Can I refinance my parent loans into my child's name?

Refinancing Parent PLUS Loans Into the Student's Name

refinancing parent plus loans into the student's name

Many parents find themselves in the position of having to take out loans to help their children pay for college. But once your child is out of school, you may want them to formally assume responsibility for the debt. There are several things you should consider when exploring your options for consolidating or refinancing parent student loans into your child’s name.

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Can Parent PLUS Loans be transferred to a student?

If you keep your loans with the federal program, you cannot transfer the loans into your child’s name. You are able to consolidate your Parent PLUS Loans for one or more children, as well as your own Direct Student Loans (if you have them) into a single loan through the Direct Consolidation Loan program. This option allows you to retain the benefits of the federal student loan program, such as generous deferment and forbearance periods*. Though the loans would remain in your name, you may be able to simplify your payments and reset your repayment term. 

*Parent PLUS Loans, and Federal Consolidation Loans which include Parent PLUS Loans, may limit your income-driven repayment plan options. 

How do I refinance Parent PLUS Loans to my child?

If your goal is to get parent student loans into your child’s name, you will need to explore refinancing with a private lender. There are many lenders that offer this option. Our Lenders page makes it easy to compare some of the best Parent PLUS Loan refinance options. Your child will have to meet the lender’s criteria for the loan refinance, including a credit check.

Often times, recent graduates will need a cosigner in order to qualify for a private student loan refinance; especially if there is limited credit or work history. If your child needs a cosigner to refinance student loans, typical options include a spouse (if applicable) or a parent. If you choose to cosign, you will still be responsible for the loans. However you, can look for a lender that offers cosigner release. This allows the primary borrower (your child) to release the cosigner (you) from the loan once they’ve met certain criteria, such as a certain number of consecutive on-time payments, specific credit requirements, and proof of income. 

What are the best Parent PLUS Loan consolidation options?

Similar to a conventional loan, Parent PLUS Loan refinance rates depend on a number of variables and differ from lender to lender. When planning to consolidate parent student loans via refinance, we recommend contacting multiple lenders to review their terms and rate ranges, as well as the benefits they offer. People seek to consolidate loans for different reasons such as reducing the interest rate, extending the repayment term in order to lower monthly payments, or reducing the number of bills they are paying per month. The best Parent PLUS Loan consolidation is the one that meets your needs and expectations based on your ultimate goal. 

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What to do next?

Learn more about Parent PLUS Loan refinancing and consolidation