The Easy Way To Refinance Parent PLUS Loans


For parents who took out Parent PLUS loans or private student loans to help their children go to college, refinancing can be an easy way for qualified borrowers to reduce their interest rate and pay off their loans sooner. Using Purefy’s rate comparison tool, you can quickly and easily compare your actual rate offers from a tightly vetted list of refinance companies. All of our lenders have sterling reputations and offer loans with no origination fees or prepayment penalties. The tool will show your rates and monthly payments with absolute transparency, allowing you to make an informed decision that meets your financial needs.

Some of our lenders also allow parents to transfer their Parent PLUS and private student loans into their child’s name—this can be a great way to help your children take charge of their education and start building up a credit history.

It’s also important to consider that when you refinance Parent PLUS loans, you do give up access to federal benefits such as forbearance and Income-Driven Repayment. However, this is often not a dealbreaker for parents who have established careers and built up their savings.

Parent PLUS loan refinance interest rates, terms, and eligibility

Lender Eligibility Fixed
Terms Minimum Income Loan Limits
college ave student loans U.S. Citizen
or Permanent Resident
3.54% - 8.24% APR1 2.74% - 7.49% APR1 5-20 years $65,000 Min: $10,000
Max: $150,000
earnest student loans U.S. Citizen
or Permanent Resident
living in an eligible state
3.47% -7.59% APR2 2.27% - 6.89% APR2 5-20 years No minimum Min: $5,000
Max: $500,000
invested indiana student loans Indiana resident,
or non-resident graduate
of an Indiana school.
U.S. Citizen
or Permanent Residents only
3.69% - 7.44% APR3 3.04% - 6.68% APR3 5, 10, or 15 years $40,000 Min: $5,000
Max: $200,000
penfed student loan refinancing U.S. Citizen 4.50% - 6.03% APR4 4.12% - 7.48% APR4 5, 8, 12, or 15 years $42,000 Min: $7,500
Max: $300,000

What is the best student loan for you?

Use our rate comparison tool to find out

Parent PLUS loan refinance companies: highlights and key decision factors

College Ave

  • Extremely flexible terms–pick any term of your choosing between 5 and 20 years
  • Applicants must be the borrower or cosigner on the loan(s) being refinanced


  • Extremely flexible terms–pick any term of your choosing between 5 and 20 years
  • High maximum loan limit of $500,000
  • Applicants must currently reside in the District of Columbia or one of the 47 states Earnest lends in (all but Delaware, Kentucky, Nevada).
  • Earnest is not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX.
  • The debt must be from your eligible dependent’s education, and the degree must be complete (or will be completed by the end of this semester)
  • The debt is from paying for a Title IV-Accredited School
  • Earnest does not have a cosigner option

Earnest student loan refinance review


  • Cosigner release available after making 48 consecutive on-time payments
  • Loan forgiveness if borrower dies or is totally and permanently disabled
  • Active duty military deferment
  • Up to 24 months of temporary hardship deferment
  • Applicants must be a resident of Indiana
  • Applicants must be the borrower on the loan(s) being refinanced

InvestEd student loan refinance review


  • Spouse couples can combine loans into once refinance loan
  • Student loans can be transferred from a parent’s name to the child’s, or vice versa
  • Borrowers become a member of the credit union
  • Cosigner release available after just 12 consecutive on-time payments (not eligible for couple loans)
  • No formal forbearance policy – forbearance is considered on a case by case basis should the borrower encounter a financial hardship

PenFed student loan refinance review

Parent PLUS loan refinance basics

Top reasons to refinance Parent PLUS loans

All Parent PLUS loans get the same fixed rate, which is set every year by the federal government. For the 2018-2019 school year, the rate is 7.60%. If you qualify, you may find that you can save a substantial amount of money by refinancing at a lower rate.

When you refinance, you also get a chance to choose a new loan term. This flexibility lets you dial in the monthly payment (and your savings) exactly how you want it. Choosing a shorter term will result in the most interest savings, while choosing a longer term will result in the lowest monthly payment amount.

Refinancing also serves as a Parent PLUS loan consolidation—if you have multiple loans, federal or private, they all are combined into one easy-to-manage loan, with one monthly payment.

Parent PLUS loan consolidation vs Parent PLUS loan refinance

When you refinance Parent PLUS loans, you lose federal student loan benefits such as forbearance and Income-Driven Repayment. If this is important to you, another option you have is consolidating Parent PLUS loans with the federal government, through a Direct Consolidation Loan. This program consolidates all of your federal loans, and the new rate is based on the weighted average of your current loans. As such, there’s little chance you will save money. It’s also worth noting that federal Parent PLUS loan consolidation does not let you combine your federal loans with your private student loans – for that, you would need to refinance.

