Best Parent Loans for College

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Best for…	Variable APR	Fixed APR	Min. credit score
Federal benefits	Not available	8.05%	Credit check only
Multiyear approval	6.64% to 9.87% with loyalty and autopay discounts	6.34% to 9.56% with loyalty and autopay discounts	700
Convenient cash	5.59% to 16.99% with autopay discount	4.43% to 16.99% with autopay discount	660
Cosigned loans	3.37% to 12.99% with auto debit discount	5.49% to 13.87% with auto debit discount	Not disclosed
Transparent application process	4.98% to 12.79%	Starting at 5.04%	680
Private borrower protections	Not available	5.74% with autopay discount	680
Competitive rates	Not available	3.85% to 7.91%	660
Member perks	6.07% to 12.88% with autopay discount	6.25% to 13.73% with autopay discount	Not disclosed
Nontraditional students	Not available	4.49% to 8.04% with autopay discount	Not disclosed
Indiana residents and students	5.86% to 9.51% with autopay discount	4.37% to 7.62% with autopay discount	670

Read more about how we chose the best parent loans.

10 best parent loans for college

The federal government and many private lenders offer college loans for parents, allowing them to cover some or all of their children’s educational costs. These loans can help fill remaining gaps after exhausting other forms of funding, such as your family’s savings, a 529 plan, scholarships and grants, and your child’s own student loans.

Parent PLUS loan: Best for federal benefits

Loan amounts

Minimum: None

Maximum: Up to the cost of attendance, minus other financial aid received

Variable APR Not available

Fixed APR 8.05%

Terms

Standard plan: 10 years

Extended and Graduated plans: 25 years

Income-driven repayment: Varies by program

Origination fee 4.228% for loans disbursed between Oct.1, 2021 to Oct. 1, 2024

Minimum credit score Only requirement is lack of adverse credit event (see below)

Pros Cons

Access to federal loan perks, such as forgiveness options and income-driven repayment

Borrow as much as you need
Includes origination fee

Only available to biological or adoptive parents — other relatives (including legal guardians) are ineligible

Pros	Cons
Access to federal loan perks, such as forgiveness options and income-driven repayment Borrow as much as you need	Includes origination fee Only available to biological or adoptive parents — other relatives (including legal guardians) are ineligible

Key features A major benefit for these and other Federal Student Loan are the special government loan perks, such as access to major student loan forgiveness programs (if you meet all criteria) and generous income-driven repayment plans (if you switch to a federal consolidation loan first). Note that the Department of Education doesn’t set annual borrowing limits for Parent PLUS loans, but you still can’t borrow more than the student’s cost of attendance, minus other aid received.

Eligibility requirements

You must be the biological or adoptive parent of a dependent student enrolled at least half-time in an eligible undergraduate school. Borrowers with adverse credit can apply with an endorser (can’t be your child) or document the extenuating circumstances behind your recent credit history.

Citizens Bank: Best for multiyear approval

Loan amounts

Minimum: $1,000

Maximum: $350,000 (depending on type of degree)

Variable APR 6.64% to 9.87% with loyalty and autopay discounts

Fixed APR 6.34% to 9.56% with loyalty and autopay discounts

Terms 5 or 10 years

Origination fee No origination, application or prepayment fees

Minimum credit score 700

Pros Cons

Multiyear approval simplifies future borrowing

Relatively high 0.50 point interest-rate deduction after autopay and loyalty discounts

Various in-school repayment options
Checking rates results in a hard credit check

Deferment and forbearance is on case-by-case basis

Cosigner release takes three years

Pros	Cons
Multiyear approval simplifies future borrowing Relatively high 0.50 point interest-rate deduction after autopay and loyalty discounts Various in-school repayment options	Checking rates results in a hard credit check Deferment and forbearance is on case-by-case basis Cosigner release takes three years

Key features Citizens Bank stands out for its multiyear approval, which saves time and effort for future borrowing. Depending on the type of degree, you can borrow up to $350,000 with no hidden fees, locking in funds for multiple years all at once. Like with many other lenders, you can get a 0.25% rate discount when you automate your student loan payments, but you can also access additional discounts if you have a qualifying Citizens Bank account. You can choose between an immediate, interest-only or deferred payment plan.

Eligibility requirements

U.S. citizens with dependent students enrolled at least half-time in a degree-earning program at an eligible institution. Borrower must pass a credit check or add a creditworthy cosigner. International students can apply with an eligible U.S. citizen as a cosigner.

