Student loans 6 February 2023

10 Best Parent Private Student Loans Right Now

Here are the Best Parent Private Student Loans for you and your child, with advice on how to find and apply for one to fund your child's education as a parent.

Parent Private Student Loans

Table of Contents

Loans are a popular and convenient way for parents to help fund their child’s college education. With these loans, parents can borrow money at a fixed or variable rate to cover tuition, room and board, and other educational expenses.

There are usually two types of loans for parents – federal and private. The federal Parent PLUS loans are given by the government and parent private student loans are provided by private lenders and other financial institutions. Parents should exhaust all their federal options first before moving on to private loans.

We have provided a list of the best parent private student loans along with information on their interest rates, pros and cons, eligibility requirements, and repayment terms. The information provided will help you make an informed decision and help you choose the one that is best suited to your needs.

The 10 Best Parent Private Student Loans

LenderScholaroo ratingFixed rates starting (APR)Variable rates starting (APR)

College Ave

Best for Repayment Options

Visit website		4.8/53.993.99

Education Loan Finance

Best for Transparent Application Process

Visit website		4.7/54.484.98

SoFi

Best for Loans Without Credit Check

Visit website		4.5/56.505.74

ISL Education Lending

Best for no Late fee

Visit website		4.3/53.95N/A

A.M. Money

Best for Non-conventional Lending

Visit website		4.1/57.538.85

Brazos Parent Loan

Best Online Lender With the Lowest Fixed Rate

Visit website		4.1/52.705.07

Discover

Best for Private Parent Loan

Visit website		4/59.9910.62

Citizens Bank

Best for High Loan Amounts

Visit website		4/57.136.33

RISLA

Best for Loan Preapproval

Visit website		4/55.74N/A

INvestEd

Best for Indiana Residents

Visit website		4/54.607.37
Lender

College Ave

Best for Repayment Options

Scholaroo rating
4.8/5
Fixed rates starting (APR)
3.99
Variable rates starting (APR)
3.99
Visit website
Lender

Education Loan Finance

Best for Transparent Application Process

Scholaroo rating
4.7/5
Fixed rates starting (APR)
4.48
Variable rates starting (APR)
4.98
Visit website
Lender

SoFi

Best for Loans Without Credit Check

Scholaroo rating
4.5/5
Fixed rates starting (APR)
6.50
Variable rates starting (APR)
5.74
Visit website
Lender

ISL Education Lending

Best for no Late fee

Scholaroo rating
4.3/5
Fixed rates starting (APR)
3.95
Variable rates starting (APR)
N/A
Visit website
Lender

A.M. Money

Best for Non-conventional Lending

Scholaroo rating
4.1/5
Fixed rates starting (APR)
7.53
Variable rates starting (APR)
8.85
Visit website
Lender

Brazos Parent Loan

Best Online Lender With the Lowest Fixed Rate

Scholaroo rating
4.1/5
Fixed rates starting (APR)
2.70
Variable rates starting (APR)
5.07
Visit website
Lender

Discover

Best for Private Parent Loan

Scholaroo rating
4/5
Fixed rates starting (APR)
9.99
Variable rates starting (APR)
10.62
Visit website
Lender

Citizens Bank

Best for High Loan Amounts

Scholaroo rating
4/5
Fixed rates starting (APR)
7.13
Variable rates starting (APR)
6.33
Visit website
Lender

RISLA

Best for Loan Preapproval

Scholaroo rating
4/5
Fixed rates starting (APR)
5.74
Variable rates starting (APR)
N/A
Visit website
Lender

INvestEd

Best for Indiana Residents

Scholaroo rating
4/5
Fixed rates starting (APR)
4.60
Variable rates starting (APR)
7.37
Visit website

#1 College Ave

Apply now

The Best Parent Private Student Loans

Scholaroo Rating
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#2 Education Loan Finance

Best for Transparent Application Process

Apply now

Education Loan Finance

4.7
Scholaroo Rating
Apply now
Fixed Rates Starting (APR)4.48%
Variable Rates Starting (APR)4.98%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Why We Like It

Education Loan Finance, or ELFI, was launched in 2015 and is an affiliate of SouthEast Bank in Tennessee. It provides loans to both students and parents and has refinancing options too. Education Loan Finance offers trans[arent and straightforward application process that is easy to understand and follow.

Pros and Cons

Pros

  • Flexible repayment terms
  • No prepayment penalty
  • No application fees
  • No origination fees
  • Transparent and easy application process
  • Prequalification available
  • Multiple repayment options

Cons

  • Minimum credit score requirement of 680

Eligibility Requirements

  • Student must be enrolled at least half-time in a Bachelor’s, Master’s, or Doctoral degree program
  • Borrowers and cosigners must be U.S. citizens or permanent resident aliens
  • Borrower, or cosigner, must have a minimum credit score of 680
  • Dependent student shared a “principal place of abode” with Borrower for more than one-half of the taxable year
  • Dependent student is younger than the borrower
  • Dependent student is a U.S. citizen, national, resident of the U.S., or resident of a country contiguous to the U.S.

