
Can A Parent PLUS Loan Be Transferred To The Student? – Low Cost Advisor
[ad_1]
Editorial Note: We earn a commission from partner links on Low Cost Advisor. Commissions do not affect our editors’ opinions or evaluations.
Parent PLUS loans allow parents to take out student loans on behalf of their children in college. These federal loans can be a useful funding source for parents, since they have lower credit requirements and more flexible repayment options than most private lenders.
Once the student graduates, however, some parents want to transfer those loans to their adult children—or those children want to take over the debt from their parents. But can a parent PLUS loan be transferred to the student? It’s possible, but not as easy as you might think. Here’s what to consider.
Can a Parent PLUS Loan Be Transferred to the Student?
There’s no federal program that allows you to transfer a parent PLUS loan to the student who benefitted from that loan. If you take out a federal PLUS loan, you’re responsible for it until it’s paid in full.
However, there are other options if you’re determined to transfer the debt. It’s possible to refinance a parent PLUS loan in the student’s name through a private lender. To refinance, the student can take out a new debt to pay off their parent’s existing PLUS loan. The newly refinanced debt would be in the student’s name, and the student would make payments to the private lender.
However, refinancing federal student loans comes with its own set of risks and isn’t right for everyone.
Pros and Cons of Refinancing a Parent PLUS Loan in the Student’s Name
Moving a student loan from the parent to the student has some benefits, but there are some major downsides, too. Consider the following:
Pros
- Parents are no longer on the hook for payments. Once the loan is removed from the parent’s name, they won’t have to worry about making payments. That can free up money in their budget and potentially improve their debt-to-income (DTI) ratio.
- The student can build a credit profile of their own. Newly graduated college students may not have much credit history, but making regular on-time payments on student loans can help build that. The more on-time payments students make, the better they’ll look to future lenders when they buy a car or apply for a credit card.
- You might get a lower interest rate than what you’re paying now. Parent PLUS loans tend to have higher interest rates compared to other federal loans. PLUS loans disbursed between July 2021 and July 2022, for example, have a fixed rate of 6.28%. If the student is a well-qualified borrower and refinances that debt, they could likely get a lower interest rate from a private lender.
Cons
- You’ll lose federal protections and benefits. If you refinance a parent PLUS loan, it will become private debt, which doesn’t have the same benefits as a federal loan. For example, parent PLUS loans have been automatically paused during the Covid-19 pandemic. You’ll also lose out on federal student loan forgiveness options. Refinancing is irreversible, so make sure you won’t need those benefits before taking the plunge.
- Less flexible repayment terms. Parent PLUS loans are eligible for certain federal repayment plans, which give you up to 25 years to repay the loan. If you refinance, your terms are based on whatever standards the lender has set. Most private lenders offer repayment periods of five to 20 years.
- Parents might still need to be on the loan. If the student doesn’t have a lot of credit history to their name, they might need a co-signer to complete the refinancing process. If they don’t qualify on their own, a parent may need to co-sign the debt—meaning they would still be responsible for loan payments if the student can’t pay.
Talk With Your Child About Your Options
If you took out a parent PLUS loan for your child and you want to find alternative ways for them to repay the debt, talk with your child about ways you can both be happy with the payment plan. You might have more choices than you think, including:
- Keeping the current loan. If the parent is struggling to make payments or wants to share responsibility with the student, consider a more informal agreement. The student can make payments straight to the parent or add their bank account to the parent’s repayment plan. This lets you keep federal protections on the loan while still involving the student in the payments.
- Refinancing to a new loan in the student’s name. If the student has a strong credit profile, they can take over the debt by refinancing it to a loan in their name only. The parent is removed from the responsibility, but it’s now a privately refinanced loan, not a federal one.
- Refinancing into a co-signed loan. If the student doesn’t have much of a credit history to their name, they may not qualify for a refinanced loan on their own. In this case, the parent can add their name as a co-signer to help the student qualify. Of course, you’d also be giving up federal protections in this case, but if you can snag a low enough interest rate, the risk may be worth it.