College Ave: Best for convenient cash

Loan amounts

Minimum:

Maximum: Up to 100% of the school-certified cost of attendance

Variable APR 5.59% to 16.99% with autopay discount

Fixed APR 4.43% to 16.99% with autopay discount

Terms 5 to 15 years

Origination fee No origination, application or prepayment fees

Minimum credit score 660

Pros Cons

Parent loans available to any relative or guardian, not just parents

A large selection of repayment options

Getting rate offers doesn’t impact your credit
Long cosigner-release policy

Late payment fee of 5% or $25 (whichever is less)

Pros	Cons
Parent loans available to any relative or guardian, not just parents A large selection of repayment options Getting rate offers doesn’t impact your credit	Long cosigner-release policy Late payment fee of 5% or $25 (whichever is less)

Key features While some lenders focus just on costs directly payable to your school, a College Ave parent loan offers some extra flexibility. For instance, you can choose between 11 repayment terms, including the option to make in-school payments to reduce the amount of accrued interest.

Eligibility requirements

Available for parents, grandparents, guardians or any family member who wishes to help pay for a child’s college education. Approval is based on the borrower’s credit and income review.

Sallie Mae: Best for cosigned loans

Loan amounts

Minimum: $1,000

Maximum: Up to the cost of attendance, minus other aid received

Variable APR 3.37% to 12.99% with auto debit discount

Fixed APR 5.49% to 13.87% with auto debit discount

Terms 10 to 15 years

Origination fee None

Minimum credit score Not disclosed

Pros Cons

Free FICO Score updates

Eligibility for students enrolled less than half time

Short time to cosigner release (12 months)
Credit score requirements not explicit

The student is still the primary borrower (as opposed to a regular parent loans)

Pros	Cons
Free FICO Score updates Eligibility for students enrolled less than half time Short time to cosigner release (12 months)	Credit score requirements not explicit The student is still the primary borrower (as opposed to a regular parent loans)

Key features Sallie Mae offers its “Smart Option Student Loan,” which is really more of a student loan with a parent cosigner, rather than a traditional parent loan. Geared toward undergraduate students with a creditworthy parent, grandparent or family friend, this loan offers competitive interest rates, flexible terms and free quarterly FICO credit score updates. You can choose immediate, interest-only or fixed ($25/month) payments or defer loan payments until six months after graduation.

Eligibility requirements

The parent or guardian applies as a cosigner and shares responsibility with the student. Students must be enrolled in a participating school, although unlike with most lenders, below half-time enrollment is acceptable. Cosigner release is available after 12 months of regular payments if you meet the income and credit score requirements.

Read our review

Education Loan Finance (ELFI): Best for transparent application process

Loan amounts

Minimum: $1,000

Maximum: Up to 100% cost of attendance, minus other aid received

Variable APR 4.98% to 12.79%

Fixed APR Starting at 5.04%

Terms 5, 7 and 10 years

Origination fee None

Minimum credit score 680

Pros Cons

Get personalized rate offer within minutes

Every applicant receives a Student Loan Advisor to help guide you along the way

Earn a $400 bonus if a friend refinances with ELFI
Only available for family members

Late fee of 5% or $50 (whichever is less)

Forbearance and forgiveness support isn’t clearly defined

Pros	Cons
Get personalized rate offer within minutes Every applicant receives a Student Loan Advisor to help guide you along the way Earn a $400 bonus if a friend refinances with ELFI	Only available for family members Late fee of 5% or $50 (whichever is less) Forbearance and forgiveness support isn’t clearly defined

Key features Education Loan Finance (ELFI) offers parent loans for school costs, with competitive rates, flexible terms and no fees. The application process is speedy and efficient, and you can view personalized rate offers within minutes without damaging your credit score. You can choose between immediate, interest-only or fixed ($25/month) payments or defer payments until six months after your child graduates.

Eligibility requirements

Both the borrower and student must be U.S. citizens or residents. A parent, guardian or other family members can apply if they shared a home with the student for more than half of the year. The student must be enrolled at least half-time, and the borrower or cosigner must meet financial requirements.

Rhode Island Student Loan Authority (RISLA): Best for private borrower protections

Loan amounts

Minimum: $0

Maximum: $0 (can’t exceed the cost of attendance minus other aid received)

Variable APR Not available

Fixed APR 5.74% with autopay discount

Terms 10 years

Origination fee None

Minimum credit score 680

Pros Cons

Income-based repayment plan (forgiveness after 25 years)

Nurses pay zero interest (up to four years)

Loans available for non-matriculating students
Standard repayment term only (10 years)

Parent loan has higher interest rate than RISLA’s student loans

No grace period available

Pros	Cons
Income-based repayment plan (forgiveness after 25 years) Nurses pay zero interest (up to four years) Loans available for non-matriculating students	Standard repayment term only (10 years) Parent loan has higher interest rate than RISLA’s student loans No grace period available

Key features Rhode Island Student Loan Authority (Risla) offers extensive borrower protections to help protect against life’s unexpected events. With a RISLA parent loan, you can apply for income-based repayment plans and forbearance, military benefits and even forgiveness for unfortunate incidents. Such perks are rare for private student loans. In addition, the RISLA multiyear program allows you to easily request funds each year as long as your credit score, income and other qualifying factors remain the same.

