Refinance Student Loans

Best lenders to refinance parent PLUS loans of November 2023

By
Social Links for Mary Beth Eastman ,
reviewed by
Social Links for Andrew Pentis ,
edited by
Social Links for Jared Hughes
Updated Aug. 30, 2023, 11:33 a.m. ET
Family smiles after paying off their loan
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You could save money on interest or lower your monthly payment by refinancing your parent PLUS loan.

The best lenders to refinance parent PLUS loans offer competitive interest rates and a variety of loan terms, and some will also let you transfer the balance to your child. 

How to refinance parent PLUS loans

To refinance student loans, you’ll need to have a strong credit history, a stable income, and an acceptable debt-to-income ratio. 

Before you begin the application process, make sure you meet the lender’s criteria, which may include:

  • Your contact information, including email address
  • Social Security number
  • Monthly housing payment amount
  • Income verification
  • An eligible student loan from a participating university
  • Proof of U.S. citizenship or permanent residency
  • Minimum income, credit score, and credit history
  • Minimum loan amount
  • Highest degree earned

If you meet the qualifications, then most private lenders will let you apply online and provide you with loan options. Once you choose your preferred loan and sign your documents, the lender will pay off your existing loans, and you’ll start making payments on the new balance.

Best lenders to refinance parent PLUS loans

If you’re planning to refinance your parent PLUS loans or private parent loans, here are the best options offered through Credible’s partner lenders. 

1. Brazos

Brazos offers refinancing loans to Texas residents who have a bachelor’s degree or higher from an eligible school. There are no origination or application fees, and interest rates could be lower than what you find with other private lenders. 

However, some borrowers may find that Brazos has relatively strict eligibility requirements. Borrowers must have a minimum income of $60,000 and a credit score of 720 or higher. If you can’t meet those minimums alone, you can add a cosigner — but there’s no way to release your cosigner later.

  • Interest rates: Fixed or variable
  • Minimum credit score: 720
  • Loan terms: 5, 7, 10, 15, or 20 years
  • Loan amounts: $10,000 minimum, up to $150,000 for bachelor’s degrees and $400,000 for graduate, medical, law, or other professional degrees
  • Loan types: Federal and private loans
  • Eligibility: Borrower must be a Texas resident and a U.S. citizen or permanent resident who has a bachelor’s degree or higher. Borrower must have a minimum income of $60,000 and credit score of 720, or $30,000 and 690 respectively if applying with a cosigner. Must be employed or self-employed or have accepted a firm employment offer that starts with 60 days.

Pros:

  • Five loan terms available
  • Competitive rates
  • No origination or application fees
  • Autopay discount of 0.25 percentage points

Cons:

  • Only available to Texas residents
  • No cosigner release
  • High minimum credit and income requirements
  • Bachelor’s degree required

2. Citizens

Citizens offers student loan refinancing to qualifying borrowers who refinance at least $10,000 in student loan debt. You don’t need to have earned your degree to qualify, making Citizens a good choice for anyone who left school before graduating. 

Undergraduate borrowers can refinance up to $300,000 in student loans, while those who borrowed for graduate or professional degrees have higher limits of $500,000 or $750,000. Citizens offers fixed and variable rates and repayment terms between five and 20 years. 

If you’re a medical resident, you can refinance your student loans and only pay $100 per month for up to four years while completing your residency or fellowship. 

  • Interest rates: Fixed or variable 
  • Minimum credit score: Not disclosed 
  • Loan terms: 5, 7, 10, 15 or 20 years 
  • Loan amounts: $10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees 
  • Loan types: Federal, private, undergraduate, graduate, professional, medical residents, parents  
  • Eligibility: Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. If you earned an associate degree or didn’t complete your degree, you must make 12 payments on your student loans before you’re eligible to refinance.

Pros:

  • Repayment terms between 5 and 20 years 
  • Can prequalify and check your rates online 
  • Does not require that you graduated with your degree 
  • Autopay and loyalty discounts

Cons:

  • Must make 36 payments before eligible for cosigner release 
  • Must make 12 payments on your loans before you can refinance if you earned an associate degree or didn’t complete your degree
  • Relatively high loan minimum

3. College Ave

You can refinance all of your student loans, including federal student loans, with College Ave. College Ave offers loan amounts from $5,000 to $300,000, a variety of repayment options, and an autopay discount of 0.25 percentage points.

