Our Top Parent Plus Refinancing Options of 2025

Refinancing Parent PLUS Loans

A good education is often at the top of a parent's list of what they want for their kids. And while your child deserves the benefits of the Parent PLUS loan you cosigned on, the loan will remain with you after graduation. 

If you have good credit and can qualify for reasonable interest rates, refinancing your Parent PLUS loan may end up saving you a bundle. Perhaps your child is now working and wants to help pay off the loan in their own name, or you’re looking for a longer loan term and smaller monthly payment. Whatever the reason, it’s possible, and often very advantageous to get some refinance rate quotes and explore your options. 

If you do choose to refinance your parent student loans, you’ll be replacing your government-backed loan with a loan from a private lender. This means that you’ll no longer qualify for income-based repayment plans or loan forgiveness. However since most Parent PLUS borrowers don’t qualify for loan forgiveness (only some teachers, public service workers, nurses, and non-profit or low income employees), this may be perfectly fine for you. Check your balance, then check your refinance loan options. 

Our Top 3 Parent PLUS Refinance Lenders

1. Credible

• Great for: Comparing multiple lenders
• APR: Varies by lender
• No origination fees
• Multiple repayment options

Credible aims to make it easier for you to pay back your child’s education, with multiple repayment options and no prepayment fees. You can choose loan terms of 5 to 15 years, depending on the lender, with loan amounts that are sure to cover your original Parent PLUS loans. Compare on Credible’s site in just 2 minutes, then apply on the lender’s website. Once you’re approved, funds can be disbursed in as little as 1 business day. Some lenders offer grade periods and deferment to help you through the bumps in the road. This is a 100% free comparison service, and Credible is so sure you’ll find the best rates with it, that you’ll receive $200 if you find a better rate elsewhere, with the Better Rate Guarantee. If you have other loans you’d like to refinance, Credible also offers personal loans, credit cards, and mortgage refinance comparisons. Some lenders will also let you refinance your Parent PLUS loan and hand it off to your child, now that they’re working and have established credit and income. 

2. SoFi®

• Great for: Fast online approval
• APR:
  5.99% - 9.99% (with all discounts) variable,
  4.49% - 9.99% (with all discounts) fixed
• Loan deferment options for borrowers in graduate school
• Available in 50 states and Washington D.C. 

3. Splash Financial

• Great for: Customer satisfaction
• APR:
  5.28% - 10.24% variable,
  4.99% (with autopay) - 10.24% (without autopay) fixed 

Splash Financial sees itself investing in young professionals. You can refinance almost any type of qualifying student loan, including parent loans, graduate school, medical school and undergraduate loans. It has a 95% satisfaction rating based on internal customer surveys and a comprehensive FAQ section. Refinancing student loans (and Parent PLUS loans) is the only thing Splash does, with a razor sharp focus. Splash works with banks an credit unions to offer you the lowest rates. Depending on the lending partner, it’s possible to release a cosigner from your loan when you refinance. Quickly check the status of your loan on the Splash account dashboard, which saves your documents and status and is available anytime. 

Choosing a Refinance Parent PLUS Lender

Each lender will have certain loan amount limits, from minimum amounts of $10,000 to $15,000, to maximum amounts as high as $300,000 to $500,000. If you’ve only got $7,000 in Parent PLUS loans, or if you have an exceptionally large amount, look for lenders that specifically state those numbers within their limits. Lenders will also only accept certain credit scores, so if you’ve got a fair or poor credit rating, you may want to work on improving it before applying. If it can’t wait, some lenders will accept credit scores that others won’t. You will also likely need a minimum income, ranging from $40,000 to $60,000, depending on the lender. Look around to find a lender with qualifications you know you can meet. 

Take a look at the private refinance lenders’ flexibility. Will you be able to transition the loan to your child’s name? Is there any allowance for deferment or delayed payment during hardship? What’s the procedure if you need to skip a payment? Some lenders have great benefits, knowing that sometimes we all just need a bit of leeway, but others are more strict on steady monthly payment. No matter what, you’ll need to pay back the loan, but a lender that works for you can make things significantly smoother when trouble hits. 

When Refinancing May Not Be Ideal: Parent PLUS Loan Forgiveness

Unfortunately, Parent PLUS loans don’t offer the same generous loan forgiveness programs that other federal student loans (like Graduate PLUS loans) do. However, there are still some programs available to certain professionals, and if you qualify, refinancing may not be your best bet. 

1. Employment based forgiveness for public sector or non-profit employees. 

If you work for a qualifying employer, you may be eligible for the Public Service Loan Forgiveness (PSLF) Program, after paying 120 payments under a qualifying repayment plan. Such professions are generally places that really serve the public welfare and have high need, due to low salaries or undesirable locations. Look into this if you work for a 501(c)(3) entity. In order to qualify for this, you will need to have already consolidated your Parent PLUS loans into the William D Ford Direct Loan program, and be on an income-contingent (ICP) plan for 120 months. 

