8 Best Parent Loans for College: Parent PLUS and Private
Don’t take on debt for your child unless you’re in a strong financial position yourself.
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Parent PLUS loans are federal student loans that are issued to parents. Parents looking to borrow money for their child's education can also look to private loans offered by banks and online lenders. They generally don't come with fees, unlike federal parent PLUS loans. If your finances and credit are solid, you may find private parent student loans a better deal.
Parent student loans are available to mothers and fathers who want to help put their kids through college. But as much as you love your child, don’t take on debt for them unless you’re in a strong financial position yourself.
Before taking out parent student loans, make sure that:
Your child has maxed out federal student loan options.
You’re saving enough for retirement.
You’ve paid off high-interest debt, like credit cards.
If you decide to move forward, 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
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 | |
4.5 /5 | Does not disclose | 5.29-8.04% | N/A | ||
5.0 /5 | 680 | 4.05-8.64% | N/A | See Offers on RISLA's website | |
5.0 /5 | 660 | 3.95-8.01% | 6.54-11.08% | ||
5.0 /5 | Mid-600s | 3.54-15.99% | 4.64-15.99% | See Offers on SoFi's website | |
4.0 /5 | 670 | 4.37-8.08% | 6.11-9.91% | ||
4.0 /5 | 660 | 5.65-16.16% | 5.64-15.35% |
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, 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 provide study support to their child.
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.
Advantage Education Loan Parent Loan
Does not disclose
5.29-8.04%
N/A
- Key facts
Advantage Education Loans are fixed-rate loans with borrower-friendly features, such as no late fees and a generous amount of forbearance. These loans are from the nonprofit Kentucky Higher Education Student Loan Corp. and are available outside Kentucky, but not in every state.
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
RISLA Private Student Loan
680
4.05-8.64%
N/A
- Key facts
Best for parents who want to reduce child's debt levels.
Pros- Income-based repayment plan available, with forgiveness after 25 years.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Partial loan forgiveness for eligible internships; interest forgiveness for qualifying nurses.
Cons- Fewer repayment terms available than other lenders.
Qualifications- Typical credit score of approved borrowers: 768.
- Minimum income: $40,000.
- Loan amounts: $1,500 to $45,000.
Available Term Lengths10 or 15 years
ISL Private Student Loan
660
3.95-8.01%
6.54-11.08%
- Key factsBest for low-interest loans with consumer-friendly features, like a generous forbearance policy.Pros
- Forbearance of 24 months is longer than many lenders offer.
- No late fees.
Cons- Only offers 2 loan terms.
Qualifications- Typical credit score of approved borrowers or co-signers: 670.
- Minimum income: No minimum income.
- Loan amounts: $1,001 or $2,001, based on residency and school location, up to cost of attendance minus other aid received.
Available Term Lengths10 or 15
Ascent Parent Loan
660
5.65-16.16%
5.64-15.35%
- 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.
QualificationsDisclaimerAscent’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 2/1/2025 and reflect an Automatic Payment Discount of 0.25% for credit-based college student loans and 1.00% discount on outcomes-based loans when you enroll in automatic payments. The Full P&I (Immediate) Repayment option is only available for college loans (except for outcomes-based loans) originated on or after June 3, 2024. 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. 1% Cash Back Graduation Reward subject to terms and conditions. For details on Ascent borrower benefits, visit AscentFunding.com/BorrowerBenefits. The AscentUP platform is only available to eligible Ascent borrowers and subject to terms and conditions.
SoFi Undergraduate Student Loan
Mid-600s
3.54-15.99%
4.64-15.99%
- Key factsBest for flexible repayment options and no fees.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.
Qualifications- Typical credit score of approved borrowers or co-signers: 700+.
- Minimum income: No minimum.
- Loan amounts: $1,000 minimum.
Available Term Lengths5, 7, 10 or 15 years
INvestED Student Loan
670
4.37-8.08%
6.11-9.91%
- Key factsBest for Indiana residents or students in the state with good grades.Pros
- Forbearance of 24 months is longer than many lenders offer.
- Interest rate reduction for autopay.
Cons- You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.
- You must be an Indiana resident or attend a school in the state to qualify.
Qualifications- Typical credit score of approved borrowers or co-signers: 710.
- Minimum income: $39,996.
- Loan amounts: $1,001 up to annual cost of attendance.
Available Term Lengths5, 10 or 15 years
Types of parent student loans
There are two types of loans available for parents: federal direct PLUS loans and private student loans.
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 subsidized and unsubsidized loans for students.
The interest rate for federal direct PLUS loans is 5.28% for 2020-21. There is also an origination fee of 4.228%, which is deducted from each loan disbursement.
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.
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 get a parent student loan
To apply for a PLUS loan, fill out the Free Application for Federal Student Aid with your child. NerdWallet's FAFSA guide can help. Then, complete the direct PLUS loan application for parents.
You can apply for a private parent student loan directly with the lender.
Before applying for a private parent loan, shop around to find the lowest student loan interest rate you qualify for. Some lenders have a pre-qualification process that allows you to see a personalized rate before the lender does a hard credit pull.
Who pays a parent student loan?
Before taking out a parent student loan, make sure you and your child work out clear plans for repayment. The loan will ultimately be your responsibility to repay. The only way to transfer parent loans is to have your child refinance the loan in his or her name.
Last updated on October 24, 2024
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
- Advantage Education Loan Parent Loan: Best for Private parent loans for college
- RISLA Private Student Loan: Best for Private parent loans for college
- ISL Private Student Loan: Best for Private parent loans for college
- SoFi Undergraduate Student Loan
- INvestED Student Loan
- Ascent Parent Loan: Best for Private parent loans for college