How to Transfer Parent PLUS Loans to the Student
If you’re preparing to move your parent PLUS loan into a private refinanced loan, here’s how to do it.
Shop and Compare Lenders
Before you complete an application, read the fine print; not all lenders will refinance a parent PLUS loan into the student’s name. Lenders that do offer it include:
- SoFi
- Laurel Road
- CommonBond
- PenFed Credit Union
Also consider if the student can meet the lender’s qualification requirements. For example, most lenders will require that the student has graduated from school and can meet minimum credit and income requirements.
When you find a few lenders that fit what you need, compare them based on the offered interest rates, repayment terms and fees.
Prequalify, If Possible
If the lender offers it, see if the student can prequalify for a refinanced loan. Input some basic information about the applicant and their finances to see if they’d be eligible for a loan with a specific lender. You can see estimated interest rates and repayment terms without hurting your credit score.
If you can’t find a prequalification option, make sure your credit profile is top-notch before completing a full application.
Consider Co-Signing, If Necessary
The student might want to take over payments, but if they can’t qualify for their own loan, they’ll need a co-signer. Co-signing a loan means you’re on the hook for payments if your child fails to make them. If they miss payments, you’ll both suffer a drop in your credit scores.
If you plan to co-sign the loan, review the lender’s policies and see if there’s a co-signer release. With this option, the co-signer can be removed from the loan after certain conditions are met.
Submit an Application and Finalize the Paperwork
Once you’ve found the best lender for your situation, complete the application. Get all your documents ready, including recent tax filings, pay stubs and identification, like a driver’s license. If the loan requires a co-signer, the second applicant will also need to provide this information.
Each lender processes and manages applications differently; you might hear back right away or it could take a few days. Depending on your application, you may need to submit additional information to your lender before you’re approved.
The Bottom Line
While refinancing parent PLUS loans isn’t the best option for everyone, it makes sense in certain situations. Consider refinancing if:
- Your child wants to build credit with a student loan in their name.
- You can secure a lower interest rate than what you have now.
- You don’t mind losing out on federal protections and benefits, such as flexible repayment and forgiveness options.
312 Comments
-
ScottkaL
Appreciate it. Plenty of facts!
play online casino for real money real money online casino california trusted casino online -
-
HectorJar
Beneficial data. With thanks.
what should i do my persuasive essay on narrative essay writer i need someone to write a resume for me -
NathanShumb
Great write ups, Thank you!
essay about myself as a writer essay writer reddit sites that write essays for you -
gateio
I may need your help. I’ve been doing research on gate io recently, and I’ve tried a lot of different things. Later, I read your article, and I think your way of writing has given me some innovative ideas, thank you very much.
-
HectorJar
Superb data. Thanks.
how do essay writing services work best cv writing service uk high school essay writing service -
-
-
Charlesthofe
Long-Term Effects.
amoxicillin price without insurance cost of amoxicillin 30 capsules – amoxicillin from canada
All trends of medicament. -
-
-
HectorJar
Many thanks, I enjoy this.
capstone project writing service cv writing service for it professionals reference letter writing service -
-
-
-
-
Brentcreew
buy amoxicillin online mexico price of amoxicillin without insurance – amoxicillin buy no prescription
-
HectorJar
Regards! I value it.
monster india resume writing service science essay writing service custom paper writing service reviews -
Jameshor
price of amoxicillin without insurance: where can you get amoxicillin amoxicillin capsule 500mg price
-
Charlesthofe
What side effects can this medication cause?
amoxicillin 500 mg capsule how much is amoxicillin prescription – amoxicillin 500 mg without a prescription
Read information now. -
Scottevilt
where can i get generic mobic pills: where can i buy mobic without a prescription – how can i get generic mobic
-
-
-
HectorJar
Fantastic stuff. Appreciate it.
