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Private Parent Student Loans

Several lenders offer private student loans for parents that are intended to compete with the federal Parent PLUS Loan. You can often find more competitive terms with private parent student loans, like lower fees and zero origination fees. But unlike traditional private student loans, where the student is the borrower and the parent is often a cosigner, parents are the primary borrower on a private parent loan.

Best Private Parent Student Loans

Sallie Mae Parent Loan

The Sallie Mae® Parent Loan offers zero origination fees, low starting interest rates, and flexible repayment terms. You can borrow up to the full cost of attendance, as certified by the financial aid office. Your child’s school must be degree granting.

College Ave Parent Loan

The College Ave Parent Loan gives you the option to receive up to $2,500 of your loan deposited in your bank account (the rest goes straight to the school). College Ave gives you fast credit decisions, competitive rates and zero origination fees.

Discover Parent Student Loan

Discover Parent Student Loans come with zero fees, including no application, origination or late fees. You can borrow up to the full cost of attendance, and your child must be seeking a degree.

Private Parent Student Loan Lenders

  • Interest Rates
    • Fixed as low as: 4.25% APR1
    • Variable as low as: 1.25% APR1
  • Interest Rates
    • Fixed as low as: 3.49% APR1
    • Variable as low as: 1.04% APR1
  • Interest Rates
    • Fixed: 4.24% APR - 12.99% APR3
    • Variable: 1.24% APR - 11.99% APR3

Parent Student Loan Interest Rates

When considering your options, it’s important to understand how interest rates are determined on private parent loans. Parent PLUS loans have fixed interest rates set by Congress each year. Private parent loans however, will be based on current market trends, your credit, debt-to-income ratio, and work history. In addition, private parent student loans will offer options between fixed and variable rates.

Although both the federal parent PLUS loan and a private student loan complete a credit check, the credit check for a private loan is far more in-depth. The federal program does not review credit score, debt-to-income ratio, or confirm work history, making it easier to qualify.

student loan interest rates for 2020

Benefits of Private Parent Student Loans

For the right borrower, a private parent student loan may offer a loan with a lower interest rate and no origination fee when compared to loans offered in the federal student loan program. Although it may not be a loan through the federal government, many private student loan lenders offer multiple repayment options, and loan discharge due to death or disability. If there are certain repayment terms you are looking for, make sure to read all the terms and conditions and contact your prospective lender to verify any details.

private student loans for parents compare lenders

Transfer Parent PLUS Loan to Student

Borrowing large amounts of money to help pay for your son or daughter’s education may have you looking ahead, such as considering whether you can transfer your parent loan to the student. We understand. And we’re excited to share that a number of lenders do offer the option for you to transfer the loan debt to your child. A new application will be required, and your son or daughter will need to demonstrate creditworthiness and proof of income to qualify. But there is light at the end of the tunnel when it comes to repayment options. If the lender you choose for your in-school private parent loan does not offer this service, not to worry. You’re free to shop around and choose a different lender when it’s time to refinance.

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