Pros:

  • Choose from fixed or variable rates and 11 loan term options, from five to 15 years 
  • No application or origination fees

Cons:

  • $300,000 maximum only applies to medical, dental, pharmacy, or veterinary doctorate degrees
  • Undergraduate and graduate degree loan amounts are capped at $150,000

4. EDvestinU

Nonprofit EDvestinU is part of the New Hampshire Higher Education Assistance Foundation (NHHEAF) Network and offers affordable rates for refinance loans. Borrowers can refinance federal and private loans, and fixed and variable rate loans are available. 

EDvestinU refinance loans are available to residents of about 20 states, and the lender has higher loan minimums and lower maximums than some competitors. Both of these factors limit who can (or might want to) refinance with this lender, but eligible borrowers do have various repayment term options. Unfortunately, cosigner release requirements can be strict, with release not available until after 24 on-time payments. 

  • Interest rates: Fixed or variable
  • Minimum credit score: Not disclosed 
  • Loan terms: 5, 10, 15, or 20 years 
  • Loan amounts: $7,500 to $200,000
  • Loan types: Federal, private, undergraduate, graduate
  • Eligibility: U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin. Borrowers must have obtained federal or private student loans which were used to attend an eligible institution.

Pros:

  • No degree is required to refinance, and you can refinance while still in school
  • Autopay discount of 0.25 percentage points
  • Prequalification is available

Cons:

  • Refinancing is only available in select states 
  • Minimum loan balance is higher than some competitors and maximum balance is lower
  • Cosigner release requirements are strict

5. ELFI

Borrowers who graduated with at least a bachelor’s degree may refinance their student loans with ELFI. Every applicant is assigned a student loan advisor to help guide them through the process. 

Students who wish to take over their parents’ PLUS loan may do so by refinancing with ELFI — something not offered by every lender — but spouses can’t consolidate their loans into a single refinancing loan. 

Unfortunately, ELFI doesn’t allow borrowers to release cosigners, nor does it offer any rate discounts. However, borrowers who experience financial hardship may be eligible for up to 12 months of forbearance.

  • Interest rates: Fixed and variable
  • Minimum credit score: 680
  • Loan terms: 5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7 or 10 years for parent loan refinancing
  • Loan amounts: Minimum of $10,000, maximum amounts vary based on eligibility
  • Loan types: Federal and private student loans, parent PLUS loans
  • Eligibility: Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance, a minimum income of $35,000, a minimum credit score of 680, and a minimum credit history of 36 months.

Pros:

  • Allows students to refinance parent PLUS loans in their own name
  • Student loan advisor assigned to each applicant
  • Transparent credit and income requirements
  • No application or origination fees 
  • Up to 12 months of financial hardship forbearance available

Cons:

  • Must have graduated with at least a bachelor’s degree to qualify
  • No cosigner release available
  • No rate discounts offered
  • Late fees and returned payment fees

6. INvestEd

INvested is an Indiana-based nonprofit lender that provides refinanced student loans nationwide. As a nonprofit, INvested offers competitive rates as well as an autopay discount. Cosigner release is also available after 12 on-time payments, which is less than many competitors. 

However, the maximum refinance limit of $250,000 is below what other lenders may allow. Borrowers must also comply with strict credit and income requirements to qualify, or must have an eligible cosigner. While credit requirements are clearly defined, there’s no way to prequalify with a soft credit check.

  • Interest rates: Fixed or variable
  • Minimum credit score: 670
  • Loan terms: 5, 10, 15, or 20 years 
  • Loan amounts: $5,000 to $250,000
  • Loan types: Federal, private, undergraduate, graduate 
  • Eligibility: U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years 

Pros:

  • No degree is required to refinance 
  • Cosigner release available after just 12 on-time payments
  • Autopay discount of 0.25 percentage points
  • Deferment options for school enrollment, military service, or financial hardship

Cons:

  • Lower maximum refinance limit than some competitors offer 
  • No prequalification option to view your rates
  • No refinance options for international students 
  • Can’t transfer parent loan to student

7. ISL Education Lending

Iowa Student Loan Liquidity Corporation (ISL) is a nonprofit organization that can refinance student debt for undergraduates and their parents, graduate students, and medical and dental professionals. No degree is required to refinance, and even students who are still in school may qualify — a rarity in the marketplace.  