How to choose the best Parent PLUS loan refinance option

Using our rate comparison tool, you can easily tell which lenders are offering the best rate that is tailored to your financial profile—no teaser rates or “bait and switch” here. You can use our sortable chart to quickly see the best rates, and by entering your current loan details, you can compare monthly payments at the various term lengths on offer.

We also have a team of personal loan advisors who are available to help you through the process—if you have any questions, you can contact us by phone at 202.524.1115 or by email at

What to expect when you apply

Once you have decided on the lender for your Parent PLUS loan refinance, you will be taken to that lender’s application, which you can generally complete in less than 15 minutes. You’ve done enough loan applications to know what to expect, but one tip is to have your current loan statements handy—the lender will want to know the details.

If you are preapproved, you will need to submit documents to verify the information on your application—this usually includes an ID, paystub, and loan statements, but may include other documentation, depending on the lender’s guidelines. This will be a little more rigorous than something like an auto loan—to offer such low rates on unsecured loans (loans with no collateral), the underwriters have to do their due diligence.

1College Ave Rate Disclosure:

College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. College Ave Refi Education loans are not currently available to residents of Maine. The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation. $5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees. Information advertised valid as of 08/01/2019. Variable interest rates may increase after consummation.

2Earnest Rate Disclosure: 

Earnest's fixed rate loan rates range from 3.47% APR (with autopay) to 7.59% APR (with autopay). Variable rate loan rates range from 2.27% APR (with autopay) to 6.89% APR (with autopay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms of 10 years or less. For loan terms of 10 to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 0.31% and 4.71% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of August 14, 2019 and are subject to change based on market conditions and borrower eligibility.

3INvestEd Rate Disclosure: 

Loan terms available are 5 years/60 monthly payments, 10 years/120 monthly payments, 15 years/180 monthly payments, or 20 years/240 monthly payments. Rates are dependent on credit score, length of term and debt-to-income ratio. Fixed interest rates range from 3.69% to 7.44% (3.69% - 7.44% APR). Fixed APR examples are based on interest rates for July 1 – December 31, 2019. Variable interest rates range from 3.04% to 6.68% (3.04% - 6.68% APR). Variable APR examples are based on the quarterly interest rates effective August 1 - October 31, 2019. The variable interest rate that is charged to the borrower is reset quarterly, may increase or decrease, and is based on an Index and Margin. The Index is defined as the daily average of the three-month London Interbank Offered Rate (LIBOR) (currency in U.S. dollars) that was published on the Wall Street Journal website (or any generally recognized successor method or means of publication) on each business day during the following periods: December 21st through March 20th, March 21st through June 20th, June 21st through September 20th; and September 21st through December 20th. The daily average of the three-month LIBOR index for the period June 21st - September 20th, 2019 is 2.543%. Variable interest rates are subject to increase after consummation. The maximum variable interest rate is 18.00%. All loans are subject to approval. Please note: Rates, terms, and conditions are subject to change.

4PenFed Rate Disclosure:

Fixed Rate Loan Terms: 5 years/60 monthly payments, 8 years/96 monthly payments, 12 years/144 monthly payments or 15 years/180 monthly payments. Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed rates range from 3.48% to 6.03% APR [low to high range]. Variable rates range from 4.12% to 7.48% APR [low to high range]. Rates are subject to change without notice.

Fixed APR: Fixed rates will not change during the term. This rate is expressed as an APR. Since there are no fees associated with this loan offer, the APR is the same percentage as the actual interest rate of the loan.

Variable APR: Variable APR: Variable rates are based on the one-month London Interbank Offered Rate ("LIBOR") published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of September 1, 2019, the one-month LIBOR rate is 2.12%. Variable interest rates range from 4.12% - 7.48% (4.12% - 7.48% APR) and will fluctuate over the term of the borrower's loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. The maximum variable rate on the student refinance loan is 9.00% for 5-year and 8-year terms, and 10.00% for 12-year and 15-year terms. The floor rate is 2.00%. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.


All estimates are based on information provided by you and are for informational purposes only, accuracy is not guaranteed and may not reflect actual rates or savings and do not constitute an offer of credit. Your actual rate, payment and savings may be different based on credit history, actual interest rate, loan amount, and term, including your co-signer [if applicable]. If applying with a co-signer, we use the higher credit score between the borrower and the co-signer for approval purposes. All loans are subject to credit approval.

Purefy Student Loan Refinance Program is not offered or endorsed by any college or university. Purefy is not affiliated with and does not endorse any college or university listed on this website.

You should review the benefits of your federal student loan; it may offer specific benefits that a private refinance/consolidation loan may not offer. If you work in the private sector, are in the military or taking advantage of a federal department of relief program, such as income based repayment or public service forgiveness, you may not want to refinance, as these benefits do not transfer to private refinance/consolidation loans.

Purefy reserves the right to modify or discontinue products and benefits at any time without notice.