Repayment Terms

  • Repayment terms of 5, 7, and 10 years
  • 4 repayment options including immediate, interest-only, fixed, and deferred
  • Deferred payments allow 6 months grace period
  • Forbearance for up to 12 months in financial or medical hardship

#3 SoFi

Best for Loans Without Credit Check

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SoFi

4.6
Scholaroo Rating
Apply now
Fixed Rates Starting (APR)4.49%
Variable Rates Starting (APR)5.09%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Why We Like It

SoFi is a student loan provider that offers loans and refinancing options. They offer to refinance both private student loans and federal loans. SoFi offers customized rate estimates without affecting the borrowers’ credit. This lender is a good option for borrowers who wish to pay off their student loans quickly. They have an intuitive online application process and offer reward points that borrowers can use to pay down their loans.

Pros and Cons

Pros

  • Flexible repayment options
  • Prequalifies without a hard credit check
  • No fees
  • Offers career planning and helps in job searching

Cons

  • Minimum credit score needed

Eligibility Requirements

  • Borrowers must be a U.S. citizen and employed
  • Minimum credit score of 650
  • Parent must have an associate degree or higher

Repayment Terms

  • Multiple repayment options available (interest only, flat fee, and deferred)
  • In-school repayment options
  • Deferment options available for undergraduate and graduate borrowers
  • Loan term of five, seven, 10, or 15 years

#4 ISL Education Lending

Best for no Late fee

Apply now

ISL Education Lending

4.3
Scholaroo Rating
Apply now
Fixed Rates Starting (APR)3.95%
Variable Rates Starting (APR)N/A
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Why We Like It

Iowa Student Loan Liquidity Corporation or ISL Education Lending was established in 1979 and is a nonprofit corporation. ISL offers private loans to undergraduates, graduates, parents, and families and you can borrow up to the full cost of attendance. The do not charge any fee for late payments. They also offer refinancing options and scholarship programs.

Pros and Cons

Pros

  • Flexible repayment options
  • No origination, prepayment, or late fees
  • No-cosigner loans also available at a fixed rate
  • Can borrow up to the cost of attendance

Cons

  • Not available to international students
  • A minimum credit score of 660 for cosigned loans

Eligibility Requirements

  • The borrower must be of majority age at the time of application and a U.S citizen or permanent resident
  • Must not have defaulted on any private or government student loan
  • Must not have an active bankruptcy case.
  • Student must be attending any nonprofit, Title IV eligible, degree-granting, accredited college or university\
  • Student must be enrolled at least a half-time
  • Student must be making satisfactory academic progress in an eligible education program
  • Student must be a U.S. citizen or permanent resident residing in the United States.
  • Student must complete a Student Authorization Form

Repayment Terms

  • Immediate payment, interest-only payment, and deferred payment options are available
  • 10 or 15 years repayment terms

#5 A.M. Money

Best for Non-conventional Lending

Apply now

A.M. Money

4.1
Scholaroo Rating
Apply now
Fixed Rates Starting (APR)7.53%
Variable Rates Starting (APR)8.85%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Why We Like It

A.M Money makes loans accessible to students attending an A.M Money-approved school, so the school that the borrower plans to attend must be working in collaboration with the lender. A.M Money does not rely on the credit check and financial history of the borrower but mostly focuses on academic capabilities.

Pros and Cons

Pros

  • No application, prepayment, or late fees
  • Loans are based on academics
  • No cosigner is needed
  • Offers income-based repayment options

Cons

  • An origination fee of up to 4.5%

Eligibility Requirements

  • A minimum credit score of 540 and a minimum income
  • Have an above-average GPA
  • Attend an eligible school

Repayment Terms

  • Six months grace period
  • Full-in school deferment options available
  • Immediate repayment and post-school repayment options are available
  • Repayment terms of five to 15 years

#6 Brazos Parent Loan

Best Online Lender With the Lowest Fixed Rate

Apply now

Brazos Parent Loan

4.1
Scholaroo Rating
Apply now
Fixed Rates Starting (APR)2.70%
Variable Rates Starting (APR)5.07%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Why We Like It

Brazos Student Loans.com is a subsidiary of Brazos Higher Education Services Corporation and is an online lender. It has a convenient application process and one of the lowest starting fixed rates of 2.70%. Brazos Parent loan can be borrowed for undergraduate, graduate, medical, law, and other professional degree students.

