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Parent PLUS loans are federal student loans that are issued to parents. Parents looking to borrow money for their child’s education can also look to private loans offered by banks and online lenders. Private loans generally don’t come with fees, unlike federal parent PLUS loans.
If you have solid finances and expect to be able to work the entirety of your loan term, a private student loan may be a better deal. Private student loans often offer lower interest rates and typically don’t have origination fees.
If your finances are solid, but you foresee an impediment to your ability to work during your loan term, look for a loan with safety nets that are relevant to your situation. The PLUS loan offers an income-based repayment option and extends death and disability discharges to the parent borrower. A few private loans may also offer the death and disability discharge, like ISL Student Loans, or income-based repayment, like RISLA student loans.
If you are building your finances and don’t meet private loan requirements, a PLUS loan is likely best for you as they don’t have strict credit requirements.
If you decide to move forward, here are our picks for the best parent student loans and information on financing your child’s education.
Parent PLUS loans are federal student loans that are issued to parents. Parents looking to borrow money for their child’s education can also look to private loans offered by banks and online lenders. Private loans generally don’t come with fees, unlike federal parent PLUS loans.
If you have solid finances and expect to be able to work the entirety of your loan term, a private student loan may be a better deal. Private student loans often offer lower interest rates and typically don’t have origination fees.
If your finances are solid, but you foresee an impediment to your ability to work during your loan term, look for a loan with safety nets that are relevant to your situation. The PLUS loan offers an income-based repayment option and extends death and disability discharges to the parent borrower. A few private loans may also offer the death and disability discharge, like ISL Student Loans, or income-based repayment, like RISLA student loans.
If you are building your finances and don’t meet private loan requirements, a PLUS loan is likely best for you as they don’t have strict credit requirements.
If you decide to move forward, here are our picks for the best parent student loans and information on financing your child’s education.
Best Parent Loans for College: Parent PLUS and Private
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editorial team. The scoring formulas take into account multiple data points for each financial product and service.
Federal parent PLUS loans have fixed interest rates and minimal fees. Parent borrowers must not have any adverse credit history to qualify.
Federal Parent PLUS Loan
NerdWallet’s ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Federal PLUS loans are available to parents of undergrads as well as graduate students. They are best for parents who may need the safety net they offer, and for grad students who have hit limits on lower-interest unsubsidized loans.
Borrowers with adverse credit history can still receive a parent PLUS loan by enlisting a co-signer without adverse credit history or documenting extenuating circumstances for their credit history.
Sallie Mae Private Student Loan
NerdWallet’s ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Lowest rates shown include the auto debit. Additional information regarding the auto debit discount: The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment, if available for the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRS assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. Advertised ount cannot exceed the cost of attendance less financial aid received, as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount. Examples of typical transactions for a $10,000 Smart Option Student Loan with the most common variable rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 6.88% APR, 51 payments of $, 119 payments of $ and one payment of $ for a total loan cost of $18,. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. Variable rates may increase over the life of the loan.
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