To help finance their kid’s way through college, many parents take on debt in the form of high-interest Parent PLUS loans issued by the federal government. These credits can help you fulfill the desire to obtain a university degree at any of its different levels. And in the different institutions of higher education in the country.
Parent PLUS loans are a type of student loan taken out in the name of a parent who holds full responsibility for payment of the loan(s).
One way to pay off a Parent PLUS loan faster than the standard 10-year repayment term is to refinance through a private lender. If you qualify, refinancing can help you get a lower interest rate so you can chip away at the debt more quickly while saving money on interest over the long term.
Another perk for parents who are looking to hand off financial responsibility to their adult children: Refinancing is the only way to transfer Parent PLUS loans into your child’s name. While you can refinance Parent PLUS loans in your name, you can also choose to have your child take over the loan repayment by refinancing it in their name.
There’s one big caveat: Parent PLUS loans are a type of federal loan that qualifies for the current federal student loan payment and interest freeze. We do not recommend that you consider refinancing your Parent PLUS loans until the forbearance ends on Sept. 30, 2021.
Unfortunately, not all private lenders allow Parent PLUS loan refinancing — Education Loan Finance Student Loan Refinancing does. Borrowers can refinance their Parent PLUS loans, and even combine them with their private student loans. For this reason, Select ranked Education Loan Finance (ELFI) on our list of the top student loan refinance companies.
Read on for the full details of ELFI’s Student Loan Refinancing, including the APRs, perks, fees, loan amounts and term lengths. (See our methodology for more information on how we choose the best student loan refinance companies.)
Education Loan Finance Student Loan Refinancing review
- Loan amounts
- Term lengths
- Bottom line