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Top Lenders to Consolidate and Refinance Parent PLUS Loans


We’ve written a lot about how college graduates can pay off their student loans faster or even refinance their loans. Now, we want to give some much needed airtime to parents. There is a population of student loan borrowers that is often not talked about: Parent PLUS loan borrowers.

Parent PLUS loans are taken out by parents to pay for their children’s education and come with a pretty hefty interest rate, which is currently at 7.21%. We hear a lot about how college graduates are affected by student loan debt, but not as much about how Parent PLUS loans affect parents.

Currently, there are 3 million Parent PLUS loan borrowers with a total of $62 billion in debt. Parent PLUS loans are not eligible for income-based repayment or forgiveness. Dealing with high debt loads and a high interest rate with parents nearing retirement age can be a tough combination.

Luckily, there is relief on the way. Many banks are starting to offer refinancing for Parent PLUS loan borrowers — big news, considering that parents could potentially save thousands of dollars in interest through refinancing.

Through refinancing, parents are eligible to get a better interest rate and not be stuck at the higher-than-average rate of 7.21%. Parent PLUS borrowers are typically attractive candidates for refinancing because they have a longer credit history and tend to have stable employment. Refinancing can be a great option for Parent PLUS borrowers to save money on interest.

Here are the top five banks for refinancing Parent PLUS loans:

1. SoFi

SoFi is changing the lending landscape. They originally started out with standard student loan refinancing and now have options to refinance Parent PLUS loans. In addition, they also offer personal loans and mortgage refinancing. They offer some interesting perks and support for borrowers as well.


  • Offers 5, 7, 10, 15 and 20 year repayment terms
  • Fixed rates: 3.37% APR to 6.74% APR (with autopay)
  • Variable rates: 2.56% APR to 6.49% APR (with autopay), capped at 8.95% to 9.95% APR
  • No application or origination fees
  • No prepayment penalties
  • Application looks at employment history, income, credit rating, and education
  • Nevada residents are not eligible for refinancing at this time, and variable rate loans are not available in Tennessee or Ohio
  • Offers career support, should you lose your job
  • Has a unique entrepreneur program for those who qualify
Learn More About SoFi

2. Darien Rowayton Bank

The Darien Rowayton Bank focuses on refinancing MBA, law, medical, and engineering degrees, among others. They also offer refinancing for Parent PLUS loans and state that a borrower with $100,000 could save more than $15,000 over the life of a 10-year loan.


  • Offers 5, 7, 10, 15 and 20 year repayment terms
  • Variable rates: 3.64% – 6.29% (with autopay)
  • Fixed rates: 4.20% – 7.20% (with autopay)
  • No origination fees
  • No prepayment penalties
  • Parents can refinance the loan in their own name or their child’s name
  • Child must be working and have completed their Bachelor’s or graduate degree
  • Offers a 0.25% interest reduction with autopay
  • Maximum variable rates capped at 9% for 5, 10, and 15 year terms. For 20 year term, maximum rate cap is 18% APR
Learn More About Darien Rowayton Bank

3. CommonBond

Do you want your refinancing with a side of philanthropy? CommonBond might be the best option for you. For each fully funded loan through CommonBond, the bank will fund the education of a student abroad for one year through their partner, Pencils of Promise. They also offer a unique approach to interest rates, offering fixed rates, and variable and hybrid rates.


  • Offers 5, 7, 10, 15, and 20 year repayment terms
  • Variable rates: 2.56% – 6.48% APR (with autopay)
  • Fixed rates: 3.37% – 6.74% APR (with autopay)
  • Also offers hybrid rate loans, which are a mixture of fixed and variable repayment terms, at 3.81% – 6.25% APR (with autopay)
  • No origination fee
  • No prepayment penalty
  • Offers unemployment protection, so you can postpone your payments if you lose your job
  • Will help you find a new job in case of job loss
  • For every fully funded loan, they will fund the education of a student in need abroad for one year
Learn More About CommonBond

4. Citizens Bank

Citizens Bank offers the Education Refinance Loan for federal and private student loans as well as Parent PLUS loans. If you have already consolidated your loan, you can still refinance with Citizens Bank for a better rate. You can refinance Parent PLUS loans with one of the oldest financial services firms in the United States.


  • Offers 5, 10, 15 and 20 year repayment terms
  • Variable rates: 2.59% APR to 8.38%4 APR (with autopay)4
  • Fixed rates: 4.74%4 APR to 8.24% APR (with autopay)4
  • No application fee
  • No origination fee
  • No prepayment penalty
  • You can receive an additional 0.25% interest deduction with autopay
  • Must have proof of income
  • Loans available from $10,000 to $170,000 depending on your education level
  • (See disclosure and repayment examples)
Learn More About Citizens

Refinancing often makes sense for Parent PLUS loan borrowers, as there is already a lack of repayment options such as income-based repayment and forgiveness.

Not only that, but Parent PLUS loan borrowers may have a higher chance of getting approved because of their credit history and employment status, which could mean thousands of dollars in savings.

Interested in refinancing your Parent PLUS loans?

Here are the top 6 lenders of 2017!
LenderRates (APR) 
Check out the testimonials and our in-depth reviews!
2.56% - 6.74%Visit SoFi
3.64% - 7.20%Visit DRB
2.56% - 6.74%Visit CommonBond
2.43% - 7.26%Visit LendKey
2.59% - 8.38%Visit Citizens
3.00% - 7.35%Visit CollegeAve
Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print, understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.

Published in Federal Student Loan Refinancing, Federal Student Loan Repayment, Parent PLUS Loans, Refinance Student Loans