Starting July 1, 2026, Parent PLUS Loans are capped at an annual limit of $20,000 and a lifetime limit of $65,000 per dependent student. If that's not enough for your child's education, private lenders also offer parent student loans.
A parent, grandparent, legal guardian or other relative must to submit an application on the dependent student's behalf and assume financial responsibility for repaying the loan.
In most cases, a private parent student loan can cover up to 100% of the cost of attendance. But some lenders require at least interest payments to be made while the student is still enrolled.
Below, CNBC Select reviews the best private lenders for parent student loans, based on rates, approval requirements, availability, loan limits, terms and other factors. Read our methodology for more on how we choose the best parent student loans.
Compare student loan offers
Best for loan protections: Parent PLUS Loans
Federal Parent PLUS Loan
Cost
4.228% of the loan amount for loans disbursed on or after Oct. 1, 2020
Eligible loans
Direct PLUS loans, PLUS loans for graduate and professional students, parent PLUS loans
Loan types
Fixed
Fixed rates (APR)
8.05% for loans disbursed on or after Jul. 1, 2023, and before Jul. 1, 2024
Loan terms
10–30 years, depending on the repayment plan
Loan amounts
Maximum amount is for the total cost of attendance
Minimum credit score
Not disclosed but there are still options for those who apply for a parent PLUS loan with adverse credit
Minimum income
N/A
Allow for a co-signer
An endorser may be obtained if applying with adverse credit
See our methodology, terms apply.
Pros
- Can borrow up to the cost of attendance
- Can request deferment or forbearance
- Ability to still receive a loan award even with adverse credit history
- Can choose from multiple repayment plan options
Cons
- Parents cannot transfer payment responsibility onto the child
- 4.228% fee
Who's this for? Federal loans have fixed interest rates and more deferment and forbearance options than private loans.
Loan limit: While they used to be available up to the cost of attendance, starting July 1, 2026, new Federal Parent PLUS Loans are capped at an annual limit of $20,000 and a lifetime limit of $65,000 per dependent student.
Loan terms: 10 to 25 years
Best for rate discounts: SoFi
SoFi Parent Loan
Cost
No origination fees, no application fees, no insufficient funds fees, no prepayment penalties or late fees
Eligible loans
SoFi parent loan
Loan types
Fixed and variable rates
Variable rates (APR)
5.70% - 16.73% APR (with autopay)
Fixed rates (APR)
3.87% - 14.83% APR (with autopay)
Loan terms
5, 7, 10 and 15-year terms available
Loan amounts
Minimum is $1,000; Maximum amount is for the total cost of attendance
Minimum credit score
Not disclosed
Minimum income
Not disclosed
Allow for a co-signer
Not disclosed, however, students applying for a private student loan can have their parents co-sign on the loan
Terms apply.
Pros
- Can borrow up to the cost of attendance
- Four loan repayment terms available
- Doesn't charge origination fees, application fees, insufficient funds fees, prepayment penalties or late fees
- Your student doesn't need to be enrolled in their degree program full-time but must be attending at least half-time
- Deferment options available
- Can apply and get a credit decision in about 3 minutes
- 0.25% interest rate reduction when you sign up for autopay
- Additional 0.125% interest reduction if you're an existing SoFi member
- Receive an automatic 0.125% discount if you've taken out a SoFi private student loan before
- Earn points for completing tasks within the SoFi app; points can be used to pay down your parent student loan balance
- Unemployment protection program available
Cons
- Your child's school must be on SoFi's eligible schools list
Fixed rates range from 3.87% APR to 16.73% APR with a 0.25% autopay discount. Variable rates range from 5.70% APR – 16.73% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates are capped at 17.95%. SoFi rate ranges are current as of 11/11/2025 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 and type of repayment option you select, evaluation of your creditworthiness, income, presence of a co-signer (if applicable) and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. Check out our eligibility criteria at https://www.sofi.com/eligibility-criteria/. 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.
Who's this for? Like most lenders, SoFi gives a 0.25% interest rate reduction when you sign up for autopay. But it adds an additional 0.125% discount if you're an existing SoFi customer, and another 0.125% off if you've taken out a SoFi private student loan before.
Standout benefits: Borrowers are eligible for hardship protections, including up to 12 months of forbearance if you lose your job. Parents can redeem SoFi Member Rewards to pay down loans, book travel and more.
Loan limit: Up to the full cost of attendance, minus any financial aid.
Loan terms: 5, 7, 10 and 15 years
Best for speedy approvals: Citizens Bank
Citizens Bank Parent Loan
Cost
No origination fees, application fees, disbursement fees or prepayment penalty
Eligible loans
Citizens Bank parent student loan
Loan types
Fixed and variable rates
APR
3.24% to 14.99% APR with autopay discount (Undergraduate New Loan). Other rates and loan types are available. Visit Citizen's website for full details.
Loan terms
5 and 10-year terms
Loan amounts
Minimum is $1,000; Maximum amount depends on the type of degree (graduate or undergrad, MBA, Law and Healthcare)
Minimum credit score
Not disclosed
Minimum income
Not disclosed
Allow for a co-signer
Not disclosed, however, students applying for a private student loan can have their parents co-sign on the loan
Terms apply.
Pros
- No origination, application, disbursement fees or prepayment penalty
- Can receive rate information in just two minutes
- Multi-year approval
Cons
- The maximum loan amount depends on the type of degree
- Limited repayment terms
Who's this for? Eligible Citizens Bank borrowers can submit their information online and receive an approval response in as little as two minutes.
Standout benefit: In addition to a 0.25% autopay discount, there's an additional 0.25% rate reduction for borrowers who already have a Citizens account.
