Private Student Loan rates starting at 2.49% APR
 | 2.49% to 13.85% 1VARIABLE APR | |
 | 2.55% to 11.44% 2VARIABLE APR | |
 | 3.25% to 13.59% 3VARIABLE APR |
- Variable APR
Note that the government has paused all repayment on federally held student loans through the end of 2022, with no interest to be charged during that period and no loans to be held delinquent or in default.
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If you have a child in college, you might be considering borrowing a parent PLUS loan to help them pay for tuition. While you can borrow up to your student’s full cost of attendance, you’ll need to apply for the parent PLUS loan every year to ensure continued funding.
This is because federal financial aid, such as grants and loans, are distributed annually based on the information you provide on the Free Application for Federal Student Aid (FAFSA).
Let’s take a closer look at how parent PLUS loans work and when to apply for them. Specifically:
- Why you have to apply for the parent PLUS loan every year
- How to apply for a parent PLUS loan
- Parent PLUS loan rates, terms and repayment plans
- Parent PLUS loans vs. private loans
- Why you should plan carefully when borrowing a parent loan
Why you have to apply for the parent PLUS loan every year
Just like other types of federal financial aid, you must apply for the parent PLUS loan on an annual basis, or at least every year you need the loan.
Financial aid is distributed annually for a few reasons. First, it’s based on the information you provide on the FAFSA, such as your family’s income and number of children in college. If your circumstances change, your eligibility for aid will be adjusted.
Second, the amount you can borrow is based on the school’s cost of attendance, which is also subject to change from year to year. For instance, tuition rates could increase, or your child might be eligible for more aid if they’re receiving fewer scholarship awards in later years.
And third, a parent PLUS loan involves a credit check. If you have adverse credit, you won’t get approved, unless you apply with an endorser. Federal Student Aid checks your credit each year before giving you a loan.
For these reasons, you can borrow a parent PLUS loan one year at a time, just as your child can borrow federal direct loans one year at a time. All that said, filing a renewal FAFSA for your student’s sophomore, junior or senior year is usually easy.
As long as your circumstances haven’t changed much, you can simply transfer the information you provided from the previous year into the new FAFSA, make any necessary updates and hit submit.
The FAFSA becomes available on Oct. 1 each year, and it’s a good idea to submit it as soon as you can. As for the parent PLUS loan, you can typically apply for it a few months later, in the spring or early summer.
How to apply for a parent PLUS loan
There are a few steps involved in applying for a parent PLUS loan.
- Submit the FAFSA so that the government can calculate your Estimated Family Contribution (EFC). Note that EFC will soon be renamed Student Aid Index.
- Create a StudentAid.gov account and fill out the application. It asks for your and your child’s personal information, as well as how much you want to borrow. Plus, you need to consent to a credit check. Borrowers with adverse credit may need to apply with an endorser to qualify. You can preview the parent PLUS application form here.
- Sign a Master Promissory Note. By signing this loan agreement, you agree to pay back the loan according to its terms and conditions. You usually only need to sign this the first time you borrow, as it’s good for 10 years.
- Wait for the school to receive the funds. The school will apply the parent PLUS loan funds to tuition, fees and other related charges. If you borrowed more than you need, the school will disburse the leftover funds to you. You can use these remaining funds to cover other educational costs or return them to Federal Student Aid.
- Begin repaying your loan. You can either start making payments on the loan immediately or defer repayment while your child is in school, depending on the plan you selected. Note that deferring payments means you’ll pay more in interest in the long run.
While most parents can apply for PLUS loans on the StudentAid.gov website, some schools have special processes in place. Check with your child’s college, specifically the financial aid office, about the best way for you to apply for a parent PLUS loan.
Parent PLUS loans: Rates, terms and repayment plans
The parent PLUS loan can be a useful way to cover college costs, as it comes with a reasonable interest rate and flexible repayment terms.
PLUS loans have fixed interest rates, meaning the rate at which you borrowed the loan will remain the same while you’re paying it back. As mentioned, you can also choose whether to make payments on your PLUS loan immediately or defer payments while your child is in school and for six months after they graduate or drop below half-time enrollment.
