Top Parent Student Loan Options to Consider for Your Child's Education

Explore top parent student loan options including federal and private lenders like College Ave and SoFi. Learn about interest rates, repayment terms, and eligibility criteria to make informed decisions for your child's education funding.

Planning to fund your child's college education through a parent loan? It's essential to evaluate your borrowing options carefully. Both federal and private lenders offer various parent student loan programs worth considering.

Some prominent options include:

• Federal Direct Plus Loans
  Since 1980, the federal government has offered parent loans under this program. The 2016-17 interest rate was 6.31%, with an origination fee of 4.28%, and loans are typically paid over ten years. To qualify, parents must have a clean credit history without bankruptcy or unpaid debts.
• College Ave Parent Loans
  Established in late 2014, College Ave provides parent loans with no origination fees. They offer variable APRs from 4.03% to 6.03%, and fixed APRs around 6.54%. Loan terms range from 5 to 12 years. Applicants should have an annual income of at least $70,000 and credit scores in the mid-700s. Borrowers can choose to pay interest-only during college or make full payments immediately.
• SoFi Parent Loans
  Since 2011, SoFi has been providing competitive rates on parent loans, with no origination fees. Variable APRs range from 2.95% to 6.13%, while fixed rates are approximately 4.25% to 7.75%. Loan terms are available for 5 or 10 years. To apply, parents must complete the FAFSA to confirm eligibility.

Note: Always compare loan options and consider your financial situation before committing. Federal loans typically require a good credit score for favorable interest rates. Be sure to review the specific terms and conditions of each lender to find the best fit for your needs.