | ||
5.0 /5 | Mid-600s | 3.47-17.99% | 3.47-17.99% | See Offers on College Ave's website | |
4.0 /5 | 660 | 5.35-15.86% | 5.55-15.26% |
Our pick for
Federal loan option for parents
Federal parent PLUS loans have fixed interest rates and minimal fees. Parent borrowers must not have any adverse credit history to qualify.
- Key facts
Federal PLUS loans are available to parents of undergrads as well as graduate students. They are best for parents who may need the safety net they offer, like income-contingent repayment after consolidation, and for grad students who have hit limits on lower-interest unsubsidized loans.
Pros- More flexible repayment options for struggling borrowers compared with private lenders.
- All borrowers who attend a school authorized to receive federal aid can qualify.
Cons- May have higher interest rates compared with private lenders.
- You pay an origination fee.
- You can’t see if you’ll qualify without a hard credit check.
Qualifications- Parent PLUS loan borrowers must not have adverse credit history.
- Borrowers with adverse credit history can still receive a parent PLUS loan by enlisting a co-signer without adverse credit history or documenting extenuating circumstances for their credit history.
- Loan amounts: Total cost of attendance minus other financial aid.
Available Term Lengths10 to 25 years once repayment begins, depending on the repayment plan.
Our pick for
Private parent loans for college
College Ave Parent Student Loan
Mid-600s
3.47-17.99%
3.47-17.99%
- Key facts
Best for parents who want to help manage some of their student's spending.
Pros- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- You can choose your monthly payment while the student is in school, provided it covers at least the interest.
Cons- No co-signer option.
- Estate is still responsible for the loan if the parent borrower dies.
Qualifications- Typical credit score of approved borrowers: Mid-700s.
- Minimum income: $70,000 per year.
- Loan amounts: $1,000 up to school-certified cost of attendance.
Available Term LengthsBetween 5 and 15 years.DisclaimerCollege Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1)All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2)As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3)This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 3/3/2025. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
Ascent Parent Loan
660
5.35-15.86%
5.55-15.26%
- Key factsBest for parents who want to support a student who is not enrolled in school at least half-time.Pros
- Offers loans to parents with students who are enrolled less than half-time.
- Allows bi-weekly payments via autopay.
Cons- No co-signer option.
- The parent or borrower’s estate still has to cover loan payments if the parent borrower dies.
QualificationsDisclaimer*Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations, terms and conditions may apply for Ascent's Terms and Conditions please visit: AscentFunding.com/Ts&Cs. Annual Percentage Rates (APRs) displayed above are effective as of 6/1/2025 and reflect an Automatic Payment Discount of 0.25% on credit-based college student loans submitted prior to 6/1/2025, a 0.5% discount for on credit-based college student loans submitted on or after 6/1/2025 and a 1.00% discount on outcomes-based loans when you enroll in automatic payments. Loans subject to individual approval, restrictions and conditions apply. Loan features and information advertised are intended for college student loans and are subject to change at any time. For more information, see repayment examples or review the Ascent Student Loans Terms and Conditions. The final amount approved depends on the borrower’s credit history, verifiable cost of attendance as certified by an eligible school and is subject to credit approval and verification of application information. Lowest interest rates require full principal and interest (Immediate) payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the examples above, based on the amount of time you spend in school and any grace period you have before repayment begins. Variable rates may increase after consummation.1% Cash Back Graduation Reward subject to terms and conditions. For details on Ascent borrower benefits, visit AscentFunding.com/BorrowerBenefits. Ascent applicants and borrowers that agree to the AscentUP Terms of Service and Privacy Policy, as well as students associated with an Ascent parent loan application, have access to the AscentUP platform.
SoFi Parent Loan
Mid-600s
5.49-16.85%
5.82-16.85%
- Key factsBest for flexible repayment options and no fees options.Pros
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Multiple in-school repayment options available, including interest-only and flat-fee, and deferred for undergrad and grad students.
Cons- Does not offer bi-weekly payments via autopay.
QualificationsAvailable Term Lengths5, 7, 10, 15 years
Earnest Parent Loan
650
4.45-14.90%
4.99-15.30%
- Key factsAn option for parent loan borrowers who want flexible repayment.Pros
- Option to skip one payment every 12 months.
- No late fees.
- Nine-month grace period is longer than most lenders offer.
Cons- Loans aren't available in Nevada.
Qualifications- Typical credit score of approved borrowers: 758.
- Minimum income: $35,000.
- Loan amounts: $1,000 up to your total cost of attendance.