If your PLUS loan payments are burdensome, you might be able to adjust them on a graduated, extended or income-contingent repayment plan. Finally, parent PLUS loans are eligible for certain federal forgiveness programs.
All that said, PLUS loans do have a couple of downsides. For one, they come with an origination fee, which adds to your total cost of borrowing.
Second, federal loans like PLUS loans have no statute of limitations. If you default on your student loans, collectors can pursue you for repayment, and the government can garnish your wages, tax refund or even Social Security benefits.
Parent PLUS loans vs. private loans
PLUS loans aren’t your only option as a parent borrower. You can also consider private student loans from a bank, credit union or online lender.
Private student loans typically have stricter credit requirements than PLUS loans. But if you have excellent credit, it’s possible you could get an even lower rate.
Plus, some lenders, such as Citizens Bank, let you apply for multiyear approval from the beginning, so you won’t have to apply year after year.
Here are some other key differences between the federal PLUS loan and a private student loan for parents.
| Parent PLUS loans | Private loans for parents | |
|---|---|---|
| Interest rate | 5.3% for loans disbursed between July 1, 2020 and July 1, 2021 | Varies by lender |
| Fixed or variable rate | Fixed rate | Fixed, variable or hybrid rate |
| Origination fee | 4.228% for loans issued between Oct. 1, 2020, and before Oct. 1, 2021 | Some lenders do not charge origination fees |
| Qualification requirements | Parents must not have adverse credit, such as from a delinquent debt, foreclosure or repossession | Private lenders consider applicants’ credit history and debt-to-income ratio |
Private student loans also have a statute of limitations in the event of default, meaning that collectors can’t pursue repayment after a certain amount of time has passed. That said, failing to pay back your private loan can still have severe consequences, as it could wreck your credit or even result in you getting sued.
When comparing PLUS loans and private student loans for parents, it’s worth thinking about these differences, especially your interest rate, repayment options and potential eligibility for forgiveness programs.
Why you should plan carefully when borrowing a parent loan
Once you’ve carefully researched loan options and learned when and how to apply for a parent PLUS loan, you can make an informed decision about how best to fund your child’s education.
Remember to consider how student loan debt will affect your future. You don’t want to jeopardize your retirement security, so find the most affordable loan you can and consider creating a plan for early repayment.
If you apply for a PLUS loan and are denied, taking these steps could help.
Christy Rakoczy and Andrew Pentis contributed to this report.
Interested in refinancing student loans?
Here are the top 9 lenders of 2022!| Lender | Variable APR | Eligible Degrees | |
|---|---|---|---|
 | 2.49% – 11.72%1 | Undergrad & Graduate | |
 | 2.50% – 6.30%2 | Undergrad & Graduate | |
 | 4.13% – 7.39%3 | Undergrad & Graduate | |
 | 2.49% – 7.99%4 | Undergrad & Graduate | |
 | 2.49% – 7.99%5 | Undergrad & Graduate | |
 | 3.24% – 8.24%6 | Undergrad & Graduate | |
 | 2.48% – 7.98% | Undergrad & Graduate | |
 | 1.74% – 7.99%7 | Undergrad & Graduate | |
 | 3.69% – 9.92%8 | Undergrad & Graduate | |
| Check out the testimonials and our in-depth reviews! 1 Important Disclosures for Splash Financial. Splash Financial DisclosuresTerms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount. The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice. To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit. Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of September 6, 2022. 2 Important Disclosures for Laurel Road. Laurel Road DisclosuresAll credit products are subject to credit approval. Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $9 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com. As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount. Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate. Interest Rate: A simple annual rate that is applied to an unpaid balance. Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%. KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. This information is current as of April 29, 2021. Information and rates are subject to change without notice. 3 Important Disclosures for LendKey. LendKey DisclosuresRefinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution. Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of 5 years and is reserved for applicants with FICO scores of at least 810. As of 09/09/2022 student loan refinancing rates range from 4.13% APR – 7.39% Variable APR with AutoPay and 2.99% APR – 9.93% Fixed APR with AutoPay. 4 Rate range above includes optional 0.25% Auto Pay discount. Important Disclosures for Earnest. Earnest DisclosuresYou can choose between fixed and variable rates. Fixed interest rates are 3.99% – 8.74% APR (3.74% – 8.49% APR with Auto Pay discount). Starting variable interest rates are 2.74% APR to 8.24% APR (2.49% – 7.99% APR with Auto Pay discount). Variable rates are based on an index, the 30-day Average Secured Overnight Financing Rate (SOFR) plus a margin. Variable rates are reset monthly based on the fluctuation of the index. We do not currently offer variable rate loans in AK, CO, CT, HI, IL, KY, MA, MN, MS, NH, OH, OK, SC, TN, TX, and VA. 5 Important Disclosures for Navient. 6 Important Disclosures for SoFi. SoFi DisclosuresFixed rates range from 3.99% APR to 8.24% APR with a 0.25% autopay discount. Variable rates from 3.24% APR to 8.24% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 8.95% APR; 15- and 20-year terms are capped at 9.95% APR. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi. 7 Important Disclosures for Purefy. Purefy DisclosuresPurefy Student Loan Refinancing Rate and Terms Disclosure: Annual Percentage Rates (APR) ranges and examples are based on information provided to Purefy by lenders participating in Purefy’s rate comparison platform. For student loan refinancing, the participating lenders offer fixed rates ranging from 2.73% – 7.99% APR, and variable rates ranging from 1.74% – 7.99% APR. The maximum variable rate is 25.00%. Your interest rate will be based on the lender’s requirements. In most cases, lenders determine the interest rates based on your credit score, degree type and other credit and financial criteria. Only borrowers with excellent credit and meeting other lender criteria will qualify for the lowest rate available. Rates and terms are subject to change at any time without notice. Terms and conditions apply. 8 Important Disclosures for Citizens. CitizensBank DisclosuresEducation Refinance Loan Rate Disclosure: Variable interest rates range from 3.69%-9.92% (3.69%-9.92% APR). Fixed interest rates range from 4.49%-10.11% (4.49%-10.11% APR). Undergraduate Rate Disclosure: Variable interest rates range from 6.39%- 9.60% (6.39% – 9.60% APR). Fixed interest rates range from 6.58% – 9.79% (6.58% – 9.79% APR). Graduate Rate Disclosure: Variable interest rates range from 3.69% – 9.16% (3.69% – 9.16% APR). Fixed interest rates range from 4.49% – 9.35% (4.49% – 9.35% APR). Education Refinance Loan for Parents Rate Disclosure: Variable interest rates range from 3.69%- 9.09% (3.69%- 9.09% APR). Fixed interest rates range from 4.49% – 9.28% (4.49% – 9.28% APR). Medical Residency Refinance Loan Rate Disclosure: Variable interest rates range from 3.69% – 9.16% (3.69% – 9.16% APR). Fixed interest rates range from 4.49% – 9.35% (4.49% – 9.35% APR). |
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How Student Loan Hero Gets Paid
Student Loan Hero is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). Student Loan Hero does not include all lenders, savings products, or loan options available in the marketplace.
Student Loan Hero Advertiser Disclosure
Student Loan Hero is an advertising-supported comparison service. The site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.
| Lender | Variable APR | Degrees That Qualify | More Info |
|---|---|---|---|
 | 2.49% – 13.85%1 | Undergraduate Graduate | |
 | 2.55% – 11.44%2 | Undergraduate Graduate | |
 | 3.25% – 13.59%3 | Undergraduate Graduate | |
 | 0.00% – 23.00%4 | Undergraduate Graduate | |
 | 3.25% – 9.69%5 | Undergraduate Graduate | |
 | N/A 6 | Undergraduate Graduate | |
Learn more about private student loan lenders. Learn more about private student loan lenders. | |||