The maximum amount you can refinance depends on the type of debt, though limits are generally high. ISL is also one of the few private lenders to offer a graduated repayment plan, where payments start small but gradually increase with time.

For borrowers who apply with a cosigner, they can remove that cosigner after making 24 consecutive monthly payments on time, assuming the applicant meets the underwriting and credit criteria.

  • Interest rates: Fixed
  • Minimum credit score: 670
  • Loan terms: 5, 7, 10, 15 or 20 years 
  • Loan amounts: $5,000 minimum ($10,000 for California residents); maximum of $200,000 for in-school applicants, $300,000 for undergraduate and parent loans, and up to $400,000 for medical and dental professionals
  • Loan types: Federal, private, undergraduate, graduate, parent, medical resident, medical and dental professional, in-school
  • Eligibility: Must be a U.S. citizen or permanent resident (Maine are not eligible); cannot have defaulted on any private or federal student loan; and meet additional requirements depending on the type of refinance loan. 

Pros:

  • No degree required
  • Certain borrowers can qualify for graduated repayment
  • No origination, prepayment, or late fees
  • Transparent credit and income requirements
  • Autopay discount of 0.25 percentage points

Cons:

  • No variable rates offered
  • Caps on maximum loan amounts
  • Maine residents not currently eligible
  • Minimum loan amount of $10,000 for California residents

8. MEFA

Not-for-profit lender Massachusetts Educational Financing Authority (MEFA) offers refinancing loans to student borrowers — and unlike many other lenders, you don’t need to have earned your degree to qualify. Only fixed-rate loans are available, but the rates are competitive and may be lower than what other lenders can offer. MEFA also doesn’t charge any fees or penalties. 

Refinance loans start at $10,000, and you must have made six consecutive on-time payments on the original loans over the most recent six months. If you can’t qualify based on your own credit history, you can add a cosigner. However, there’s no opportunity to release your cosigner later. 

  • Interest rates: Fixed
  • Minimum credit score: Does not disclose
  • Loan terms: 7, 10, or 15 years
  • Loan amounts: $10,000 up to your total debt
  • Loan types: Federal and private loans
  • Eligibility: Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past 5 years. Applicants without an established credit history may apply with a cosigner.

Pros:

  • No graduation requirement to refinance
  • No fees whatsoever
  • Prequalification available

Cons:

  • No rate discounts available
  • No variable interest rates
  • No cosigner release available
  • Parent student loans aren’t eligible

9. RISLA

Founded in 1981, Rhode Island Student Loan Authority (RISLA) is a nonprofit lender that offers refinance loans to borrowers in all 50 states. Though most private lenders require borrowers to have graduated to qualify for refinancing, RISLA also serves borrowers who didn’t complete their degree. 

RISLA offers income-based repayment to borrowers in financial distress. Additionally, borrowers may also access up to 24 months of forbearance in the event of financial hardship. Borrowers who return to graduate school may defer repayment on their refinancing loans for up to 36 months.

  • Interest rates: Fixed
  • Minimum credit score: Does not disclose
  • Loan terms: 5, 10, or 15 years
  • Loan amounts: $7,500 minimum up to of $250,000, depending on degree
  • Loan types: Federal and private loans, parent loans
  • Eligibility: Borrower or cosigner must have a minimum income of $40,000 and meet other credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.

Pros:

  • Income-based repayment for borrowers experiencing financial hardship
  • Up to 24 months of forbearance over the life of the loan
  • Cosigner release for education loans after 24 months of on-time payments
  • Multi-year approval available
  • Rate discounts available

Cons:

  • Limited repayment terms
  • Minimum $40,000 income required
  • Loans limited to $50,000 per year
  • Can’t release cosigner on parent loans
  • No variable rates

Other student loan refinancing companies to consider

Below are more student loan refinancing companies we evaluated.

Laurel Road

In addition to student loan refinance, Laurel Road also offers other products, like checking accounts and a cash-back credit card, that could help you reach your financial goals. Your student does not need to have completed their degree for you to refinance a parent PLUS loan with Laurel Road.