Available Term Lengths5, 7, 10, 12 or 15 yearsDisclaimerEarnest Private Student Loans are made by One American Bank, Member FDIC, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107. Earnest loans are serviced by Earnest Operations LLC, 300 Frank H. Ogawa Plaza, Suite 340, Oakland 94612. NMLS #1204917, with support from Higher Education Loan Authority of the State of Missouri (MOHELA) (NMLS# 1442770) One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America. © 2025 Earnest LLC. All rights reserved.
Advantage Education Loan Parent Loan
Does not disclose
5.29-8.04%
N/A
- Key factsBest for parents who don’t want to co-sign with their child.Pros
- Forbearance of 24 months is twice as long as most lenders.
- Loans are available for students enrolled less than half time.
Cons- Fewer repayment terms than other lenders offer.
- Estate is still responsible for the loan if the parent borrower dies.
- You can't see what rate you’ll get without a hard credit check.
Qualifications- Typical credit score of approved borrowers: Does not disclose.
- Minimum income: Does not disclose.
- Loan amounts: Minimum $1,000. Maximum depends on creditworthiness and debt-to-income ratio.
Available Term Lengths10 years
- Key factsBest for parents who don’t want to transfer the loan to their child.Pros
- You can pre-qualify and check what rate you’ll get without a hard credit check.
- The estate is not held responsible for repaying the loan if the parent borrower dies or is totally and permanently disabled.
Cons- Parent loans cannot be transferred to their children.
Qualifications
Our pick for
Parent college loans for Texans
- Key factsBrazos is best for parent loan borrowers who live in Texas and want to finance undergraduate or graduate education for their children.Pros
- Borrowers can finance undergraduate and graduate degree programs.
- Students do not have to attend college in Texas to qualify.
Cons- Available only to parent borrowers in Texas.
Qualifications- Typical credit score of approved borrowers: N/A
- Minimum income: $60,000 for co-signer or primary borrower, or $30,000 for primary borrower if applying with a co-signer.
- Loan amounts: $10,000 up to $400,000.
Available Term Lengths 5, 7, 10, 15, or 20 yearsDisclaimerRates as of 06/01/2025. Lowest variable rate assumes a current Thirty-day Average Secured Overnight Financing Rate (SOFR) of % plus a 2.03% margin minus the 0.25% Auto-Pay Discount. If approved for a Brazos loan, the fixed or variable interest rate offered will depend on your creditworthiness, the term of the loan and other factors, and will be within the ranges of rates listed above. For the Brazos variable rate loan, the Thirty-day Average SOFR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the SOFR index increases. Auto-Pay Discount. The interest rate in effect will be reduced by 0.25% if either the borrower or the cosigner authorizes automated (ACH) payments from any bank account. This ACH interest rate reduction, referred to as the Auto-Pay Discount, applies only when full principal and interest payments are automatically drafted from a bank account. This interest rate reduction will not continue to apply during periods of approved forbearance or deferment. The Auto-Pay Discount will terminate if the automatic bank account payments discontinue or there are any three instances of insufficient funds at any time during the term of the loan. A borrower may requalify upon reauthorization of automatic payments from a valid bank account.This means that your payment may increase, or decrease, after disbursement. The variable rate is capped and will never exceed 9.90%. The rate is expressed as an APR. Since there are no fees associated with this loan, the APR is the same as the actual interest rate for the loan. While the APR, once you proceed, may differ slightly depending upon the calculation methods and certain assumptions, the base rate and margin that you are charged will remain as stated. Auto-Pay Discount includes a .25% interest rate reduction when either the borrower or cosigner authorizes ACH payments of full principal and interest from any bank account. Certain other terms and conditions apply.
What is a federal direct PLUS loan for parents?
Federal direct PLUS loans are government loans that parents can take out to help pay for a child's college education. They have higher interest rates and fees and qualify for fewer repayment plans than federal direct loans for students.
How do parent PLUS loans work?
To be eligible for a parent PLUS loan, you’ll need to be a biological or adoptive parent of a dependent undergraduate student who is enrolled at least half-time in school. There are exceptions for stepparents, but grandparents do not qualify — even if they’ve raised the student — unless they have legally adopted the dependent student.
Are parent PLUS loans federal or private?
Parent PLUS loans are provided by the U.S. Department of Education, which makes them federal student loans. In contrast, private loans are given by entities such as banks and credit unions.
Can I get a parent PLUS loan with bad credit?
You will undergo a credit check when applying to parent PLUS loans. However, if you have adverse credit history there are options. You can find an endorser with good credit, which is a person who agrees to repay the loan if you do not. The child you are seeking funding for cannot be your endorser.
A second option is to provide documentation outlining extenuating circumstances for why you have adverse credit history. For either option, you’ll need to complete required credit counseling.
