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Parent PLUS loans are federal student loans issued directly to parents. They take a look at credit, offer some flexibility in repayment options, and the ability to fill funding gaps.
If you have a Parent PLUS loan and are considering changing the loan to your name, this is what you need to know.
One option to change the loan into your name is to refinance the loan with a private lender. You will need to apply and be approved for the loan through a private student loan lender, and supply information about your credit score, school and degree. Be aware that the new loan may have different terms and conditions, and potentially a lower interest rate as well.
One of the biggest changes in choosing to refinancing a Parent PLUS loan is that it absolves your parents from the debt obligation and enables you to select the appropriate loan terms.
Some other benefits:
Here are some lenders you can refinance with (support keeping Snowball free by using our referral links):
Before you decide to refinance your parent PLUS loan(s), there are some downsides you should also be aware of, including:
Before you begin anything. Be sure you and your parents are on the same page. Everyone should understand the financial and legal implications of refinancing and also have a firm grasp of what benefits this process may cause you to give up.
Did you read through this article and realize that refinancing may not be the best option for you?
Here are other things to consider:
At Snowball, we make the refinancing process more transparent and ensure you have evaluated the best lenders to get the best rate and terms for you. We also give you the best course of action to tackle your student debt and compare refinancing, optimizing payments, and federal decisions. You can learn more and sign up here.
Advertiser Disclosure: At Snowball we are committed to being honest and transparent. We will not allow advertisers to influence our opinion of offers that appear on our site. We do receive compensation from some partners whose offers appear here. It is this compensation which enables us to provide you with free services. We also may not cover all offers in the market. We are firm believers that if we wouldn’t recommend an offer to a close friend or family, we wouldn’t recommend it on Snowball either.