2. Loan forgiveness for qualifying teachers, nurses, doctors, lawyers, and more.

Loan Repayment Assistance Programs (LRAPs) are often sponsored by universities and state legislatures, serving as an incentive for these highly needed professionals to work for the public good in high-need professional environments. Each program has unique qualifications, so examine these carefully if you think they may be for you.

3. Disability or death discharge 

Hopefully you won’t need this one, but if the parent or graduate died while paying off a Parent PLUS loan, the loan may be eligible for a death discharge with a certified copy of the death certificate. Similarly, if the parent becomes permanently and totally disabled, they are eligible to have their Parent PLUS loan discharged. Since it is the parent’s loan, not the student’s, it is the parent who will need to prove disability. 

4. Bankruptcy (Chapter 7)

If you are planning to file Chapter 7 bankruptcy, and you can prove that paying off the Parent PLUS loan is causing “undue hardship,” you may be able to have the loan discharged. Speak to a bankruptcy lawyer if you are considering this option. 

Refinancing Parent PLUS Loans In Your Child’s Name

It’s no loan forgiveness option (though you get to maintain your health and credit standing with this one), but if your child is a successful professional and you are nearing retirement and facing medical bills or a reduced income, you entreat your child to refinance your loan into their name. Not every lender works with this type of refinancing, and you’ll need to go through a private lender. Your child would also need to meet the credit requirements on their own, without your solid credit history to back the loan. Your child will pay the loan at much better interest rates than what you’d pay for the Parent PLUS loan, but will take on the burden of this debt. 

Applying for Your Parent PLUS Loan

Once you’ve calculated the total amount of loan you want to refinance and compared and selected the lender with the best rates and terms for you, it’s time to apply for a loan. You’ll need to be a US citizen or permanent resident with good to excellent credit to qualify. Be sure the amount you need is within the lender’s requirements, and fill out the loan application. Some lenders will offer a quick, 3-5 minute pre-qualification application, where you can lock in your rate quote while you continue searching for the right lender for you. If you’re ready, the online application process will perform a hard credit pull and typically takes 10 to 15 minutes, with questions about your financial stability and employment status.

Disclaimers 

† Credible Terms and Conditions:

Close with a better rate than you prequalify for on Credible and get a $200 gift card. Terms Apply.

The lenders on the Credible.com platform offer fixed rates ranging from 3.99% - 11.09% APR. Variable interest rates offered by the lenders on Credible.com range from 4.31% - 12.05% APR. Variable rates will fluctuate over the term of the borrower's loan with changes in the Index rate. The Index will be either LIBOR, SOFR, or the Prime Rate of interest as published in the Wall Street Journal (WSJ). The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%.

Rates are subject to change at any time without notice. Your actual rate may be different from the rates advertised and/or shown above and will be based on factors such as the term of your loan, your financial history (including your cosigner’s (if any) financial history) and the degree you are in the process of achieving or have achieved. While not always the case, lower rates typically require creditworthy applicants with creditworthy cosigners, graduate degrees, and shorter repayment terms (terms vary by lender and can range from 5-20 years) and include loyalty and Automatic Payment discounts, where applicable. Loyalty and Automatic Payment discount requirements as well as Lender terms and conditions will vary by lender and therefore, reading each lender’s disclosures is important. Additionally, lenders may have loan minimum and maximum requirements, degree requirements, educational institution requirements, citizenship and residency requirements as well as other lender-specific requirements.

Splash Financial Disclaimer:

*Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Products may not be available in all states. Rates and terms are subject to change at any point prior to application submission. The information you provide is an inquiry to determine whether Splash’s lending partners can make you a loan offer. To qualify, a borrower must be a U.S. citizen or other eligible status and meet lender underwriting requirements. Lowest rates are reserved for the highest qualified borrowers and may require an autopay discount of 0.25%. Splash does not guarantee that you will receive any loan offers or that your loan application will be approved. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, creditworthiness, income and other factors. This information is current as of July 17, 2024. You should review the benefits of your federal student loan; it may offer specific benefits that a private refinance/consolidation loan may not offer. If you work in the public sector, are in the military or taking advantage of a federal department of relief program, such as income-based repayment or public service forgiveness, you may not want to refinance, as these benefits do not transfer to private refinance/consolidation loans.

Fixed APR: Annual Percentage Rate (APR) is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed rate options range from 4.99% (with autopay) to 10.24% (without autopay) and will vary based on application terms and level of degree.

Variable APR: Annual Percentage Rate (APR) is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Variable rate options range from 5.28% to 10.24% (without autopay) and will vary based on application terms and level of degree. Variable APRs and amounts subject to increase or decrease.

**Repayment examples are for illustrative purposes only. Loans feature repayment terms of 5 to 20 years. For example, if you receive a $10,000 loan with a 15-year repayment term and an 8.50% APR, you would have a required monthly payment of $98.47. Late payments or subsequent charges and fees may increase the cost of your loan.