What is the interest rate for parent PLUS loans?
The interest rate for federal direct PLUS loans is 9.08% for the 2024-25 academic year. There is also an origination fee of 4.228% of the loan amount, which is deducted from each loan disbursement.
What is a private student loan?
Private student loans are provided by nonfederal lenders. This includes banks, credit unions, state agencies, among others. Terms and conditions for private student loans are set by each lender, whereas federal student loan terms are determined by law. Private student loans are often more expensive than federal loans.
» COMPARE: Best private student loans for college
What is better: A parent PLUS loan or private loan?
To help you assess if a parent PLUS loan or private loan is right for you, consider your current financial situation and employment outlook.
If your finances are secure and you expect your income to remain steady, you may qualify for a low rate on a private student loan. These loans also have no origination fees.
If your finances are solid, but you foresee future gaps in your income, a loan with relevant safety nets may be best. Parent PLUS loans offer an income-contingent repayment option and extend death and disability discharges to parent borrowers. Only some private loans offer income-based repayment or the death and disability discharge.
If you're building your finances and don't meet private loan requirements, a PLUS loan — which has looser credit requirements — is likely best for you.
Before taking parent student loans, make sure that:
Your child has maxed out federal student loan options.
You’re saving enough for retirement.
You’re managing high-interest debt like credit cards.
Assuming your child has exhausted federal student loan options and your finances are sound, consider a parent PLUS loan if:
You work for the government or a 501(c)(3) nonprofit and want to pursue Public Service Loan Forgiveness.
You may not have steady income for the duration of the loan term.
Your credit isn't strong enough to qualify for a lower rate with a private parent loan.
» MORE: Estimate monthly payments using a parent PLUS loan calculator
How to apply for parent PLUS loan
Plan to spend at least 20 minutes completing the parent PLUS loan application. It must be completed in a single session. However, you may need more time to gather up required documents and to complete the FAFSA first.
Fill out the Free Application for Federal Student Aid. To apply for a PLUS loan, fill out the FAFSA with your child. NerdWallet's FAFSA guide can help.
Check your credit. If you have a security freeze on your credit file, remove it from each credit bureau. Review your credit report for any errors, and do what you can to build your credit before you apply.
Complete the direct PLUS loan application for parents. You’ll need your verified FSA ID, your requested loan amount, school name, student information, personal information and employer’s information.
How to apply for private student loans
You can apply for a private parent student loan directly with the lender.
Shop around. Before signing up for a private parent loan, shop around to find the lowest student loan interest rate you qualify for. Also look for information on origination, prepayment or late fees, and how easily you can reach the lender if you have an issue.
Consider pre-qualifying. Some lenders have a pre-qualification process that allows you to see a personalized rate before the lender does a hard credit pull. This can give you an idea of which loans you may be eligible to receive before making any commitments.
Choose a fixed rate. Fixed interest rates do not change over time and are a better option over variable rates that may fluctuate throughout the lifespan of the loan.
Are parents responsible for student loans?
Parents are responsible for loan repayments. Make sure you and your child work out clear plans for repayment before taking a parent student loan since you are legally responsible for the debt.
What are repayment options for parent PLUS loans?
Parent PLUS borrowers have several repayment options. The first is the standard repayment plan, which is the one you’ll automatically get unless you specify otherwise. With the standard repayment plan, your payments are fixed for a term of up to 10 years.
The other key repayment option is the Income-Contingent Repayment (ICR) plan. Under this plan, payments are capped at 20% of your discretionary income. The repayment term is extended to up to 25 years, at which point any remaining debt is forgiven.
Are parent PLUS loans eligible for student loan forgiveness?
You may be eligible for student loan forgiveness under certain situations. For example, you could seek Public Service Loan Forgiveness, but you would need to first consolidate your loan into a direct consolidation loan and then enroll in an Income Contingent Repayment Plan (ICR).
Can a parent PLUS loan be transferred to the student?
A parent PLUS loan cannot be transferred from a parent to student. The only way to transfer parent loans is to have your child refinance the loan with a private lender in their name.
Last updated on June 2, 2025
NerdWallet's Best Parent Loans for College: Parent PLUS and Private
- Federal Parent PLUS Loan: Best for Federal loan option for parents
- College Ave Parent Student Loan: Best for Private parent loans for college
- Ascent Parent Loan: Best for Private parent loans for college
- SoFi Parent Loan: Best for Private parent loans for college
- Brazos Parent Loan: Best for Parent college loans for Texans
- Earnest Parent Loan: Best for Private parent loans for college
- Advantage Education Loan Parent Loan: Best for Private parent loans for college
- ISL Parent Loan: Best for Private parent loans for college
