Refinance Parent PLUS Loans

You can refinance Parent PLUS Loans to save money, lower your interest rate and pay off debt more quickly. If you have good credit, stead and recurring income and a history of financial responsibility, you may qualify for a lower interest rate on your Parent PLUS Loans.

Parent PLUS Loan Refinancing is an effective tool to pay off Parent PLUS Loans. When you refinance Parent PLUS Loans, you exchange your current Parent PLUS Loans for a new, single student loan with a lower interest rate. The goal of Parent PLUS Loan refinancing is to save money, get out of debt and pay off Parent PLUS Loans faster.

Compare The Best Refinance Parent PLUS Loans For 2020

Lender
APR
Minimum Credit
1.99% – 5.79%
650

Overview

KeyValue
Variable Rates:1.99% – 5.64%
Fixed Rates:2.98% – 5.79%
Minimum Credit Score:650
Minimum Income:None

Details

KeyValue
Eligible Loans:Private & Federal
Minimum Loan Amount:$5,000
Loan Terms:5 – 20 years
Borrower Residency:All States except KY or NV
Hardship Deferment:Yes
Co-signer Option:Yes

1.99% – 7.27%
660

Overview

KeyValue
Variable Rates:1.99% – 7.10%
Fixed Rates:2.88% – 7.27%
Minimum Credit Score:660
Minimum Income:None

Details

KeyValue
Eligible Loans:Private & Federal
Minimum Loan Amount:$5,000
Loan Terms:5 – 20 years
Borrower Residency:All States
Hardship Deferment:Varies
Co-signer Option:Yes

1.99% – 5.62%
650

Overview

KeyValue
Variable Rates:1.99% – 5.62%
Fixed Rates:2.99% – 5.62%
Minimum Credit Score:Good or Excellent
Minimum Income:None

Details

KeyValue
Eligible Loans:Private & Federal
Minimum Loan Amount:$5,000 ($10,000 in CA)
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All States
Hardship Deferment:Yes
Co-signer Option:Yes

2.39% – 6.01%
680

Overview

KeyValue
Variable Rates:2.39% – 6.01%
Fixed Rates:3.19% – 5.99%
Minimum Credit Score:680
Minimum Income:$35,000

Details

KeyValue
Eligible Loans:Private & Federal
Minimum Loan Amount:$15,000
Loan Terms:5, 7, 10 years
Borrower Residency:All States
Hardship Deferment:Yes
Co-signer Option:Yes
1.99% – 7.02%
700

Overview

KeyValue
Variable Rates:1.99% – 6.65%
Fixed Rates:3.20% – 7.02%
Minimum Credit Score:700
Minimum Income:None

Details

KeyValue
Eligible Loans:Private & Federal
Minimum Loan Amount:$5,000
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All States
Hardship Deferment:Yes
Co-signer Option:Yes

Checking Your Rate Doesn’t Affect Your Credit Score
Disclosures: Earnest | ElFi | Laurel Road | SoFi | Splash

Important Questions: Parent PLUS Loan Refinancing

What is Parent PLUS Loan refinancing?

There are many advantages when you refinance Parent PLUS Loans:

Parent PLUS Loan refinancing is the process of receiving a lower interest rate on a new loan and using your new loan to pay off your existing Parent PLUS Loans. When you refinance Parent PLUS Loans, a lender will both refinance and consolidate your Parent PLUS Loans into a new, single loan. This new loan will have one monthly payment, one student loan servicer and one interest rate. Not only can you save money with Parent PLUS Loan refinancing, but also Parent PLUS Loan refinancing helps you manage your debt and simplifies your financial life by only having to make one monthly payment.

  • Lower your interest rate
  • Save money
  • Pay off Parent PLUS Loans faster
  • Change your loan terms
  • Convert multiple Parent PLUS Loans into a single student loan
  • Change lenders and student loan servicers for better customer service
  • Remove a co-signer from your Parent PLUS Loans

You can check and compare the latest Parent PLUS Loan refinancing rates to determine how much money you can save.

How do you refinance Parent PLUS Loans?

There are two ways to refinance Parent PLUS Loans:

  • Refinance Parent PLUS Loans in your name only
  • Refinance Parent PLUS Loans in your child’s name

Refinance Parent PLUS Loans in your name only

Refinancing Parent PLUS Loans in your name only is the standard way that borrowers refinance Parent PLUS Loans. When you refinance Parent PLUS Loans, the process is similar to how to refinance student loans. To qualify for Parent PLUS Loan refinancing, you will need good credit, stable and recurring monthly income, and a low debt-to-income ratio. Parent PLUS Loans refinance lenders want to ensure that you can afford your monthly living expenses, plus debt payments for mortgages, student loans and credit cards. When you refinance Parent PLUS Loans, a private lender pays off your existing Parent PLUS Loans, which means you no longer will have the benefits of a federal government loan.

Refinance Parent PLUS Loans in your child’s name

Can a Parent PLUS Loan be transferred to the student? Many Parent PLUS Loans borrowers ask whether they can transfer Parent PLUS Loans to their child. The short answer is no, you can’t directly transfer Parent PLUS Loans to a child. However, you can refinance Parent PLUS Loans in your child’s name with certain private lenders. To qualify, the student must qualify for student loan refinancing. That means your child must have good credit (at least 650 or higher), stable and recurring income, and a low debt-to-income ratio.

