3 Best Parent PLUS Loan Refinance Options for 2019

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Updated on Thursday, January 31, 2019

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Updated January 29, 2018

Are you a parent still repaying student loans you took out to help your children finance their education? While rising student loan debt totals are concerning for new graduates, Parent PLUS loans can mean similar trouble for older Americans trying to plan for retirement or meet other financial goals.

If you’re in this situation, consider refinancing your Parent PLUS loans to lower your interest rate and make the loan more affordable. Direct PLUS loans have had interest rates ranging from 6% to 8% over the last few years, but some refinance programs have rates as low as 2% to 4%, so there are potentially big savings to be reaped.

Below are three lenders we’ve found to be among the best Parent PLUS refinance programs currently available. We encourage you to check each one out to see which (if any) suit your needs the most, as well as to shop around with multiple lenders. All credit inquiries made within a 30-day period count as one inquiry in the eyes of the credit bureaus, so you don’t have to worry about dinging your credit score.

A Word of Warning on Refinancing

Thankfully, most student loan refinance programs and Parent PLUS refinance programs don’t have fees associated with the loan, so you may not need to worry about paying origination or application fees. However, you should do the math to make sure refinancing is worth the paperwork.

If you extend your repayment term, you’ll have a lower monthly payment, but you’ll pay more interest over the life of the loan. And if you’re trying to retire sooner rather than later, extending your term might not be to your advantage.

Beyond interest rates, you should also be aware that refinancing your federal Direct PLUS loan means giving up federal benefits. Private lenders don’t offer the same repayment plans or forgiveness programs, though some lenders are more flexible about repayment than others.

For example, you’ll no longer have access to the graduated,extended repayment or income-driven repayment plans. Private loans also aren’t eligible for Public Service Loan Forgiveness, and you won’t have access to federal forbearance or deferment, though some private lenders allow you to temporarily pause payments if you run into financial hardship.

If you haven’t been struggling with paying back your PLUS loans, then losing these benefits might not concern you, but it’s a factor to consider. And if you refinance your Parent PLUS loans and later run into financial hardship, make sure to speak with your new lender about any arrangements that can be made.

SoFi Parent PLUS Refinance Program

SoFi is one of the leaders in the student loan refinance industry, and it offers refinancing specifically for Parent PLUS loans.

  • Offers refinancing for a minimum of $5,000 up to the cost of attendance for your child’s school
  • Fixed APRs ranging from 2.99% – 5.94% (with autopay)
  • Variable APRs ranging from 2.25% – 5.94% (with autopay)
  • No application or origination fees, and no prepayment penalties
  • Soft credit inquiry with pre-approval; hard inquiry once you apply for the loan
  • Good credit required, but SoFi also takes employment and credit history into account



on SoFi’s secure website

Laurel Road Bank (formerly known as DRB) Parent PLUS Refinance Program

Laurel Road Bank also offers a Parent PLUS refinance program with low interest rates.

  • A minimum of $5,000 required to refinance, with no maximum amount
  • Fixed rates: 2.80% – 6.00% (with autopay)
  • Variable rates: 1.89% – 5.90% (with autopay)
  • Terms of 5, 7, 10, 15, and 20 years available, though borrowers can request a specific term under 20 years
  • Also offers hybrid loans (mix of fixed and variable rates), but you must inquire about it
  • Child needs to have graduated college and be professionally employed
  • No origination fee or prepayment penalty
  • Available in all 50 states
  • Soft credit check first, and then hard inquiry when you apply for the loan

Laurel Road Bank


on Laurel Road Bank’s secure website

CommonBond Parent PLUS Refinance Program

CommonBond is dedicated to making the refinance process as simple as possible for student loan refinancing borrowers.

  • Maximum amount offered for refinance is $500,000
  • Fixed APRs ranging from 3.67% to 7.25% (with autopay)
  • Variable APRs from 2.50% to 7.24% (with autopay)
  • Hybrid APRs (5 years at fixed, then 5 years at variable) also offered
  • No application or origination fees, and no prepayment penalties
  • 5-, 7-, 10-, 15- and 20-year terms available (hybrid loans offered on a 10-year term)
  • Temporary loan forbearance is available if certain requirements are met
  • Soft credit inquiry first, then hard credit inquiry if you apply for the loan



on CommonBond’s secure website

Keep in mind some lenders, such as SoFi, CommonBond, and Laurel Road Bank, offer the option to transfer your PLUS loans to your child. If your child can handle making the payments, you might take advantage of this opportunity to get the debt out of your name.

Although these three lenders offer some of the most competitive rates for refinanced Parent PLUS Loans, keep an eye out for other refinancing providers as well. You might find a different lender with even better rates and terms for your loan.

You can also check with your local credit union to see if they have any options available, but be sure the math works out in your favor, as some aren’t offering you their best rates. Don’t forget — it’s worth shopping around to find the most savings!

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