Pros and Cons

Pros

  • Zero origination or prepayment fees
  • Accessible by a parent, grandparent, spouse, family member, or friend of the student
  • May borrow up to the Cost of Attendance
  • Multiple terms are available
  • Up to one year of hardship, forbearance is available in three-month increments

Cons

  • High minimum credit score requirement of at least 720 if applying independently
  • High minimum credit score requirement of 690 if applying with a cosigner
  • In-school deferment unavailable
  • No cosigner release

Eligibility Requirements

  • Must be attending accredited and eligible Title IV schools
  • Must be attending a 4-year degree-granting school that is a state or private nonprofit institution
  • Student must be enrolled at least half-time
  • Student must be enrolled in a degree-granting program.
  • The primary applicant must be a United States citizen or National, non-citizen with government-issued, non-expired documentation of permanent resident status.
  • A non-citizen with a work or student visa can apply with an eligible cosigner
  • Borrower must be a resident of the State of Texas
  • Borrower must be at least 18 years old
  • Borrower must have a minimum annual income of $60,000, or $30,000 if applying with a qualified cosigner
  • Borrower must have a FICO score of at least 720, or 690 if applying with an eligible cosigner
  • Borrower must have a strong credit history

Repayment Terms

  • Up to one year of hardship forbearance
  • Repayment begins approximately 30 days after the final disbursement
  • 5 – 20 years repayment terms

#7 Discover

Best for Private Parent Loan

Apply now

Discover

4
Scholaroo Rating
Apply now
Fixed Rates Starting (APR)9.99%
Variable Rates Starting (APR)10.62%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Why We Like It

The Discover parent loans are offered to parents or other creditworthy individuals taking out loans for their undergraduate or graduate students. The Discover loans are for borrowers with strong credit. Although aggregate loan limits apply, the minimum amount for each loan is $1,000. Parents can apply in minutes, set up their loan terms, and receive their funding online. Loan amounts are certified before disbursement through the school so that parents do not borrow more than they need.

Pros and Cons

Pros

  • International students can apply
  • No late fees
  • Can borrow up to 100% of the school-certified cost of attendance
  • 0.25% auto debit reward

Cons

  • A hard credit check

Eligibility Requirements

  • Minimum credit of around mid-600s
  • Must be a U.S. citizen or permanent resident
  • Students must be enrolled at an eligible school pursuing a degree program
  • Must meet and maintain satisfactory academic progress

Repayment Terms

  • 0.25% interest rate reduction on auto payment
  • In-school deferment options
  • The repayment term of 15 years

#8 Citizens Bank

Best for High Loan Amounts

Apply now

Citizens Bank

4
Scholaroo Rating
Apply now
Fixed Rates Starting (APR)7.13%
Variable Rates Starting (APR)6.33%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Why We Like It

Citizen Bank offers private student loans with borrowers qualifying for an interest rate discount if they have an existing account with the bank. Student loans are available in all states, but checking and savings accounts are only available in limited states. Borrowers can borrow any amount between $1,000 – $ 350,000. They offer both cosigned and parent student loans. What stands out about Citizen Bank is that they offer a multi-year approval so with the first loan application, you can receive funding for the entire college duration without submitting documents or reapplying.

Pros and Cons

Pros

  • No origination, application, or disbursement fees
  • Can cover up to 100% of school attendance costs
  • In addition to standard forbearance, they offer loan modification programs
  • Offers the maximum interest rate under 10%

Cons

  • No estimate rates provided without a credit check (soft)

Eligibility Requirements

  • The parent and student must be U.S. citizens
  • Students must attend and be enrolled at least on the half-time basis
  • International students need to have a cosigner
  • Have no history of defaulting on previous loans

Repayment Terms

  • Up to 12 months forbearance option
  • Five to 10 years loan term
  • Six months loan deferment after graduation
  • Late fee of 5% of the total payment

#9 RISLA

Best for Loan Preapproval

Apply now

RISLA

4
Scholaroo Rating
Apply now
Fixed Rates Starting (APR)5.74%
Variable Rates Starting (APR)N/A
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Why We Like It

RISLA is a non-profit institution providing various types of private loans including private student loans to graduates, undergraduates, and also parents. RISLA parent loans do not have any origination fees, which can increase your savings right from the start. Your student is not obligated to repay this loan. This loan begins repayment 30 days after funds are disbursed.

Pros and Cons

Pros

  • Auto-pay rate discounts
  • No application fees
  • No origination fees
  • No late fees
  • Preapproval available

Cons

  • Loan limit of $1,500 - $50,000 per year
  • Minimum income requirement of $40,000
  • Fixed single repayment term

Eligibility Requirements

  • Borrower and student must be a U.S. citizen or permanent resident
  • Student must attend a Title IV Degree Granting School
  • Student must be enrolled at an eligible Public or Non-Profit Institution of Higher Education
  • Parents of non-matriculating Students can also apply
  • Borrower must meet minimum credit and income requirements

Repayment Terms

  • 10 years repayment term
  • Repayment begins 30 days after funds are disbursed

#10 InvestEd

Best for Indiana Residents

Apply now

InvestEd

4
Scholaroo Rating
Apply now
Fixed Rates Starting (APR)4.60%
Variable Rates Starting (APR)7.37%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Why We Like It

Invested parent loan is best for Indiana residents or for dependent students that are attending an Indiana college or university. InvestEd allows parents to borrow up to the student’s cost of attendance.