essay writing service pakistan best essay writing service 2016 original essay writing service -
-
-
-
HectorJar
You actually stated this very well!
graduate school essay writing service writing a customer service resume essay writing service free draft -
-
-
-
Charlesthofe
safe and effective drugs are available.
how to get generic mobic prices: where can i buy mobic without a prescription – where buy cheap mobic price
Get information now. -
-
-
HectorJar
You actually stated this fantastically!
essay writing service for nursing seo article writing service personal email writing service -
-
-
-
-
HectorJar
Reliable info. Thank you.
college essay writing service last minute essay writing service cv writing service ireland -
-
HectorJar
Nicely put, Appreciate it!
what are the best online essay writing services linkedin profile writing service reviews uk thesis writing service reviews -
Freddyitele
mexican border pharmacies shipping to usa: п»їbest mexican online pharmacies – purple pharmacy mexico price list
-
Albertbip
india online pharmacy: buy prescription drugs from india – п»їlegitimate online pharmacies india
-
-
HectorJar
Incredible quite a lot of useful information!
buy essay writing service best college application essay writing service cheap research paper writing service -
-
HectorJar
Regards. Wonderful information!
have you ever used an essay writing service best essay writing service yahoo answers us based essay writing service -
Freddyitele
pharmacies in mexico that ship to usa: buying from online mexican pharmacy – mexican pharmaceuticals online
-
-
HectorJar
Awesome posts. Cheers!
professional resume writing service phoenix az competency writing service cover letter writing service reviews -
-
-
-
Albertbip
best online pharmacies in mexico: reputable mexican pharmacies online – pharmacies in mexico that ship to usa
-
HectorJar
Wonderful postings, Thank you.
best resume writing service 2020 cv and linkedin profile writing service uk professional cv writing service free -
-
HectorJar
Regards. Numerous tips.
military service writing writing service essay art essay writing service -
Albertbip
mexican mail order pharmacies: pharmacies in mexico that ship to usa – п»їbest mexican online pharmacies
-
-
HectorJar
Kudos. Very good stuff!
english writing correction service writing sample for customer service job cv writing service london -
-
-
HectorJar
Great information. Regards!
buy essay writing online best cover letter writing service best essay writing website -
Albertbip
mexican online pharmacies prescription drugs: п»їbest mexican online pharmacies – buying from online mexican pharmacy
-
Freddyitele
mexican mail order pharmacies: purple pharmacy mexico price list – mexican border pharmacies shipping to usa
-
-
Albertbip
buying prescription drugs in mexico: mexico drug stores pharmacies – mexico pharmacies prescription drugs
-
-
-
-
-
-
-
-
-
-
Michaelmub
zithromax for sale cheap where can you buy zithromax zithromax z-pak price without insurance
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Georgecet
online shopping pharmacy india: reputable indian online pharmacy – cheapest online pharmacy india
-
-
-
Francisjex
mexico pharmacies prescription drugs: mexican rx online – mexican border pharmacies shipping to usa
-
Dennistum
reputable mexican pharmacies online: mexican pharmaceuticals online – purple pharmacy mexico price list
-
-
-
-
-
-
-
-
RickeySum
Pharmacie en ligne livraison gratuite – Pharmacie en ligne pas cher
-
-
RickeySum
acheter sildenafil 100mg sans ordonnance
-
-
RogerPoite
A harmonious blend of local care and global expertise. mexican drugstore online: mexico drug stores pharmacies – mexico drug stores pharmacies
-
-
-
RogerPoite
