Currently, there are 3.6 million parent PLUS loan borrowers with a total of $96.1 billion in debt. The relatively high interest rate of a PLUS loan makes it difficult to manage for many parent borrowers. Fortunately, you could find relief by applying to refinance parent PLUS loans to a lower rate.
Parent PLUS borrowers tend to be attractive candidates for refinancing because they often have a longer credit history and stable employment. Alternatively, you can refinance the parent PLUS loan in the student’s name if you want to rid yourself of responsibility for the debt.
Whatever your goals, here is our vetted list of top lenders to refinance parent PLUS loans, based on their offering competitive interest rates along with other benefits outlined below.
Top 8 lenders to refinance parent PLUS loans
By refinancing your parent PLUS loan with the following lenders, you could lower your interest rate, adjust your monthly payment and restructure your debt in a way that works for your budget.
1. Earnest
Earnest takes a unique approach to refinancing Parent PLUS Loans. Instead of just looking at your credit score, Earnest considers others factors, like the value of your bank accounts and investments. If your credit is less than stellar, this comprehensive approach could help you qualify. That said, you will need a minimum credit score of 650.
Details:
- Refinances both private and federal undergraduate or graduate student loans
- Offers rates starting at 1.99% APR variable (with autopay) and 5.79% APR fixed (with autopay)
- Lets you pick any monthly payment and term between 5 and 20 years
- Provides the option to make biweekly or monthly payments
- Earnest looks at other factors that other lenders may overlook to give you the lowest possible rate.
- Offers a commitment-free two-minute rate check that doesn’t impact your credit score
- Never passes you off to a third party. Their on-site team is your customer service partner for the life of your loan
- Allows you to change your loan as your life and needs change. Refinance your loan for free, change payment dates or skip a payment once a year and make it up later
- Has forbearance or deferment options that pause your monthly payments if you run into financial hardship or go back to school
- Doesn’t charge origination fees, application fees or prepayment fees
- Requires that you’re currently employed or have sufficient income
- Requires you to be a U.S. citizen or permanent resident
- Important Disclosures
2. SoFi
SoFi offers student loan refinancing for parent PLUS loans, as well as for undergraduate and graduate student loans. This lender offers some unique perks and support for borrowers.
Details:
- Offers refinancing and consolidation of private and federal student loans
- Is available for both undergraduate and graduate school student loans
- Offers 2.25% to 6.43% APR (with autopay) variable rates
- Offers 2.99% to 6.88% APR (with autopay) fixed rates
- Provides 5, 7, 10, 15 and 20-year repayment terms
- Doesn’t charge origination fees or prepayment penalties
- Has unemployment protection – pauses loan payments while you search for a new job
- Provides career support – complimentary coaching for SoFi members
- Offers a free call with a financial planner to discuss your financial situation
- Holds networking events for members, such as local dinners and happy hours
- Important Disclosures
3. Laurel Road
Laurel Road offers refinancing for parent PLUS loans, as well as for undergraduate, graduate and medical school loans.
Details:
- Offers refinancing and consolidation of private and federal student loans
- Has the option for parents to refinance Parent PLUS loans in their own name (based on the parent’s eligibility) or their child’s name (based on the child’s eligibility).
- Offers 1.89% to 5.90% (with autopay) variable rates
- Offers 2.80% to 6.00% (with autopay) fixed rates
- Provides 5, 7, 10, 15, 20 year repayment terms
- Caps variable rates at 9% for 5-10 year terms. For greater than 10 year term, maximum rate cap is 10% APR
- Doesn’t charge an origination fee or prepayment penalty
- Gives a 0.25% interest rate reduction for setting up automatic payments
- Important Disclosures
4. CommonBond
Do you want your refinancing with a side of philanthropy? CommonBond might be the best option for you. Through its partner Pencils of Promise, CommonBond donates money for schools, technology and teachers in Ghana. This socially-minded lender also takes a unique approach to interest rates, offering fixed, variable and hybrid rates, which involve a fixed rate for the first five years of loan repayment and a variable rate for the remaining term.
Details:
- Offers refinancing and consolidation of private and federal student loans
- Is available for undergraduate, graduate and Parent PLUS student loans
- Offers 1.99% to 6.84% APR variable rate refinancing (with autopay)
- Has 2.83% to 6.74% APR fixed rate refinancing (with autopay)
- Also offers hybrid rate refinancing — check their site for details
- Provides 5, 7, 10, 15 or 20-year repayment terms
- Gives a 0.25% interest rate reduction with automatic payments
- Allows for forbearance if you run into financial hardship
- Provides access to CommonBond Community – Borrowers are connected to events in their cities, networking opportunities, and lifestyle perks
- Doesn’t charge any application or origination fees
- Important Disclosures
5. College Ave
College Ave offers student loan refinancing for loans starting at $5,000.
Details:
- Offers refinancing and consolidation of private and federal student loans
- Has variable rates of 3.34% to 6.19% (with autopay) and fixed rates of 6.19% to 6.04% (with autopay)
- Provides flexible terms — College Ave offers 16 different repayment term options.
- Takes as little as one minute to apply and get an instant credit prequalification
- Doesn’t charge origination fees or prepayment penalties
- Important Disclosures
6. Splash Financial
Online company Splash Financial offers one product — student loan refinancing — to help parents and graduates save money on their student loans. It partners with banks and credit unions to bring you low-rate loans.
Details:
- Offers refinancing and consolidation of private and federal student loans
- Has variable rates of 1.89% to 6.66% and fixed rates of 2.63% to 6.63%
- Offers loan terms between 5 and 25 years
- Offers an instant online rate quote where you can pre-qualify for a loan
- Doesn’t charge origination fees or prepayment penalties
LEARN MORE ABOUT SPLASH FINANCIAL
7. Citizens Bank
According to Citizens Bank, parents who refinance with them could save up to 3.49% on their interest rate.
- Offers student loan refinancing designed specifically for parent borrowers
- Requires a minimum refinance amount of $10,000 and maximum of $300,000 for loans borrowed for bachelor’s degree programs and of $500,000 for loans borrowed for graduate degrees.
- Provides variable rates at 1.22% – 11.54% and fixed rates of 3.99% – 11.80%
- Offers loan terms of 5, 7, 10, 15 or 20 years
- Has loyalty and interest rate discounts of up to 0.50%
- Allows you to check your rate online with no impact on your credit score
LEARN MORE ABOUT CITIZENS BANK
8. PenFed Credit Union
PenFed Credit Union serves members of the military and employees of the Department of Defense and Department of Homeland Security. But even if you’re not affiliated with the military, you might qualify for membership in PenFed Credit Union. Members can apply to refinance parent loans for better rates.
- Offers variable rates starting at 2.19% and fixed rates starting at 2.99%
- Allows you to apply online in less than 15 minutes
- Doesn’t charge application or origination fees
LEARN MORE ABOUT PENFED CREDIT UNION
Shop around before you refinance parent PLUS loans
Refinancing often makes sense for Parent PLUS loan borrowers, who may have a higher chance of getting approved because of their credit history and employment status, which could mean thousands of dollars in savings.
Some borrowers also choose to refinance parent PLUS loans in the student’s name to transfer responsibility for the debt. Whichever approach you choose, refinancing parent PLUS loans could lead to major savings on your debt.
Before choosing a refinancing offer, check your rates with a few lenders. By shopping around, you can find the best possible rate on your refinanced parent PLUS loan.
Rebecca Safier and Christy Rakoczy contributed to this report.
