| Lender | Best for… | Variable APR | Fixed APR | Min. credit score |
|---|---|---|---|---|
 | Federal benefits | Not available | 7.54% *for the 2022/2023 school year | Credit check only |
 | Multiyear approval | 7.16% to 12.67% with loyalty and autopay discounts | 6.50% to 11.01% with loyalty and autopay discounts | 700 |
 | Convenient cash | 4.74% to 15.32% with autopay discount | 4.44% to 15.32% 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 | 2.69% to 11.79% | Starting at 3.21% | 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 | 2.84% to 6.23% 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.
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.
| Loan amounts |
|
| Variable APR | Not available |
| Fixed APR | 7.54% *for the 2022/2023 school year |
| Terms |
|
| Origination fee | 4.228% for loans disbursed between Oct.1, 2021 to Oct. 1, 2023 |
| 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 |
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.
| Loan amounts |
|
| Variable APR | 7.16% to 12.67% with loyalty and autopay discounts |
| Fixed APR | 6.50% to 11.01% 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 |
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.
| Loan amounts |
|
| Variable APR | 4.74% to 15.32% with autopay discount |
| Fixed APR | 4.44% to 15.32% 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) |
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.
| Loan amounts |
|
| 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) |
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.
| Loan amounts |
|
| Variable APR | 2.69% to 11.79% |
| Fixed APR | Starting at 3.21% |
| 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 |
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.
| Loan amounts |
|
| 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 |
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.
| Loan amounts |
|
| 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 |
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.
| Loan amounts |
|
| 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 |
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.
| Loan amounts |
|
| Variable APR | Not available |
| Fixed APR | 2.84% to 6.23% 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 |
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.
| Loan amounts |
|
| 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 |
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.
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.