Best Lenders To Refinance Parent PLUS Loans Of April 2024

Citizens Bank offers a refinance program specifically for parent borrowers. It’s one of the few lenders that doesn’t require the student on whose behalf the parent took out loans to have graduated.

Borrowers can also qualify for an interest rate discount of up to 0.50% if they have an existing account with the bank. (Refinancing is available nationwide, but checking and savings accounts are only available in Connecticut, Delaware, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Vermont.)

Loan terms: 5, 7, 10, 15 and 20 years

Loan amounts available: $10,000 to $300,000 (for those with a bachelor’s degrees or less) or $500,000 (for those with a graduate degree)

Eligibility: No degree required. Borrowers with no degree or an associate’s degree must show that they have made 12 on-time payments after leaving school in order to refinance. Minimum income $24,000 for borrower and co-signer combined.

Forbearance options: Three months of forbearance available at a time up to an undisclosed limit. Borrowers experiencing a long-term financial hardship can participate in a loan modification program for up to 12 months.

Co-signer release policy: Available after 36 on-time payments

Education Loan Finance (known as ELFI) offers a student loan refinance product specifically for parents. The student on whose behalf you borrowed must have graduated from a participating school. Qualifying students also have the option to refinance parent loans as part of their own refinance application.

Parents can refinance no less than $10,000, which is a higher limit than other lenders require. But ELFI’s rates are comparatively low, and the company limits parent refinance loan terms to 10 years, which can help borrowers ensure they get the most interest savings possible.

Loan terms: 5, 7, 10, 15, or 20 years

Loan amounts available: $10,000 minimum; no limit for borrowers that meet the highest eligibility requirements.

Eligibility: The student must have earned a bachelor’s degree from an eligible school. The primary refinance borrower must have a credit score of 680 or higher and an annual income of at least $35,000 per year.

Forbearance options: Up to 12 months of forbearance available

PenFed, short for Pentagon Federal Credit Union, offers student loan refinancing through a partnership with Purefy, an online-only student loan provider. Students can refinance their parent’s loans and take on repayment responsibility, or parents can refinance their own loans.

You’ll have to become a member of PenFed Credit Union in order to refinance once you’ve been preapproved for a loan, but there are no restrictions on membership for refinance customers and there’s a nominal cost to join. You’ll then have access to other financial products as a PenFed member.

Loan terms: 5, 8, 12 and 15 years

Loan amounts available: $7,500 to $300,000.

Eligibility: The student must have received a bachelor’s degree. The borrower must have a minimum credit score of 700 and minimum income of $42,000 if you refinance less than $150,000. (You must use a co-signer if your credit score is 670 to 699 and your income is between $25,000 and $41,999).

If you refinance $150,000 or more, you’ll need a minimum credit score of 725 and minimum income of $50,000. (You must use a co-signer if your credit score is 670 to 724 and your income is $25,000 to $49,999).

Forbearance options: PenFed does not disclose a specific forbearance limit, but borrowers seeking repayment help have the option to receive temporary (six months or less) or permanent hardship assistance based on their circumstances. After filling out an application for assistance, PenFed says it will provide a personalized solution.

Through Laurel Road, parents can refinance student loans they borrowed, or students can take on responsibility for their parent’s loans if they qualify. The student does not need to have graduated in order for a parent to refinance loans taken out on the student’s behalf. There’s no limit to the amount Laurel Road customers can refinance, which is helpful for those with a lot of parent loan debt.

But those who choose shorter repayment terms will get limited forbearance in case of an economic hardship: five months for five-year terms, seven months for seven-year terms and so on.

Loan terms: 5, 7, 10, 15 and 20 years

Loan amounts available: $5,000 minimum; no maximum, except for associate’s degree graduates, who can refinance up to $50,000.

Eligibility: Must have a degree from an eligible institution. Associate’s degree graduates can refinance if they work in certain health care fields. Laurel Road does not disclose credit score or income requirements.

Forbearance options: Up to 12 months of forbearance available, in three-month increments

Co-signer release policy: After 36 consecutive, on-time payments

SoFi allows borrowers with an associate’s degree to refinance, which opens up eligibility to a wider range of applicants. (We believe the ability to refinance without a bachelor’s degree is an important feature of a refinance loan; seven of the 10 lenders on our list offer it.) Also, it’s one of four lenders on our list that does not place a limit on the amount you can refinance. It’s possible to refinance up to the total balance of your loans, which is helpful for those with a lot of debt from professional degrees.

SoFi’s rates aren’t as low as some other lenders’, and it doesn’t offer co-signer release, which is unusual among our top picks. But as a SoFi customer, you’ll get access to benefits like a 0.125% interest rate discount on certain additional SoFi products.

Loan terms: 5, 7, 10, 15 and 20 years.

Loan amounts available: $5,000 up to total balance of eligible loans.

Eligibility: Associate’s or bachelor’s degree required. Minimum credit score of 650. Does not disclose income requirements.

Forbearance options: A forbearance program is available for borrowers experiencing other types of economic hardship, such as medical expenses. Borrowers can take up to 12 months total forbearance.

Co-signer release policy: Available after 24 payments.

*Fixed rates range from 5.24% APR to 9.99% APR with 0.25% autopay discount. Variable rates range from 6.24% APR to 9.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 13.95% APR; 15- and 20- year terms are capped at 13.95% APR. SoFi rate ranges are current as of 02/06/24 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. 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 discontinue and be lost for 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. You may pay more interest over the life of the loan if you refinance with an extended term.