They have an impressive roster of international certifications. mexican rx online: medication from mexico pharmacy – mexican online pharmacies prescription drugs
-
-
Michaelfag
online shopping pharmacy india: buy prescription drugs from india – top online pharmacy india
-
RogerPoite
Their cross-border services are unmatched. mexico drug stores pharmacies: best online pharmacies in mexico – mexico drug stores pharmacies
-
-
RogerPoite
A global name with a reputation for excellence. pharmacy com canada: legitimate canadian mail order pharmacy – canada drug pharmacy
-
-
-
RogerPoite
Their global distribution network is top-tier. canadian pharmacy service: buying from canadian pharmacies – online canadian pharmacy
-
Felixhop
buy medicines online in india: reputable indian online pharmacy – top online pharmacy india
-
Michaelfag
canadian pharmacies that deliver to the us: canadian pharmacy online ship to usa – canadian discount pharmacy
-
RogerPoite
Their cross-border services are unmatched. mexico drug stores pharmacies: mexican rx online – mexico drug stores pharmacies
-
Gaylordcem
Quick, accurate, and dependable. https://doxycyclineotc.store/# doxycycline 100mg cap price
-
-
Bobbydweds
I’m impressed with their commitment to customer care. http://edpillsotc.store/# mens erection pills
-
GregoryCes
They always keep my medication history well-organized. buy doxycycline online usa: doxycycline 500mg price in india – cheapest doxycycline online
-
-
-
-
Bobbydweds
Outstanding service, no matter where you’re located. https://azithromycinotc.store/# buy zithromax 1000 mg online
-
Dennisnof
Pioneers in the realm of global pharmacy. http://drugsotc.pro/# mexican pharmacy weight loss
-
CharlesJet
medicine in mexico pharmacies buy medications in Mexico without a prescription mexican drugstore online
-
Clintzen
Their pet medication section is comprehensive. http://mexicanpharmacy.site/# medicine in mexico pharmacies
-
Clintzen
They consistently exceed global healthcare expectations. http://mexicanpharmacy.site/# mexican online pharmacies prescription drugs
-
Dennisnof
Their worldwide reach ensures I never run out of my medications. http://mexicanpharmacy.site/# п»їbest mexican online pharmacies
-
CharlesJet
mexican border pharmacies shipping to usa mexican online pharmacy medicine in mexico pharmacies
-
-
Clintzen
A pharmacy that sets the gold standard. http://indianpharmacy.life/# buy prescription drugs from india
-
-
Dennisnof
Their loyalty points system offers great savings. https://drugsotc.pro/# best online pharmacy reddit
-
-
Williamdrunc
They consistently go above and beyond for their customers. https://canadapharmacy.cheap/# escrow pharmacy canada
-
-
JamesJes
medication from mexico pharmacy : mexico pharmacy online – pharmacies in mexico that ship to usa
-
JamesJes
reputable mexican pharmacies online – mexico pharmacy price list – mexico pharmacies prescription drugs
-
CharlesSnole
buying prescription drugs in mexico online or medicines mexico – mexico drug stores pharmacies
-
JamesJes
mexican border pharmacies shipping to usa or mexican pharmacies – п»їbest mexican online pharmacies
-
-
-
-
-
RalphWheem
top online pharmacy india: п»їlegitimate online pharmacies india – reputable indian pharmacies
-
-
-
-
-
-
-
-
-
-
TerryNiX
valtrex generic over the counter: buy antiviral drug – how to buy valtrex without a prescription
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Davidskymn
canadian drugstore online: canada ed drugs – reliable canadian pharmacy canadapharmacy.guru
-
BrianNuabe
mexican online pharmacies prescription drugs: mexican mail order pharmacies – best online pharmacies in mexico mexicanpharmacy.company
-
BrianNuabe
mexican rx online: mexico drug stores pharmacies – best online pharmacies in mexico mexicanpharmacy.company
-
-
Davidskymn
п»їbest mexican online pharmacies: buying prescription drugs in mexico – reputable mexican pharmacies online mexicanpharmacy.company