Loan limits: Citizens' parent student loan limits depend on the degree.
- Undergraduate: $150,000
- Graduate Degrees: $150,000
- MBA and Law: $225,000
- Healthcare: $180,000 or $350,000 depending on the degree
Loan terms: 5- and 10-year terms
Best for flexible repayment terms: College Ave
College Ave Parent Student Loan
Cost
No origination fees or prepayment penalties
Eligible loans
College Ave Parent Student Loans
Loan types
Fixed and variable rates
Variable rates (APR)
3.89% to 17.99% APR as of May 4, 2026 (shown with auto-pay discount)
Fixed rates (APR)
2.39% to 17.99% APR as of May 4, 2026 (shown with auto-pay discount)
Loan terms
5–15 years
Loan amounts
Minimum is $1,000; Maximum is up to 100% of the cost of attendance
Minimum credit score
Not disclosed
Minimum income
Not disclosed
Allow for a co-signer
Not disclosed
Terms apply.
Pros
- No origination fees or prepayment penalty
- Repayment terms are flexible as long as they're within 5 to 15 years
- Access to a free credit pre-qualification tool
- Mobile app access for managing your loan
Cons
- Interest rates are on the higher end
- No grace period on parent student loans
- Interest-only payments are required while the student is in school
Who's this for? College Ave allows borrowers to choose any term between five and 15 years.
Standout benefit: College Ave says its loan application takes just three minutes to complete and candidates receive a decision instantly. Parents can choose between immediate full payments, interest-only payments or deferred payments while your student is in school.
Loan amounts: Up to 100% of the cost of attendance, minus any financial aid.
Loan terms: 5 to 15 years
Compare offers to find the right student loan
What are parent student loans?
Parent student loans are taken out by parents or legal guardians to help pay for a dependent student's college expenses. Unlike traditional student loans, the parent — not the student — is considered the borrower and is legally responsible for repaying the balance.
Parents can choose between federal Parent PLUS loans and private parent student loans offered by banks, credit unions and online lenders. New caps on Parent PLUS Loans starting July 1, 2026, may send more families to private lenders for financing.
How parent student loans work
Approval for private parent loans typically depends on the parent's financial profile, including their credit score, income, debt-to-income ratio and other factors.
If they're approved, the lender typically sends the funds directly to the college to cover tuition and other eligible educational expenses. Remaining funds are usually refunded to the parent or the student for additional expenses or to reduce the loan principal.
Who repays a parent student loan?
The parent or guardian who signed the loan agreement is responsible for repaying the loan, even if the student agrees to help with payments after graduation. Missing payments can affect the parent's credit score and may result in collection efforts.
If they meet credit and income requirements, a student may be able to refinance a parent loan into their own name after graduation, depending on the lender's refinancing policies.
When does repayment on a parent student loan begin?
Repayment terms vary by lender, but parents may have several options, including:
- Full principal and interest payments while the student is in school.
- Interest-only payments during enrollment
- Deferment until after graduation (or leaving school)
Interest typically continues to accrue if payment is deferred, increasing the total cost of the loan over time.
Is a parent student loan right for you?
A parent student loan can help bridge funding gaps if federal student loans and other aid don't cover the full cost of attendance. Before borrowing, compare loan offers carefully, paying close attention to interest rates, fees, repayment terms and borrower benefits.
Even with new caps, federal loans should be your first option, since they generally offer more flexible repayment plans and stronger borrower protections.
If you have excellent credit, however, you may qualify for a lower rate with a private lender than the fixed rate available with a Parent PLUS loan.
Pros and cons of parent student loans
Like any form of financing, private parent student loans come with benefits and drawbacks
Pros
- Higher borrowing limits
- Lower rates if the parent has good credit
- Flexible repayment terms
Cons
- Approval is credit-based
- Parent remains legally responsible for repayment
- Fewer borrower protections and hardship assistance than federal loans
FAQs
Can a private parent loan be transferred to the student?
A parent student loan can't be transferred, but the student may be able to refinance the loan after graduation and become responsible for the new debt. To qualify for refinancing, the student should have good credit, sufficient income, stable employment and a low debt-to-income ratio. If they're approved, the original parent loan is paid off, and the student becomes solely responsible for making payments on the new loan.
Can parent student loans be forgiven?
Federal Parent PLUS Student Loans may be eligible for certain federal forgiveness programs. Private parent student loans are typically not eligible for forgiveness except in cases of permanent disability or death.
What is the maximum amount you can borrow for a parent student loan?
While federal Parent PLUS loans once covered up to 100% of the cost of attendance minus other financial aid, they are now capped at an annual limit of $20,000 and a lifetime limit of $65,000 per dependent student. Most private lenders typically still finance up to the cost of attendance, but some, like Citizens Bank, have specific caps. Be sure to read the terms before accepting funding.
Do parent student loans come with fees?
Federal Parent PLUS Student Loans have an origination fee, but most private lenders have done away with origination fees and charges for applications, disbursement or prepayment.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every student loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of student loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best student loan lenders.
Our methodology
To determine the best parent student loans, CNBC Select analyzed more than 20 national banks, credit unions and online lenders that offered this type of financing. We only considered those that offer competitive student loan rates and prequalification tools that don't hurt borrowers' credit.
While the lenders we chose consistently rank as having some of the lowest interest rates for student loans, we also compared each on:
- Eligibility requirements
- Loan limits
- Loan terms
- Approval time
- Repayment options
- Borrower protections, such as deferment or forbearance
- Bonus features, like autopay rate discounts
- Customer service
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