Pros:

  • Lower your rate with a linked checking account, automatic payments, and qualifying deposits
  • Apply your cash back rewards to your loan balance
  • Laurel Road honors your current loan’s deferment periods 

Cons:

  • Late fees

SoFi

SoFi allows borrowers to refinance undergraduate, graduate, and parent PLUS student loans. There’s also a refinancing program specifically for medical and dental school borrowers that caps payments at $100 per month during residency, for up to seven years.

To qualify, you must have graduated with an associates’ degree or higher. While it’s possible to qualify by applying with a cosigner, SoFi does not offer a way to release a cosigner for refinance loans. Further, borrowers must refinance at least $5,000 in debt — and potentially more in some states. That said, it’s possible to refinance up to the full balance of your qualified education loans.

  • Interest rates: Fixed or variable
  • Minimum credit score: Does not disclose
  • Loan terms: 5, 7, 10, 15, and 20 years
  • Loan amounts: $5,000 minimum (may be higher in certain states due to legal requirements); up to the full balance of qualified education loans
  • Loan types: Federal or private student loans, parent PLUS loans, medical and dental school loans, law and MBA loans
  • Eligibility: Must be a U.S. citizen, permanent resident, or non-permanent resident alien, named on the loans to be refinanced, and have graduated with an associates’ degree or higher from an eligible school. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.

Pros:

  • No origination, prepayment, or late fees, and 0.25% autopay discount
  • Refi program for medical and dental residency candidates
  • Parent PLUS loans can be refinanced in child’s name
  • Free access to additional benefits like career coaching and financial advice

Cons:

  • Cosigner release not available
  • Loan size minimum of at least $5,000
  • Must have graduated with at least an associates’ degree 
  • Private parent loans not eligible for refinancing unless combined with parent PLUS loan

Methodology 

Credible evaluated loan and lender data points in 12 categories to identify some of the “best companies” for refinancing student loans. We looked at interest rates, repayment terms, repayment options, fees, discounts, customer service availability, and maximum loan balances offered by 20 lenders. We also considered each company’s willingness to refinance student loans, eligibility, cosigner release options, whether the minimum credit score is available publicly, and whether consumers could request rates with a soft credit check. Credible receives compensation from its lender partners when a user of the Credible platform closes a loan with the lender.

When you should (and shouldn’t) refinance student loans

Federal parent PLUS loans disbursed for the 2022-2023 academic year sported a fixed interest rate of 7.54%. Refinancing to a new loan with a lower rate can help you reduce costs.

Refinancing a parent PLUS loan also gives you more flexibility when it comes to repayment. Instead of being locked in to the repayment plans offered by the federal government’s Direct Loan program, you can choose a loan term that works better for you, whether that’s five years or 20 years.

However, it’s important to think carefully about what you give up by refinancing with a private lender. Federal loans are eligible for government-exclusive benefits, such as deferments, student loan forgiveness, and special payment plans. 

Although you might save money by choosing one of the best lenders for a parent PLUS loan refinance, the loan will no longer be eligible for those federal benefits, as it would be with federal loan consolidation.

How to get the best interest rate when refinancing parent PLUS loans

If you’re looking to get the best interest rate possible when refinancing, there are a few strategies to consider.

  • Improve your credit score. If your credit score isn’t ideal, it may be difficult to get the best rate. But you can improve your score in a couple ways such as making on-time payments, paying down high balances, and limiting new credit inquiries.
  • Add a cosigner. A creditworthy cosigner can make it easier to obtain a low interest rate. Keep in mind that they’re legally responsible to make any payments if you’re unable to at any point in the life of the loan. 
  • Check your credit report for errors. You can check your credit report for any errors with one of the three major credit bureaus — Experian, Equifax, and TransUnion — at AnnualCreditReport.com. If you find any errors, you can report them to the corresponding bureau. This can also help to improve your credit score.

By visiting Credible, you can learn more about student loan refinancing and compare rates from multiple private student loan lenders.

The student loan refinancing companies in the table below are Credible’s approved partner lenders. Because they compete for your business through Credible, you can request rates from all of them by filling out a single form. Then, you can compare your available options side-by-side. Requesting rates is free, doesn’t affect your credit score, and your personal information is not shared with our partner lenders unless you see an option you like.