Best student loans for parents

In need of a student loans for parents? Here are the best students loans options available for parents click here and apply for the one which suits you the most.

Updated by Roopsi Gupta on 14th October 2019

With the never ending hunger for education not only in students but also in the parents is creating a massive change & over involvement in their child’s education. This is a good step but what hinders them is how they are going to pay the fees for their child, this creates a financial pressure on the parents which may end up on emptying their bank accounts.

We will discuss about the specifically designed parent student loans which not only helps the child to avoid the trap of student loan debt but also give parents more control over the debt in hand.

Table of Contents

Types of Student Loans For Parents

Here are few options to be looked at to give an ease to parents to frame their child’s education & secure the future altogether. They are as follows-

Federal PLUS Parent Loans

These are the loans which the federal government provides to either students or their parents to pay out the college education cost. These loans are available on lower interest rates than the private loans. The various terms and conditions are decided by law & offers more benefits to the borrower. 

This also includes the Federal PLUS Parent Loans, as the name suggests PLUS(some benefit attached to it), is the kind of a Federal Student Loan for parents which are financed & disbursed by the US Department of Education.

  • The lender is the US Government 

  • Offer a fixed rate of 7.08% which is highest in all types of Federal Loans available

  • Being its biggest point of notice, it charges very high origination fees of 4.236% that combined and increases the total cost of that particular loan.

  • A good credit score is the other requirement for taking such loans

  • One must fill the FAFSA form to check for the amount which is available to be given in terms of loan

  • If you are a government worker or related to a 501(c) (3) non-profit & interested in pursuing a public service loan forgiveness, go for a PLUS loan

  • The student should be a dependent undergraduate with at least half time at an eligible college

  • No adverse credit history will be considered to grant these loans

  • The maximum amount which will get sanctioned in the PLUS loan is the cost of attendance minus any other financial aid received.

Private Parent Student Loans 

When banks, credit unions, institutions provide loan facility to help cover college expenses this loan used in the facilitation is referred to as a private loan. They are generally given to the students name so that they can repay it afterwards. Best Student Loans for 2019 are Citizens Bank, CommonBond, Discover, Earnest, etc.

It is necessary to keep an eye on from where the loan is taken. If the loan is taken from any private sources than proper budgeting should be done. The parents can help their children in deciding the amount of loan necessary and can also help in paying off the loans, if required.

No student can become the borrower & private lenders offer this loan service to the parents.

  • Defer payments are allowed (if the child is in school)

  • Rates can either be fixed or variable according to the circumstances

  • They are also non-subsidized loans

  • Either credit score or a cosigner is required

  • Consolidation is not allowed but loans can be refinanced 

  • Postponing or lower the interest is on the discretion of the lender

Cosigned Private Student Loans

Parents being the cosigner of the debt, the college student takes the loan & called as Borrower.

  • The borrower is the child & parents are cosigner

  • Credit scores are mandatory to check your eligibility

  • Interest can be tax deductible

  • If the borrower will not pay then the debt is to be settled by the cosigner

  • Option for temporarily postponing the interest payments or lower them up is also there

Best Private Loans Available for Parents in 2019

From the pool of so many options, it’s important to choose the best options in time available for the students & parents to go for. Here are some top options in the market for which the borrowers can go for

1 - Citizens Bank Student Loans for Parents

Citizens bank is a bank from long time but the loan market is a new place for them to work at. But being new does not stop it from working good by offering lower fees, competitive rates & a variety of options. They have a 36 months exact payment deal to release the borrower from a cosigner. If the borrower is paying before date, for sure no charges will be creating on their name. 


  • Loans are available both on fixed and variable rates

  • 0.50% discount on rates can be offered

  • Loans are free from any origination fees or prepayment penalties

  • Term of loans can be 5 years or 10 years

  • The amount of loan can go upto $350,000 or the certified cost of attendance

  • Interests to be paid in school or immediate repayment options are available


  • Person should be a permanent US resident

  • Should have a good credit score or a qualified co-signer

  • Should not be having any defaults on loans

  • In an eligible institution, the student should be enrolled in half time degree- granting program 


  • Fixed rate- 5.48% - 8.52%

  • Variable rate- 4.79% - 7.93%

2- College Ave Parent Loan

 College Ave are the easy and straightforward loans for undergraduates, graduates & to parents also. It has only three minutes application completion procedure and has no early payoff fees being charged. Cosigner release option is also available but what they do not offer is a uniform forbearance option, again it depends upon a case to case basis.  


  • Loans are available both on fixed and variable rates

  • 0.25% discount on rates after autopay enrollment

  • Loans are free from any origination fees or prepayment penalties

  • Term of loans can be 5 years to 15 years

  • The amount of loan can be from $1000 up to certified cost of attendance

  • Disbursement can be done up to $2500 directly to the parent for out of pocket expenses

  • Lower payments in schools or immediate repayment options are available


  • Students must have a valid US social security number 

  • International students should be required to apply with a qualified cosigner 


  • Fixed rates- 5.96%-11.91%

  • Variable rates- 5.23%-11.76%

3- Sallie Mae Parent Loan

Sallie Mae is marked as one of the biggest student lenders today, it offers loans on fixed and variable rates as well. Like the other loans it also provides loan to undergraduates & graduates. The key difference is it even offers loans for K-12, if you want to send your kids to a private school. They have a quality that if the borrower has done 12 on-time payments, then they can easily get released from the co-signer clause & can continue with the loan on their own.


