If you’re a parent who’s interested in helping your child pay for college, you might be in for a rude awakening. The cost of college has skyrocketed since you attended college, and you could be on the hook for anywhere between $3,520 to $33,480 per year, on average.
If you need to borrow money to pay for your kid’s college, a Parent PLUS Loan is often the best option. With the ability to consolidate the loans to get access to income-driven repayment plans and the Public Service Loan Forgiveness Program, you’ll have a lot of repayment flexibility.
But some private student loan companies offer lower interest rates than Parent PLUS Loans. Plus, you might be able to escape the latter’s 4.624 percent origination fee.
To help you sift through all the student loan companies that offer parent loans, we’ve put together some private student loans reviews for our top choices.
4 best student loan companies for parents
As you compare the following private student loans for parents, consider the interest rates, fees, and other terms and features to determine which option is best for you.
One thing to keep in mind: A search for the best private student loans for bad credit will prove futile. You typically need a decent credit score or a cosigner to qualify.
| Lender | Variable Interest Rates | Fixed Interest Rates | Repayment Terms | Notes |
| SoFi | 4.02% APR to 7.445% APR | 4.25% APR to 8% APR | Five or 10 years | Doesn’t allow interest-only payments while your child is in school. |
| College Ave | 4.33% APR to 9.31% APR | 6.62% APR to 10.57% APR | Five to 12 years in one-year increments | Sends you money directly to cover non-tuition expenses. |
| Sallie Mae | 5.12% APR to 11.49% APR | 5.74% APR to 12.87% APR | 10 years | Doesn’t allow you to pre-qualify with a soft credit check. |
| Citizens Bank | N/A | 6.64% APR to 7.24% APR | Five or 10 years | Offers an extra 0.25% interest rate reduction if you have an eligible Citizens Bank account. |
1. SoFi Parent Loan
SoFi is one of the largest student loan refinancing companies in the industry, but it also offers private student loans. Its parent loan is one of the cheapest in terms of interest rates and fees.
Interest rates and fees
You have the choice between a variable and fixed interest rate, as of January 2018:
- Variable: 4.02% APR to 7.445% APR
- Fixed: 4.25% APR to 8.00% APR
Note that these rates include a 0.25% reduction, which you qualify for when you set up autopay. Also, you can get an idea of what kind of rate you qualify for without a hard credit check.
The lender charges no application or origination fees and no prepayment penalties.
Other terms and features
You can borrow as little as $5,000 or enough to cover the cost of attendance for your child.
One big drawback to the SoFi parent loan is that you can’t defer the loan until after your child graduates. Your first payment will be due within 30 to 45 days after you receive the funds. You can, however, choose between a five-year and 10-year repayment term.
2. College Ave Parent Loan
If you want a little more flexibility with your payments, College Ave offers three repayment plans you can choose from:
- Interest-only payment: Pay just the interest charges while your child is in school and start making payments in earnest after they graduate.
- Interest-plus payment: Pay enough to cover the interest charges. You can choose what to pay on top of that amount in $20 increments.
- Full principal and interest payment: Start making the full payments right away instead of waiting.
Interest rates and fees
Although they aren’t as low as SoFi’s rates, College Ave’s interest rates are competitive. As of January 2018, you can choose between the following variable and fixed interest rates:
- Variable: 4.33% APR to 9.31% APR
- Fixed: 6.62% APR to 10.57% APR
Note that these rates include a 0.25% interest rate reduction for setting up autopay. You can get pre-qualified for an interest rate through the lender’s website with a soft credit check, which won’t hurt your credit score.
You don’t have to worry about application or origination fees or prepayment penalties.
Other terms and features
College Ave parent loans start at $2,000 and can cover up to 100 percent of the school’s cost of attendance. The lender also offers to send you up to $2,500 directly to cover other required expenses.
When it comes to repaying your loan, you can choose a term of five, six, seven, eight, nine, 10, 11, or 12 years. In addition to the lender’s initial payment options, this feature allows you more flexibility than many student loan companies offer.
However, if you can qualify for a lower interest rate elsewhere, it might be worth giving up some repayment flexibility.
3. Sallie Mae Parent Loan
If you need a smaller loan amount, Sallie Mae offers parent loans as low as $1,000 and up to your child’s school-certified cost of attendance. The lender also allows you to choose between an interest-only payment while your child is in school or a full payment from the get-go.
