8 Best Parent Loans For College
As college tuition skyrockets, more parents are stepping in to help foot the bill. But with so many loan options out there, choosing the best one can feel like finding a needle in a haystack.
Whether you’re looking for low-interest rates, flexible repayment plans, or no hidden fees, we’ve got the scoop on some of the best parent loans for college.
1. Federal Direct PLUS loans / Parent PLUS loans
The Federal Direct PLUS Loan, also known as the Parent PLUS Loan, is a federal loan offered to parents of dependent undergraduate students. It allows parents to borrow up to the full cost of attendance, minus any other financial aid received. This loan is popular for its flexible repayment options and fixed interest rate, making it a reliable choice for many families.
Minimum credit score: No specific minimum, but credit check required
Fixed APR: 8.94%
Variable APR: N/A
Pros: | Cons: |
|---|---|
• Borrow up to the full cost of attendance • Multiple repayment options • Fixed interest rate | • Origination fee • No grace period • Credit check required |
2. Sofi® Parent Loan
SoFi is a well-known online lender that offers private parent loans with competitive rates and benefits like unemployment protection. SoFi’s parent loan is designed to help parents finance their child’s education with no origination fees and the option to choose between fixed and variable rates.
Fixed APR: 4.12%-16.74%
Variable APR: 5.95%-16.73%
Pros: | Cons: |
|---|---|
• No origination fees • Unemployment protection • Competitive interest rates | • High minimum credit score requirement • No deferment options • Limited to online management |
3. College Ave Parent Student Loan
College Ave offers a range of student loan products, including parent loans. Their parent loan product is known for its flexible repayment options and quick approval process, making it a convenient choice for parents who need funds fast.
Fixed APR: 2.84%-17.99%
Variable APR: 3.89% – 17.99%
Pros: | Cons: |
|---|---|
• Flexible repayment terms • Quick approval process • No prepayment penalties | • Limited customer service availability • May require a co-signer • No fixed rate option for some terms |
4. Citizens Bank Parent Loan
Citizens Bank offers a parent loan with competitive fixed and variable rates. The bank is known for its strong customer service and offers a loyalty discount for existing customers, making it a popular choice for parents looking for personalized service.
Fixed APR: 5.45% – 10.46%
Variable APR: 4.86% - 10.54%
Pros: | Cons: |
|---|---|
• Loyalty discount for existing customers • Flexible repayment options • No application or origination fees | • No autopay discount • Limited to U.S. citizens and permanent residents • Requires a hard credit check |
5. Rhode Island Student Loan Authority (RISLA) Private Student Loan
RISLA offers a private parent loan with a focus on affordability and borrower protection. It provides fixed-rate loans and includes benefits like income-based repayment plans and interest rate reductions for automatic payments.
Minimum credit score: N/A
Fixed APR: Starts at 2.99%
Variable APR: N/A
Pros: | Cons: |
|---|---|
• Income-based repayment options • Interest rate reductions for autopay • Fixed interest rates | • Limited to Rhode Island residents or students attending Rhode Island schools • No variable rate option • Limited online account management |
6. INvestED Student Loan
INvestED offers a variety of student loan products, including parent loans. The organization provides competitive interest rates and various repayment options, making it a flexible choice for parents.
Fixed APR: 4.38% – 8.23%
Variable APR: 3.45% – 7.21%
Pros: | Cons: |
|---|---|
• Flexible repayment terms • Competitive rates • Educational resources and financial literacy tools | • Limited to families that live in Indiana or students attending Indiana colleges and universities • Requires a creditworthy co-signer in some cases • Limited deferment options • Higher rates for lower credit scores |
7. Advantage Education Loan Parent Loan
Advantage Education Loan offers a parent loan with no origination fees and competitive interest rates. This loan is a good option for parents who want to borrow up to the full cost of attendance without hidden costs.
Fixed APR: Starts at 3.18%
Variable APR: N/A
Pros: | Cons: |
|---|---|
• No origination fees • Borrow up to the full cost of attendance • Fixed interest rates | • No variable rate option • Requires strong credit for the best rates • Limited to residents of certain states |
8. ISL Private Student Loan
The ISL Private Student Loan offers parent loans with competitive fixed and variable rates. It includes options for interest-only payments during school and various repayment terms to suit different financial needs.
Minimum credit score: 650
Fixed APR: 2.70% – 8.70%
Variable APR: N/A
Pros: | Cons: |
|---|---|
• Interest-only payment options • Competitive rates • Multiple repayment terms | • Requires a co-signer for some borrowers • No deferment options • Limited availability |
How To Choose the Best Parent Loan For College
When selecting the best parent loan for college, it’s crucial to consider several factors.
Interest rates: Your interest rates determine the total cost of the loan over time. Look for the lowest possible rates, whether fixed or variable.
Repayment terms: They affect your monthly payments and the loan’s overall affordability. Some loans offer flexible terms, including income-driven repayment options.
Fees and additional costs: Be sure to check for origination fees, prepayment penalties and any other hidden charges.
Lender’s reputation and customer service: A reputable lender with strong customer support can make the borrowing experience much smoother.
If you’d rather have more flexibility with how you use your loan, a personal loan may be the best option for you! MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.
FAQs
What is a parent loan?
A parent loan is a loan taken out by a parent to help pay for their child’s education expenses.
What is the difference between a parent loan and a student loan?
A parent loan is borrowed and repaid by the parent, while a student loan is borrowed and repaid by the student.
What can Parent PLUS Loans be used for?
Parent PLUS Loans can be used to cover the full cost of attendance, including tuition, room and board, books and other education-related expenses.
How are Parent PLUS Loans disbursed?
Parent PLUS Loans are disbursed directly to the school, which applies the funds to tuition and other fees. Any remaining balance is refunded to the parent or student.
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