Parent Loans vs Private Student Loans
In this head to head matchup, we compare Parent Loans offered through the federal government and private student loans offered through a private student loan company.
|Parent PLUS Loan||Private Student Loan|
|Borrower||Parent of a dependent undergraduate student||Student
(Private lenders also offer Parent Loans, which are a lower cost alternative to Parent PLUS Loans and are available for both undergraduate and graduate programs)
|Co-Signer Required||If parent has adverse credit history||Dependent on student’s credit history, ability to repay the student loan and financial responsibility
|Credit Underwriting||No adverse credit history; otherwise all borrowers receive the same fixed rate ||Favorable credit can mean a lower student loan interest rate; everyone gets their own individual student loan interest rate
|Lender||U.S. Federal Government (Department of Education)||Private student loan company|
|Interest Rate Offered||Fixed||Fixed or Variable|
|Origination / Loan Fees||4.272% (2016-2016)||Varies by lender (typically lower than Parent PLUS Loan)
|Grace Period / Deferment Options||Yes||Yes, varies by lender|
|Forbearance options||3-year limit||Varies by lender|
|Repayment Term||10 - 30 years||5 - 25 years|
New Student Loans and Parent Loans
Do you need an undergraduate student loan, graduate school student loan or Parent Loan?
If you are a current or incoming undergraduate or graduate student (or the parent of one), there are other options in addition to federal student loans to help you pay for school. Based on your credit profile and financial background (and, if applicable, that of a qualified co-signer), you could save significant money compared with a traditional, big bank.
Students Loans are available for both graduate students (business, medicine, dental, law, pharmacy, and other graduate programs) as well as undergraduate students.
Parent Loans are a good option for parents with strong credit who want to borrow the cost of their child’s graduate or undergraduate education.
We have identified our top new student loans and Parent Loans in 2017. You can learn more about student loans, parent loans, student loan interest rates, loan terms and more.
New Student Loans & Parent Loans – Best of the Best
|Lender||Rates (APR)||Loan Terms (Years)||Get Your Rate||Loan Type||Learn More|
|2.90% - 7.75%||5, 10||2 minutes||Parent||START SAVING|
|4.07% - 11.35%||5, 10, 12, 15||2 minutes||Graduate, Undergraduate, Parent||START SAVING|
|4.45% - 6.67||10, 15, 20||2 minutes||MBA||START SAVING|
|3.28% - 7.24%||5, 10, 15, 20||2 minutes||Graduate, Undergraduate||START SAVING|
*Make Lemonade is not a lender and does not make loans. We are a free, independent and unbiased website that helps empower borrowers so they can make more informed financial decisions. The rates, terms and other student loan information provided on this website do not legally bind Make Lemonade or the lenders referenced herein. The rates, terms and other student loan information are estimates and may change periodically and/or differ from your final rate and terms, which may be based on your individual credit profile and other factors as determined solely by the lender. If you would like to apply for a loan, please visit the website(s) of each lender and carefully review their rates, terms and conditions for further information. Average savings is for all customers generally, and not necessarily for this product specifically.