Interest rates and fees
Sallie Mae offers both variable and fixed interest rates. As of January 2018, you might qualify for a rate within the following ranges:
- Variable: 5.12% APR to 11.49% APR
- Fixed: 5.74% APR to 12.87% APR
The lender also offers a 0.25% interest rate reduction when you set up autopay, which isn’t reflected in these rates. Like the other lenders listed, Sallie Mae doesn’t charge an application or origination fee and won’t penalize you for paying off your loan early.
Other terms and features
One drawback to the Sallie Mae parent loan is that it doesn’t allow you to pre-qualify with a soft credit check. That means you have to apply to find out what kind of rate you’d qualify for.
If you’re concerned about inquiries on your credit report, Sallie Mae might not be the best fit.
You also have only one choice for your repayment period: 10 years. Of course, you can pay off the loan earlier if you wish, but you have less flexibility when determining your monthly payment.
4. Citizens Bank Student Loan for Parents
If you’re already a Citizens Bank customer, applying for its student loan for parents could score you a lower interest rate.
In addition to its 0.25% interest rate reduction for signing up for autopay, the bank also offers an extra 0.25% discount if you have a qualifying account when you apply for the loan.
Interest rates and fees
Unlike the other student loan companies on our list, Citizens Bank doesn’t offer variable interest rates for its parent loan.
As of January 2018, its fixed interest rates range from 6.64% APR to 7.24% APR. Note that these rates include the full 0.50% rate reduction for the loyalty and autopay discounts.
Citizens Bank doesn’t charge any application or origination fees, and there’s no prepayment penalty.
Other terms and features
With Citizens Bank, you can choose between a five-year and 10-year repayment plan. You also can choose to pay interest only while your child is in school or start making full payments immediately.
Also, like Sallie Mae, Citizens Bank doesn’t allow you to see your interest rate offer until you officially apply. That can make it harder to shop around.
Which private student loans for parents are best?
Out of all the student loan companies that offer parent loans, there’s no one best lender for everyone. Each lender has different features and criteria for determining your loan terms. While one might offer lower interest rates, that doesn’t mean you’ll qualify for them.
To make sure you get the best deal on your parent loan, shop around and compare different companies and what they have to offer. For companies that offer pre-qualification, fill out the application to get an idea of what interest rate you’d qualify for. As you do this with several companies, you’ll have a better idea of which loan is best for you.
Interested in a personal loan?
Here are the top personal loan lenders of 2018!| Lender | APR Range | Loan Amount | |
|---|---|---|---|
1 Includes AutoPay discount. Important Disclosures for SoFi. SoFi Disclosures
2 Includes AutoPay discount. Important Disclosures for Payoff. Payoff Disclosures
3 Important Disclosures for FreedomPlus. FreedomPlus Disclosures
4 Important Disclosures for Citizens Bank. Citizens Bank Disclosures
5 Important Disclosures for LendingPoint. LendingPoint Disclosures
6 Important Disclosures for LendingClub. LendingClub DisclosuresAll loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer. 7 Important Disclosures for Earnest. Earnest Disclosures
8 Important Disclosures for Avant. Avant Disclosures* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC. ** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33 * Important Disclosures for Upgrade Bank. Upgrade Bank Disclosures* Your loan terms are not guaranteed and are subject to our verification and review process. You may be asked to provide additional documents to enable us to verify your income and your identity. This rate includes an Autopay APR reduction of 0.5%. By enrolling in Autopay your payments will be automatically deducted from you bank account. Selecting Autopay is optional. Annual Percentage Rate is inclusive of a loan origination fee, which is deducted from the loan proceeds. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. All loans made by WebBank, member FDIC. Please refer to Upgrade’s Terms of Use and Borrower Agreement for all terms, conditions and requirements. ** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days. |
|||
 | 7.73% – 29.99% | $1,000 - $50,000 | Visit Upstart |
 | 5.81% – 15.37%1 | $5,000 - $100,000 | Visit SoFi |
 | 6.87% – 35.97%* | $1,000 - $50,000 | Visit Upgrade |
 | 8.00% – 25.00%2 | $5,000 - $35,000 | Visit Payoff |
 | 4.99% – 29.99%3 | $10,000 - $35,000 | Visit FreedomPlus |
 | 5.99% – 18.99%4 | $5,000 - $50,000 | Visit Citizens |
 | 15.49% – 34.49%5 | $2,000 - $25,000 | Visit LendingPoint |
 | 6.16% – 35.89%6 | $1,000 - $40,000 | Visit LendingClub |
 | 5.49% – 18.24%7 | $5,000 - $75,000 | Visit Earnest |
 | 9.95% – 35.99%8 | $2,000 - $35,000 | Visit Avant |