Earnest offers several unique features, including the option to make automatic payments twice a month to accelerate repayment and the choice of any repayment term between five and 20 years⁴. It also offers a solid range of hardship repayment options beyond the standard 12 months of forbearance, such as the ability to skip⁵ one monthly bill every year.

Borrowers cannot apply with a co-signer, so you must be able to meet the credit requirements on your own. Earnest did not disclose the amount of time before unpaid loans go into default.

Loan terms: Choose any term between five and 20 years³. Your options may depend on your financial profile.

Loan amounts available: $5,000 ($10,000 for California residents) to $500,000.

Eligibility: Borrowers must have completed a degree at an eligible nonprofit school and have a minimum credit score of 650. They must also meet other criteria, including having savings of at least two months’ worth of expenses, on-time payment history and no bankruptcies.

Forbearance options: Up to 12 months of forbearance available (after making three consecutive, timely payments toward the loan). Counted towards the forbearance limit, borrowers can also skip one payment every 12 months⁵ (after making six consecutive, timely payments) and get an interest rate and/or term modification in the event of long-term financial hardship.

Co-signer release policy: None

¹Terms and conditions apply. To qualify for this Earnest Bonus offer: 1) you must not currently be an Earnest client, or have received the bonus in the past, 2) you must submit a completed student loan refinancing application through the designated Forbes Advisor link; 3) you must provide a valid email address and a valid checking account number during the application process; and 4) your loan must be fully disbursed.

²Student Loan Refinance Interest Rate Disclosure:Actual rate and available repayment terms will vary based on your income. Fixed rates range from 5.44% APR to 9.99% APR (excludes 0.25% Auto Pay discount). Variable rates range from 6.24% APR to 9.99% 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.

³Auto Pay Disclosure: You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment from a checking or savings account. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.

⁴Student Loan Refinance 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 $72) and a 5.89% APR would result in a total estimated payment amount of $17,042.39. 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 $72) and a 6.04% APR would result in a total estimated payment amount of $17,249.77. Your actual repayment terms may vary.

⁵Skip A Payment Disclosure: Earnest clients may skip one payment every 12 months. Your first request to skip a payment can be made once you’ve made at least 6 months of consecutive on-time payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Please be aware that a skipped payment does count toward the forbearance limits. Please note that skipping a payment is not guaranteed and is at Earnest’s discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.

Loan Eligibility Criteria: Your debt is from paying for education at a Title IV accredited school. The debt is from your education or your child’s. The debt you’re refinancing is for a completed degree or one that will be completed at the end of this semester. You are currently the primary borrower on the student loans you would like to refinance, and you will remain the primary borrower after refinancing. You must reside in the District of Columbia or one of the 47 states Earnest Operations LLC is authorized to lend in (all but Delaware, Kentucky, and Nevada). This is strictly a student loan refinance product. There is no opportunity to borrow more than your outstanding qualifying student loan amount. You must be the age of majority in your state or older at the time you apply, as well as be a United States citizen or Permanent Resident Alien without conditions. Refinancing is subject to credit qualifications. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX.

You may lose benefits associated with your underlying federal and/or private loans if you refinance such as federal Income-driven Repayment Plans, Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options. If you file for bankruptcy, you may still be required to pay back this loan.

Lender Identification: Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC. or FinWise Bank, Member FDIC. Earnest Operations LLC, NMLS #1204917. 535 Mission St., Suite 1663, San Francisco, CA 94105. California Financing Law License 6054788. Visit www.earnest.com/licenses for a full list of licensed states. For California residents: Loans will be arranged or made pursuant to a California Financing Law License. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. FinWise Bank, 756 East Winchester, Suite 100, Murray, UT 84107.

Iowa Student Loan is a nonprofit organization that makes loans to borrowers nationwide and provides scholarships to Iowa residents. You don’t need to live in Iowa in order to refinance loans through its parent Reset Refinance Loan Program. Students can’t refinance parent loans in their own names through Iowa Student Loan, but students can serve as co-signers for parent refinance borrowers. That can help students take on repayment responsibility.

Iowa Student Loan offers a rare 24-month forbearance period and a graduated repayment plan for borrowers who need lower monthly payments to start.

Loan terms: 5, 7, 10, 15 and 20 years

Loan amounts available: $5,000 to $300,000.

Eligibility: Applicants must be U.S. citizens with a FICO score of 670 or higher.

Forbearance options: Up to 24 months of forbearance available. Graduated repayment plan, in which payments start smaller and gradually increase, available to some borrowers with seven-year repayment terms and all borrowers with 10-, 15- or 20-year terms.

Navy Federal Credit Union is a national credit union that serves current and former members of the military and their families and household members (even roommates can qualify). As a member, you can open check or savings accounts, take out auto loans or mortgages or refinance parent and student loans.

Navy Federal Credit Union’s parent loan offering is available only to parents, not to students who want to take on parent loan repayment responsibility. The product comes with a generous 18-month forbearance period for those experiencing economic hardship. The maximum interest rate, however, can reach much higher than other lenders’ on our list.

Loan terms: 5, 10 or 15 years

Loan amounts available: $7,500 to $175,000.

Eligibility: Applicants must be U.S. citizens and have a monthly income of at least $2,000 and 21 months or more of credit history. Or an applicant can apply with an income of $100 a month and a co-signer with monthly income of $2,000 or more.

Forbearance options: Up to 18 months of forbearance available.