-
-
BrianNuabe
india online pharmacy: reputable indian pharmacies – buy prescription drugs from india indiapharmacy.pro
-
Derekswins
https://mexicanpharmacy.company/# buying prescription drugs in mexico online mexicanpharmacy.company
-
-
BrianNuabe
my canadian pharmacy: canadian pharmacy service – canadian neighbor pharmacy canadapharmacy.guru
-
-
-
BrianNuabe
mexico pharmacies prescription drugs: mexican border pharmacies shipping to usa – buying prescription drugs in mexico online mexicanpharmacy.company
-
-
Davidskymn
india online pharmacy: top 10 pharmacies in india – cheapest online pharmacy india indiapharmacy.pro
-
BrianNuabe
mail order pharmacy india: indian pharmacies safe – top online pharmacy india indiapharmacy.pro
-
-
-
BrianNuabe
online pharmacy india: top 10 online pharmacy in india – pharmacy website india indiapharmacy.pro
-
-
Davidskymn
indian pharmacies safe: world pharmacy india – п»їlegitimate online pharmacies india indiapharmacy.pro
-
Derekswins
https://mexicanpharmacy.company/# п»їbest mexican online pharmacies mexicanpharmacy.company
-
BrianNuabe
canadianpharmacyworld: rate canadian pharmacies – canadian family pharmacy canadapharmacy.guru
-
-
Davidskymn
reputable indian online pharmacy: indian pharmacy online – buy prescription drugs from india indiapharmacy.pro
-
-
BrianNuabe
mexico pharmacies prescription drugs: best online pharmacies in mexico – mexican mail order pharmacies mexicanpharmacy.company
-
Derekswins
http://mexicanpharmacy.company/# buying prescription drugs in mexico mexicanpharmacy.company
-
Davidskymn
reputable indian pharmacies: online shopping pharmacy india – top 10 pharmacies in india indiapharmacy.pro
-
BrianNuabe
world pharmacy india: п»їlegitimate online pharmacies india – online pharmacy india indiapharmacy.pro
-
-
-
BrianNuabe
indian pharmacies safe: pharmacy website india – indian pharmacy paypal indiapharmacy.pro
-
-
-
-
-
-
-
-
-
RobertAbult
how to get generic clomid pill: where can i buy clomid without prescription – where to get clomid without insurance
-
-
-
-
-
-
-
-
-
-
Charlesfaw
mexican pharmacy without prescription: best non prescription ed pills – cialis without a doctor’s prescription
-
-
-
-
Charlesfaw
best non prescription ed pills: prescription drugs online without – legal to buy prescription drugs without prescription
-
-
Charlesfaw
medicine in mexico pharmacies: п»їbest mexican online pharmacies – п»їbest mexican online pharmacies
-
-
Charlesfaw
buying from online mexican pharmacy: mexican drugstore online – mexico drug stores pharmacies
-
-
-
WillieAlush
cost cheap propecia tablets: cheap propecia online – cost cheap propecia without a prescription
-
AnthonyFAM
buy cheap prescription drugs online: legal to buy prescription drugs from canada – buy prescription drugs
-
-
-
-
-
-
-
-
-
-
-
-
-
Josephjem
sildenafil canada price: sildenafil generic in united states – where to buy sildenafil in south africa
-
-
-
-
-
-
-
-
-
-
ScottUnfog
ciprofloxacin over the counter: ciprofloxacin over the counter – ciprofloxacin 500mg buy online
-
-
-
-
-
CharlesKiz
amoxicillin 500mg without prescription purchase amoxicillin online amoxicillin 500mg capsule cost
-
-
VernonLet
generic for amoxicillin: cheap amoxicillin – can i buy amoxicillin over the counter in australia
-
-
-
-
-
-
CharlesKiz
how to get doxycycline cheap Buy doxycycline for chlamydia buy doxycycline 100mg capsules
-
-
-
-
-
-
RobertAppax
buy prescription drugs without doctor: order medication online – mexican border pharmacies
-
-
Richarddaw
safe canadian pharmacies online: buy prescription drugs online – reputable online canadian pharmacies
-
-
-
-
-
-
-
-
-
-
-
bittrex vs binance
Your article helped me a lot, is there any more related content? Thanks!