  • Loans are available both on fixed and variable rates

  • 25% discount on rates after autopay enrollment

  • Loans are free from any origination fees or penalties for prepaying

  • Term of loans is 10 years for parents

  • The amount of loan can be from $1000 up to certified cost of attendance

  • Interest only option is available till 48 months after the enrollment

  • Spouses & other student benefactors can avail the loan apart from parents

  • FICO credit score can be updated freely every quarter


  • Fixed rates- 5.49%–12.87% APR

  • Variable rates- 5.49%–12.12% APR 

4- Wells Fargo Parent Loan

The Wells Fargo loan is planned in a way to make the students pursue their studies without worrying about from where are they going to get their finances done. Not only it offers this to parents and family but it’s also available for friends. The interest rates can get lower if the borrower avails the different discounts available while going for this loan. 


  • Loans are available both on fixed and variable rates

  • Combined discount on rate p to 0.50% is offered for enrolling in autopay & wells fargo checking account 

  • Loans are free from any origination fees or penalties for prepaying

  • Term of loan is 15 years

  • The loan amount can go upto $25000 per annum & has a life time limit of of $100,000

  • 48 months of interest payments can be made if the child is enrolled at least half time


  • It should be for the benefit of the student enrolled as a graduate or undergraduate student from an eligible institution

  • The credit, debt to income & other requirements should be met accordingly

  • The person must be a citizen of the US or is a permanent resident


  • Fixed rate- 6.74%-12.99% 

  • Variable rate- 5.99%-12.49%

5- Credible

Being amongst the best loan options, the important quality of Credible loan is that at one time they provide a brief comparison on various parameters for upto 8 different lenders. This not only saves time and money but also helps in doing shopping around you for the best loans as per your requirement. The other competitive lenders make their own comparison rate & present it to you but at Credible you can find the competitive rate with respect to the market.


  • Loans are available both on fixed and variable rates

  • Loans are free from any origination fees or penalties for prepaying

  • No service fees are charged

  • It lets you compare different details from multiple lenders 

  • Provide with clear comparison between different competitors available


  • Fixed rate- from 4.40%

  • Variable rate- from 3.17%

Comparison of Parent Student Loans

After having a glimpse of the different types of loans available, here is a brief comparison of the types of loans-

Loan Variable cost Fixed cost Origination fee Term of loan In- school repayment
N/A 7.08% 4.24% 10-25 years Immediate or
full deferment
Bank Parent
4.79% - 7.93% 5.48% - 8.52% None 5 or 10 years Interest only or full payments
Ave Parent
5.23% - 11.76% 5.96% - 11.91% None 5 – 15 years Interest only, partial, or full payments
Mae Parent
5.49% - 12.12% 5.49% - 12.87% None 10 years Interest only or full payments
Fargo Parent
5.99% - 12.49% 6.74% - 12.99% None 15 years Payments only when funds are disbursed
Credible 3.17% 4.40% None Depends on the loan taken Based on the loan taken

Precise summary of the present lenders in the market with their basic features & details related to it are mentioned in the table that can help in making the decision better.

Basis to Choose the Right Private Parent Student Loans

To get along with any option, there are certain features to be considered, which can help parents better in taking any decision further. 

  1. Interest Rate

    Interest rate being as a key factor, it is necessary to compare rates for the available types of loans and opt for the one which can minimize the debts with. Like credible from the table being the most dynamic loan available in terms of interests.

  2. Loan Fees

    Keep an eye on Annual Percentage Rate (APR) & compare it surely  as it gives the full cost of the loan including any fee like student loan origination fees. Only the Federal PLUS loan charge fixed fees of 4.234%, no private lenders charge any fee for it. 

  3. Loan Type

    It is upon the parents if they want to shift the loan to their child’s stake or they want to be the borrower for their own. There are student loans for parents exclusively available. They can be Federal Loans by government, then subsidized loans available according to your financial requirement, PLUS loans are available as per the credit score of the individual. 

  4. Credit Score

    Your creditworthiness is so important to apply for any loan for students, it is not good then maybe the parents need to have a cosigner for taking it. FICO score should be outstanding to go for a student loan for parents. A good FICO score is around 700 or higher, if the lower rates can get qualified by the borrower then easily they can save on loan fees & interests.

  5. Debt to Income Ratio

    An ideal debt to income ratio should be 35% or below which signifies that you can borrow more & it becomes easier for lenders to sanction the loan. The borrower’s front-end DTI should be fair enough so that the lender can rely upon the capability to pay the present debts as per their income.

Options for Parent Student Loan Repayment

There are a variety of repayment options available, it is upon the discretion of parents & the child that they want the repayment to start when they are in school or there are plans which allow you to pay when the child is out of school. It's important to know your feasibility and go for the best suitable option available for you.

Refinancing - There are several options of refinancing which are also available that can help the parents & the child to repay their loans accordingly. It is possible only when the child agrees to it. However, this funding of education is found invaluable in certain terms as parents feel more like a burden to the child’s financial health.

For example, to make repayments in Federal PLUS Loan, the payments can be deferred if the child is in school or fully monthly payments can get started soon after the loan is taken. Like in Citizens Bank Loan can be repaid by making interest only payments when the child is in school or can make full payments easily. And in case of Sallie Mae’s Loan, the repayment cycle works like can do interest payments till 48 months or begin making full payments immediately.


The ultimate goal for providing the student parent loans is to borrow the funds and provide an aid to students so that the finances for the time being can be managed and the student can focus on making  their career. Also the parents can be the part of their child’s career to make it better.