Eligibility requirements

The student and borrower must be U.S. citizens or residents, with the student enrolled in an eligible degree-granting school. All borrowers must meet income and credit score criteria.

ISL Education Lending: Best for competitive rates

Loan amounts

Minimum: Not specified

Maximum: Up to the cost of attendance minus other aid received

Variable APR Not available

Fixed APR 3.85% to 7.91%

Terms 10 or 15 years

Origination fee None

Minimum credit score 660

Pros Cons

Low, fixed rates with no hidden fees

Non-parents can apply, such as a grandparent or family friend

No origination, late or prepayment fees
Not available for Maine residents

Unclear forbearance policy

Offers only two loan terms

Pros	Cons
Low, fixed rates with no hidden fees Non-parents can apply, such as a grandparent or family friend No origination, late or prepayment fees	Not available for Maine residents Unclear forbearance policy Offers only two loan terms

Key features Available to family members and friends, the College Family Loan from ISL Education Lending can cover up to 100% of the cost of attendance, with competitive rates, no origination fees and cosigner release after 24 months. You can add a creditworthy cosigner to access the lowest rates, but the students themselves can’t cosign this loan. ISL Education Lending also offers cosigned and non-cosigned undergraduate student loans with low, competitive interest rates.

Eligibility requirements

Available to U.S. citizens and residents (except for Maine residents). Students must be enrolled at least half-time in an eligible school and maintain satisfactory academic progress. The borrower must meet specific financial criteria and anyone can apply — including other family members and close friends.

SoFi: Best for member perks

SoFi logo

Loan amounts

Minimum: $1,000

Maximum: Up to cost of attendance minus other aid received

Variable APR 6.07% to 12.88% with autopay discount

Fixed APR 6.25% to 13.73% with autopay discount

Terms 5, 7, 10 or 15 years

Origination fee None

Minimum credit score Not disclosed

Pros Cons

An extra 0.25 percentage point discount for families supporting multiple kids in college

Earn points for using the SoFi app, setting up direct deposit, checking your credit score and more

Unemployment protection for unexpected circumstances
Lack of transparency about credit score requirements

No loan option for part-time or alternative degree-seeking students

Higher starting interest rates compared to SoFi’s undergraduate loans

Pros	Cons
An extra 0.25 percentage point discount for families supporting multiple kids in college Earn points for using the SoFi app, setting up direct deposit, checking your credit score and more Unemployment protection for unexpected circumstances	Lack of transparency about credit score requirements No loan option for part-time or alternative degree-seeking students Higher starting interest rates compared to SoFi’s undergraduate loans

Key features Sofi provides some great member perks. With a parent loan, you can rack up SoFi Member Rewards for various actions, redeeming points for cash or paying down your loan.

All SoFi members gain access to free career services, networking events, financial advisors and more. You can also qualify for exclusive discounts if you take out subsequent loans or qualify for a family discount. You can check your rates without hurting your credit score.

Eligibility requirements

Students must be enrolled at least half-time in a degree-seeking program at an eligible school. Anyone who meets the credit and financial requirements can apply, as this loan isn’t limited to parents or family members.

Read our review

Advantage Education Loan: Best for nontraditional students

Loan amounts

Minimum:$1,000

Maximum: Up to 100% of school-certified expenses

Variable APR Not available

Fixed APR 4.49% to 8.04% with autopay discount

Terms 10 or 15 years

Origination fee None

Minimum credit score Not disclosed

Pros Cons

Loan options for students attending less than half-time

You can refinance other student loans without a degree

Get rates without a hard credit check
Loans aren’t available in every state

Doesn’t disclose minimum credit score requirement

Limited repayment terms compared to other lenders

Pros	Cons
Loan options for students attending less than half-time You can refinance other student loans without a degree Get rates without a hard credit check	Loans aren’t available in every state Doesn’t disclose minimum credit score requirement Limited repayment terms compared to other lenders

Key features Part-time or non-degree-seeking students may need help securing student loan financing, especially since federal financial aid requires at least half-time enrollment. Fortunately, Advantage Education Loan provides loans to nontraditional students — as long as you agree to an immediate, in-school repayment plan. Creditworthy parents can access Advantage’s low-interest rate loans with no fees, allowing you to contribute to the full cost of your child’s school expenses.