See additional disclaimers at: https://www.splashfinancial.com/disclaimers/ Splash Financial, Inc. (NMLS #1630038), licensed by the DFPI under California Financing Law, license # 60DBO-102545

SoFi Student Loan Refinance Disclaimer:

Fixed rates range from 4.49% APR to 9.99% APR with 0.25% autopay discount and 0.125% SoFi Plus discount. Variable rates range from 5.99% APR to 9.99% APR with 0.25% autopay discount and 0.125% SoFi Plus discount. Unless required to be lower to comply with applicable law, Variable Interest rates will never exceed 13.95% (the maximum rate for these loans). 

SoFi rate ranges are current as of 11/30/24 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers.

For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. You may pay more interest over the life of the loan if you refinance with an extended term.

Autopay Discount: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will be removed during periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi. 

SoFi Plus Discount: To be eligible to receive an additional (0.125%) interest rate reduction on your Student Loan Refinancing (your "Loan") for enrolling in SoFi Plus, you must enroll in SoFi Plus within 30 days of Loan funding, either by receiving an Eligible Direct Deposit to your SoFi Checking and Savings account, or by paying the SoFi Plus Subscription Fee. Once eligible, you will receive this discount during periods in which you have received Eligible Direct Deposit to your SoFi Checking and Savings Account, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. 

This discount lowers your interest rate but does not change the amount of your regular monthly payment. This discount will be removed during periods in which SoFi determines you have turned off Eligible Direct Deposit to your Checking and Savings account or in which you have not paid the SoFi Plus Subscription Fee. SoFi reserves the right to change or terminate this interest rate reduction offer for unenrolled participants at any time without notice. You are not required to enroll in Eligible Direct Deposit or to pay the SoFi Plus Subscription Fee to be eligible for Loan approval. See what qualifies as an Eligible Direct Deposit here: www.sofi.com/terms-of-use/#slr-discount

 Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

*Earnest Disclaimer:

Earnest allows you to refinance incomplete bachelor's or associate's degrees if:

• Your last attending date was over 6 years ago
• Your credit score is 650+ 
• The school you attended was not a for-profit school

Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.24% APR to 10.74% APR (excludes 0.25% Auto Pay discount). Variable rates range from 6.13% APR to 10.74% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. The maximum rate for your loan is 8.95% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account.

NaviRefi Disclaimer:

You can choose between fixed and variable rates. Fixed interest rates are 5.21% - 9.99% APR (4.96% - 9.74% APR with Auto Pay discount). Starting variable interest rates are 5.97% - 9.99% APR (5.72% - 9.74% APR with Auto Pay discount). Variable rates are based on an index, the 30-day Average Secured Overnight Financing Rate (SOFR) plus a margin. Variable rates are reset monthly based on the fluctuation of the index. We do not currently offer variable rate loans in AK, CO, CT, HI, IL, KY, MA, MN, MS, NH, OH, OK, SC, TN, TX, and VA.

Loan cost examples: These examples provide estimates based on payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 20-year term (240 monthly payments of $85) and a 8.24% APR would result in a total estimated payment amount of $20,434. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 20-year term (240 monthly payments of $85) and a 8.24% APR would result in a total estimated payment amount of $20,434. Your actual repayment terms may vary.

*Laurel Road Disclaimer:

Terms and Conditions Apply. Rates as of 01/09/2025. Rates subject to change and all products subject to credit approval.

IMPORTANT INFORMATION: Please note that if you refinance qualifying federal student loans with Laurel Road, you may no longer be eligible for certain federal benefits or programs and waive your right to future benefits or programs offered on those loans. Examples of benefits or programs you may not receive include, but are not limited to, Public Service Loan Forgiveness, Income-driven Repayment plans, forbearance, or loan forgiveness. Please carefully consider your options when refinancing federal student loans and consult StudentAid.gov for the most current information.

Citizens Disclaimer:

1. Student Loan Rate Disclosure: Variable interest rates range from 6.14% - 12.05% (6.14% - 12.05% APR). Fixed interest rates range from 5.90% - 11.09% (5.90% - 11.09% APR).

2. Get My Rate: Selecting “Get My Rate” only requires a “soft credit pull” which does not affect your credit score. Submitting a full application will result in an inquiry on your credit report.

3. Citizens Undergraduate Booked Loans from 10/1/2023 through 9/30/2024 were 4 times more likely to be approved with a qualified cosigner.

4. Multi-Year Approval: Funds available for future use are subject to a soft credit inquiry at time of your next request to verify continued eligibility. After we make the initial Loan to you, you must continue to meet eligibility criteria to obtain additional funds under the Multi-Year Approval feature.

Terms and conditions are outlined in the promissory note. Multi-Year Approval borrowers have a 99% approval rate on future requests for additional funds. The additional funds approval rate is based on the percentage of approved Multi-Year borrowers from Citizens between October 1, 2023 and October 1, 2024. The approval rate represents only borrowers who had previously accepted the Multi-Year Approval offer. Please Note: International students are not eligible for Multi-Year Approval.

Get My Rate: Selecting “Get My Rate” only requires a "soft credit pull" which does not affect your credit score. Submitting a full application will result in an inquiry on your credit report.

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