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College tuition is skyrocketing, ranging from $27,100 to $58,600 a year, depending on whether your school is public or private. That often means students can’t afford the bill on their own, even with scholarships, grants, and federal financial aid.
When this happens, parents can help. This may involve dipping into savings or retirement accounts or, in many cases, taking out loans.
There are two ways to do this: first, parents can co-sign a loan on behalf of the student, ensuring that both parties are responsible for the reimbursement. There is also parental loanswhich are loans reserved for parents of students.
If you are considering a private student loan When it comes to your child’s college tuition, it’s essential to do your research to determine the best lenders to use. Below, we’ll break down a few to consider, broken down into six categories.
Start by comparing the best student loan rates for parents available here now.
Best Student Loans for Parents:
Here are some of the best student loans for parents to consider for the upcoming semester:
Best Overall: SoFi
SoFi Online Bank is a great choice if you’re looking for a parent loan. There are multiple repayment options, four loan terms, and no fees. The loans also come with competitive interest rates and a 0.25% cashback if you set up autopay.
SoFi members also have access to exclusive benefits and you can earn rewards points to help pay down your balance.
Learn more about SoFi here now.
Best for Low Rates: College Ave
If you want the lowest interest rates, College Ave is your best bet. Its parent loans start at just 3.89% on fixed-rate loans and 5.59% on variable-rate loans, including an autopay discount.
The application process takes just three minutes and you can choose between two terms and multiple repayment options. College Ave does not charge any application fees.
Find out online today what rate you can get with College Ave.
Best for parents with good credit: Sallie Mae
Sallie Mae doesn’t offer loans to parents, but it does offer loans that you can cosign for your child. In fact, the lender says that 88% of its loans are cosigned. Rates range from 3.99% to 16.46% and cover undergraduate, graduate, and professional students. There are also no application fees.
Learn more about co-signing a loan with Sallie Mae here.
Best No Fee: Earnest
If you want to avoid fees, Earnest is a good lender. It doesn’t offer loans to parents, but its cosigned loans are free, including late payment fees. There are also a number of repayment plans (including a $25-per-month flat-rate option that’s popular with borrowers), and you can check your eligibility in just two minutes. The lender also offers a lengthy nine-month grace period for payments after graduation.
Get started with Earnest online now.
Best for low application fees: Ascent
Ascent charges no fees: no application fees, no origination fees, no disbursement fees, and there are no prepayment penalties either.
Parental loans are available in five terms and feature a 0.25% discount for autopay. Rates start at just 4.70% for fixed-rate loans.
Get started with Ascent here.
Best for Parents with Bad Credit: LendKey
If you have bad credit, it can be difficult to qualify for a student loan for your child — and co-signing on a loan won’t help you much either. In this case, using an option like LendKey, which gives you access to loan options from multiple lenders at once, can be a smart move. This allows you to compare offers and get the best deal.
Compare your options
Private student loans can be more expensive than federal loansSo it’s important to shop around before choosing a lender. Look at a few options and compare repayment terms, rates, fees, and other details to make sure you’re getting the best deal.