Pros and Cons

Pros

  • Cosigner release available
  • Can borrow up to the cost of attendance
  • Multiple repayment terms
  • Cosigner release available
  • Prequalification available

Cons

  • Limited to Indiana residents
  • Minimum credit of 670 required

Eligibility Requirements

  • Must be an Indiana resident
  • Must be a U.S citizen or permanent resident
  • Borrower and co-signer (if applicable) must have an established credit history and meet annual income requirements
  • Borrower or cosigner must have a minimum FICO score of 670
  • Must show proof of continuous employment over the last two years

Repayment Terms

  • 5, 10, or 15 years repayment terms

How to Find the Best Parent Private Student Loan

Finding the best parent private student loan can be quite an uphill task. The following tips will help you identify the loan that is best suited for you:

  • Loan Amount: The amount of money the lender is willing to give is one aspect that is important when comparing loans. This will help you know if the loan will be enough to cover the entire cost of attendance, as well as the extent to which the loan will assist in meeting your educational needs/expenses.
  • Interest Rates: Lenders may offer both fixed or variable interest rates on the loans they offer, so make sure to choose parent private student loans with lower interest rates. Borrowers need to be creditworthy to receive lower rates on the amount they borrow.
  • Application Process: The best parent private student loans have a seamless application process that is quite straightforward and the communication is prompt. The whole process should take a maximum of six weeks between loan application and approval.
  • Loan Terms: Loan terms define the overall relationship between the lender and the borrower. Some lenders have flexible payment methods and timeframes, whereas others are more strict on penalties and offer only traditional forbearance terms. Opt for leniency and longer payment terms that give you ample time to organize your finances.
  • Fees: There are various private loans that require you to pay certain fees such as origination-, application-, or late fees. Some of the best loans require you to pay these fees, while others do not charge anything.
  • Eligibility: Go for parent private student loans that you or your child are eligible for. Apart from the general eligibility requirements, there are loans that go into the specifics of the institution, the level, or the field of study. Others require you to have strong credit and a regular source of income.
  • Repayment Options: Different lenders have different repayment options such as grace periods, forbearance, or deferment options. There are private loans that require you to start making payments while the student is in school, whereas others give you a six-month grace period after graduation. Ensure that you find the best repayment option for your financial situation.

Types of Parent Loans for College

Federal Loans for Parents

Federal loans are financial aid given to students by the U.S. government. They are loans that have flexible repayment options and lower interest rates compared to private loans. There are three main types of federal loans which are: direct subsidized loans, direct unsubsidized loans, and direct plus loans. The Direct PLUS Loans have the Grad PLUS and Parent PLUS Loan options.

Parent PLUS Loans are given out to either biological, adoptive or at times stepparents of the eligible students. This loan is an unsubsidized loan that is mostly taken after a student has already taken out any other type of federal loan. Parent PLUS Loans offer additional aid that is needed to cover the remaining part of the costs of attendance after exhausting any other federal loan given to the student.

Parent Private Loans

Private loans for parents are given by private lenders and financial institutions. These loans have variable and fixed interest rates, various repayment options and credit score requirements. You can find the best parent loans from these lenders after comparing your options. We have outlined some top options that you can choose from and the tips to keep in mind when doing your research.

FAQs

Can a parent get a private student loan?

Yes, parents are eligible to get private loans to fund their child’s education. Many private lenders offer loans to parents specifically for this purpose. There is also a Parent PLUS loan which is a federal loan that parents can apply for.

Is a Parent PLUS loan better than a private loan?

A Parent PLUS loan may be better than a private loan in that it offers lower interest rates and better repayment options, and the borrower is eligible for loan forgiveness. Private loans have higher interest rates and fixed repayment terms/options.

What is the best bank for parent student loans?

The best bank trickles down to the borrower’s individual preference and financial standing. However, Citizen Bank and College Ave have the best reviews from previous borrowers and their current customers.

How do I select the best parent private loan?

Select the best private loan by going through your lenders and weighing in their terms and the loan amount against your current financial situation/your ability to repay and your educational needs.

Who pays a parent student loan?

Parents, being the primary borrowers, are responsible for repaying parent private student loans. If they have cosigned the loan with someone else then both the primary applicant and the cosigner share the responsibility of repaying the loan equally.

Are private parent loans eligible for forgiveness?

Private loans are not eligible for forgiveness. This is a benefit that comes with federal options only.

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