You made an important financial decision to support your child’s education — and that commitment deserves clarity and confidence. If you have Parent PLUS loan payments due each month and they’re crunching your budget tighter than you’d like, you are not alone. Parent PLUS loans are some of the highest-interest federal education loans available. For 2025–2026, the interest rate is 8.94%, plus a 4.228% loan fee.
The high rate has a real impact on families. It doesn’t have to be permanent.
Why Parent PLUS Loans May Feel Heavy
Most parents see PLUS loans as a convenient way to cover college costs for their child but didn’t expect the repayment to weigh so heavily once their child graduated. Parent PLUS loans:
- Charge higher interest rates than almost any other federal student loan type – and many private student loans
- Begin accruing interest immediately
- Are fully the parent’s legal responsibility — not the student’s responsibility
And because federal loan repayment programs are built mainly for students, many parents don’t feel they have flexible or meaningful options. If you’ve ever thought, “There has to be a better way,” you’re right — in some cases, there is.
How Private Refinancing Can Help
Refinancing simply means replacing your current Parent PLUS loan with a new private loan at a (hopefully) lower interest rate and better terms. In many cases, refinancing can:
- Lower your monthly payment
- Reduce the total interest you pay over time
- Simplify repayment (especially if you have multiple loans)
- Allow the student to take on the loan going forward
This is especially meaningful once your child has graduated, is working, and is ready to take on repayment responsibility.
Can the Loan Be Put into the Student’s Name?
This is one of the most common questions — and the answer is, yes, but only through private refinancing. The federal system does not allow Parent PLUS loans to be “transferred” to the student directly.
However, if your student has steady income, and is building (or has built) credit, then he/she may qualify to refinance the Parent PLUS loan into their own name. This can be a turning point for families both emotionally and financially.
Consider Refinancing Through a Credit Union
Not all refinancing lenders approach borrowers the same way. Credit unions operate as member-owned cooperatives, not profit-maximizing banks. Their goal is to support member financial wellbeing — which often means:
- More competitive rates
- Lower or no fees
- Transparent terms
- Real, human support when you need guidance
We partner with credit unions nationwide to offer refinancing designed around your family’s goals, not shareholder returns.
When Refinancing May Not Be the Right Move
We believe in transparency, so remember: refinancing into a private loan eliminates federal loan benefits permanently.
You should not refinance if:
- You may qualify for Public Service Loan Forgiveness
- You need income-driven repayment flexibility tied to federal rules
- Your employment or income situation is unstable
Next Step: Check Your Rate
You can check your refinance options from our credit union partners with no hard credit pull and no obligation. You did something meaningful when you helped your student pursue their education. Take a few minutes to explore rates from credit unions focused on helping families succeed.
If refinancing helps you protect your own financial stability — retirement savings, home goals, peace of mind — then it’s not just a smart decision.
It’s an investment in your future, too. We’re here to help — one step at a time.
*Important: Please remember that federal loans do offer certain benefits and protections that do not transfer to a private loan. By refinancing your federal student loans to a private loan you will lose any federal benefits that may apply to you. Please review this important disclosure for more information.
Loans subject to credit approval and additional criteria. Carefully consider whether consolidating your existing student loan debt is the right choice for you. Any reduction in your monthly payment may result from a lower interest rate, a longer repayment term, or both. Extending the loan term could increase the total interest paid over time.