Eligibility requirements

Borrower needs to be a parent or stepparent of an eligible student and a U.S. citizen or permanent resident. Must meet income and credit check criteria.

INvestED: Best for Indiana residents

Loan amounts

Minimum: $1,001

Maximum: Up to cost of attendance minus other aid received

Variable APR 5.86% to 9.51% with autopay discount

Fixed APR 4.37% to 7.62% with autopay discount

Terms 5, 10 or 15 years

Origination fee None

Minimum credit score 670

Pros Cons

Cosigner release after 12 consecutive on-time payments

Offers literacy events and other free resources

Only available to residents of Indiana

Proof of continuous employment for the last two years

Must have no previous private or federal student loan defaults

Pros	Cons
Cosigner release after 12 consecutive on-time payments Offers literacy events and other free resources	Only available to residents of Indiana Proof of continuous employment for the last two years Must have no previous private or federal student loan defaults

Key features An INvestED parent loan won’t appeal to everyone since the student must be an Indiana resident or attending an Indiana college or university. However, it’s an excellent way for Indiana students to access extra funds for their college career. Immediate payment plans begin 30 to 60 days after the loan’s disbursement, with forbearance and deferment options available, along with relatively quick cosigner release.

Eligibility requirements

Must be an Indiana resident, as well as citizen or permanent resident of the U.S. Borrowers and cosigners (if applicable) must have established credit history and meet income criteria.

Types of parent loans for college

You can choose between two main categories when looking to help fund your child’s education: federal Parent PLUS loans and private parent loans.

Federal Parent PLUS loan

As discussed above, the government provides loans to parents who want to help pay for a child’s higher education. Only biological or adoptive parents can apply — legal guardians, grandparents and other relatives aren’t eligible, even if they are the child’s primary caregiver.

PLUS loans have higher interest rates and fewer repayment plans than Direct federal student loans, so it’s best if your child exhausts their own federal student loan options first.

Unlike private student loans, your FICO Score doesn’t play a role in determining PLUS loan rates, amounts or terms — although you must pass a general credit check to ensure you don’t have any recent bankruptcies or delinquencies.

Note that you must fill out the Free Application for Federal Student Aid (FAFSA) with your child before completing the Parent PLUS loan application.

Private parent loans

Private lenders review your credit history and score along with your income and debt-to-income ratio to determine your creditworthiness.

Rates and terms vary from lender to lender, so it’s wise to shop around to find the best deal for your situation. Boosting your credit score or applying with a creditworthy cosigner can improve your chances of locking in the lowest rate.

Parent PLUS vs. private loan

	Parent PLUS loan	Private parent loan
Variable rate	Not available	Varies; can range from 4.98% to 12.79% or more
Fixed rate	8.05%	Varies; can range from 4.43% to 16.99% or more
Origination fee	4.228% for loans disbursed between Oct.1, 2021 to Oct. 1, 2024	Most leading private student loan lenders don’t charge origination fees
Loan amounts	Up to the cost of attendance, minus other financial aid received	Up to the cost of attendance, minus other financial aid received
Terms	Standard plan: 10 years Extended plan: 25 years Other plans available via federal Direct consolidation loan	Varies; typically 5 to 15 years

Deciding between federal and. private student loans requires a careful look at your specific situation. To see how each loan type could best serve you, consider the following…

A Parent PLUS loan might be for you if:

You work for a nonprofit or the government and want to pursue Public Service Loan Forgiveness
You are eligible for an income-driven repayment plan (although you will need to switch to a Direct Consolidation loan first)
Your credit score is too low to qualify for a better rate with a private lender
You don’t have an adverse credit history (e.g., no recent bankruptcies, foreclosures or delinquencies)

A private parent loan might be for you if:

You have a robust credit score (or a cosigner who does)
You don’t think you will need to pursue student loan forgiveness
You aren’t eligible for an income-driven repayment plan

How to get a parent student loan

Apply for a Parent PLUS loan

You can conveniently apply for a Parent PLUS loan online — check out our complete guide to studentaid.gov for tips. You’ll need to complete your application in a single session, but the entire process takes only about 20 minutes.

You’ll provide information about the student for whom you’re borrowing, as well as details on their school and the loan amount. Next, you’ll provide your own financial details and consent to a credit check.

As explained above, you may have to apply with an endorser if you have adverse credit. Also, if you’ve placed a freeze on your credit, make sure to remove it ahead of time to ensure a speedy process.