When should I refinance my Parent PLUS Loans?

When to refinance Parent PLUS Loans depends on several factors, including when you can get a lower interest rate compared to the interest rate on your current Parent PLUS Loans. Parent PLUS Loans typically have a high interest rate. Generally, it makes financial sense to refinance Parent PLUS Loans as soon as possible so you can save money, pay off Parent PLUS Loans faster and get out of debt more quickly.

Here’s an example of how Parent PLUS Loan refinancing can help save you money. For example, let’s assume you have $60,000 of Parent PLUS Loans at a 7% interest rate and a 10-year repayment term. If you can refinance your Parent PLUS Loans and receive a 3% interest rate and a 10-year repayment term, you would save $117 per month and $14,074 total.

This Parent PLUS Loan refinancing calculator shows you how much money you can save with Parent PLUS Loan refinancing.

Here are some examples when to refinance Parent PLUS Loans:

  • Your Parent PLUS Loans have high interest rates
  • You have good credit and income
  • You want to change your loan terms
  • You want to change your lender or student loan servicer
  • Anytime you want a lower rate
  • Anytime you want to save money

Here’s when you shouldn’t refinance Parent PLUS Loans:

  • You want student loan forgiveness
  • You are unemployed or underemployed
  • You plan to enroll in an income-driven repayment plan such as Income-Contingent Repayment (ICR)
  • You defaulted on your Parent PLUS Loans

How do I refinance my Parent PLUS Loans?

You can apply online to refinance Parent PLUS Loans with banks and online lenders. You should compare the best rates for Parent PLUS Loan refinancing, and you can check your interest rate for free with as many lenders as possible. The process takes about two minutes and there is no impact to credit score.

When you are ready to apply, lenders will check your credit with a hard credit pull. The application takes about 10-15 minutes, and you can apply to multiple lenders at once to increase your chances of approval. The good news is that there are no fees to refinance Parent PLUS Loans, and when you apply to multiple lenders in a short time period (such as a week), credit bureaus only count it as one credit inquiry.

There is no limit to the number of times that you can refinance Parent PLUS Loans so you can refinance each time you find a lower rate.

How can I refinance my Parent PLUS Loans?

When lenders refinance Parent PLUS Loans, they want borrowers who have:

  • Good Credit: Lenders prefer to refinance Parent PLUS Loans for borrowers who have at least a 650 credit score, and preferably a credit score in the 700’s or higher.
  • Good Income: Most lenders may require that you graduated and earned a degree before you refinance Parent PLUS Loans. Most lenders will also expect that you are currently employed or have a written job offer, and your income is stable and recurring.
  • Low Debt-To-Income. Lenders also want to ensure that you can repay your refinanced student loan, monthly living expenses and any other debt payments.

If you have bad credit, lower income or don’t meet these qualifications, you can apply with a creditworthy co-signer who meets these qualifications.

What’s the difference between Parent PLUS Loan refinancing and student loan consolidation?

Parent PLUS Loan refinancing. Parent PLUS Loan refinancing is done with a private lender, while federal student loan consolidation is done with the federal government. The federal government does not refinance Parent PLUS Loans, so the best choice for Parent PLUS Loan refinancing is to refinance with a private lender.

Parent PLUS Loan refinancing is the process of receiving a new loan with a lower interest rate and monthly payment in place of your current Parent PLUS Loans. The goal of Parent PLUS Loan refinancing is to save money, pay off Parent PLUS Loans faster and get out of debt more quickly.

Federal student loan consolidation. Federal student loan consolidation is the process of combining your Parent PLUS Loans into a Direct Consolidation Loan. With Direct loan consolidation, you will have one federal student loan, one interest rate and a lower monthly payment. The downside of a Direct Consolidation Loan is that you won’t receive a lower interest rate. To receive a lower interest rate, Parent PLUS Loan refinancing is your best option.

How often can you refinance Parent PLUS Loans?

There is no limit to how often you can refinance Parent PLUS Loans. Parent PLUS Loans do not have any origination fees or a prepayment penalty, which is important because you won’t have to pay any prepayment penalties when you refinance. This means that any time you find a lower interest rate, you could refinance Parent PLUS Loans to save money without paying any fees.

There are many reasons why you should refinance Parent PLUS Loans again:

  • Get a lower interest rate
  • Change your loan terms
  • Change lenders and student loan servicers
  • Release a co-signer

Why should I refinance my Parent PLUS Loans?

The main reason to refinance Parent PLUS Loans is to get a lower interest rate. A lower interest rate means you can save money on your Parent PLUS Loans, payoff Parent PLUS Loans faster and get out of debt more quickly. You can compare lenders to find the lower interest rate for which you qualify, and also you can evaluate other loan terms.

There are several reasons why you should refinance Parent PLUS Loans:

  1. Get a lower interest rate
  2. Save money
  3. Pay off Parent PLUS Loans faster
  4. Change loan terms
  5. Simplify Parent PLUS loan repayment
  6. Change lender or loan servicer

How much does it cost to refinance Parent PLUS Loans?

There are no fees to refinance Parent PLUS Loans. That means that there are no origination fees or prepayment fees, so you can pay off Parent PLUS Loans early without any prepayment penalty.

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