Once your loan is approved, Federal Student Aid will send the funds directly to the school. Any remaining balance can be forwarded to you or the student.

Apply for a private parent loan

Many online lenders let you browse rate offers without impacting your credit. By comparing these offers, you can find the best loan terms for you.

After choosing your loan, you’ll need to fill out the complete application, providing details about yourself, the student, the school and the loan amount. You’ll also need to consent to a hard credit inquiry (which does impact your credit score slightly) and meet the lender’s borrowing criteria.

Since each lender has its own process, confirm details about loan disbursement and the repayment period when you decide to apply.

Alternatives to parent loans for college

Taking on a parent loan can help reduce your child’s overall student loan debt. However, a parent loan isn’t always the best choice, especially if you want to limit your own debt. Here are some alternative funding options to consider.

Scholarships and grants: You can help your child research and apply for a range of scholarships, such as full-ride scholarships, grants and scholarships for women and scholarships for Latino and Hispanic students.
School aid: Contact your child’s school to learn more about institutional aid, including additional scholarships, grants or school-funded loans.
Work-study programs: Your child may receive a work-study opportunity as part of their financial aid package. These positions are often flexible, allowing students to work around their class schedule.
Part-time jobs: If your child can manage working while juggling classes, a part-time college job can help cover financial gaps.
Crowdfunding: Try rallying friends and family to donate to your child’s education by launching a GoFundMe campaign or through the Gift of College platform.

Also, check out our guide to getting more financial aid.

How we chose our picks for best parent loans

We selected the private student lenders above by looking at major institutions offering loans for parents with competitive rates, flexible terms and an easy application process. By compiling detailed information on rates, terms, loan amounts and basic eligibility requirements, we hope you can make a sound decision to address you and your child’s immediate financial needs.

Here are the criteria we assessed to choose the best parent student loans:

Eligibility with credit scores as low as 660
Flexible loan amounts that can cover up to your child’s school’s full cost of attendance
No origination fees
Autopay or auto-debit discounts

Frequently asked questions

Generally, it’s best for the student to get a loan for college, especially for federal student loans, which are generally the best type. Federal student loans have better rates, terms and more flexible payment plans than federal parent loans do.

For example, the student versions are eligible for various income-driven repayment plans. In contrast, Parent PLUS loans can only apply for an income-driven repayment plan after consolidating the loan first. However, a parent loan can help cover remaining financial gaps after the child has exhausted all federal student loan options.

If the loan’s only borrower is the parent, then that parent will assume full responsibility for repayment. However, if the loan has a cosigner, both parties will equally share responsibility — although the primary borrower is usually the one to make payments.

Make sure you understand your loan’s terms because sometimes a lender might refer to a “parent loan” which is actually a student loan with a parent cosigner.

Typically, no. The parent loan stays in the parent’s name until the debt is paid in full. However, you might be able to refinance the loan into your child’s name. (But note that you’ll lose federal protections if you refinance a Parent PLUS loan.)

Yes. If you have a Parent PLUS loan, you can consolidate your loan and enroll in an income-contingent repayment plan, which results in student loan forgiveness after 25 years. You can also apply for the Public Service Loan Forgiveness program, although make sure you understand the criteria and process first.

Unfortunately, the Department of Education doesn’t forgive Parent PLUS loans when you retire. You must repay the total debt unless you die or become permanently disabled. However, you may qualify for an income-contingent repayment plan or student loan forgiveness. You can also consider a student loan refinance if you find a lower rate with a private lender, although you’ll lose government protections when you refinance federal student loans.

Best Parent Loans for College

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10 best parent loans for college

Parent PLUS loan: Best for federal benefits

Citizens Bank: Best for multiyear approval

College Ave: Best for convenient cash

Sallie Mae: Best for cosigned loans

Education Loan Finance (ELFI): Best for transparent application process

Rhode Island Student Loan Authority (RISLA): Best for private borrower protections

ISL Education Lending: Best for competitive rates

SoFi: Best for member perks

Advantage Education Loan: Best for nontraditional students

INvestED: Best for Indiana residents

Types of parent loans for college

Federal Parent PLUS loan

Private parent loans

Parent PLUS vs. private loan

How to get a parent student loan

Apply for a Parent PLUS loan

Apply for a private parent loan

Alternatives to parent loans for college

How we chose our picks for best parent loans

Frequently asked questions

Is it better for the student to get a loan or the parent?

Who is responsible for the repayment of a parent student loan?

Can a parent student loan be transferred to the student?

Are there student loan forgiveness programs for parents?

What happens to a Parent PLUS plus loan when I retire?