Yes! Parents can refinance student loans, and for many parent borrowers, it’s one of the best financial moves available. If you took out Parent PLUS loans or co-signed private student loans, refinancing can lower your interest rate, reduce your monthly payment, or both.
Here’s how it works and what to watch for.
Refinancing Parent PLUS Loans
Parent PLUS loans are federal loans taken out by parents to help pay for their child’s undergraduate education. They come with relatively high interest rates — the 2025-2026 rate is 9.08% — and limited repayment flexibility compared to other federal loans.
Refinancing replaces your Parent PLUS loan with a new private loan at a potentially lower rate. Most student loan refinancing lenders accept Parent PLUS loans. The process works the same as any student loan refinance:
- Check your rates using a soft credit pull comparison tool (no credit score impact)
- Compare offers from multiple lenders on rate, term, and monthly payment
- Choose a lender and complete the full application
- The new lender pays off your Parent PLUS loan and you make payments to them instead
Can You Transfer the Loan to Your Child?
One of the most common questions from parent borrowers: can refinancing move the loan out of my name and into my child’s?
The answer depends on the lender. Some refinancing companies allow the student to refinance the parent’s loan into their own name, effectively transferring responsibility. This requires the student to:
- Have a completed degree
- Meet the lender’s credit and income requirements independently
- Apply for the refinance as the primary borrower
Not every lender offers this option, so check our lender reviews for details on which ones do.
What You Give Up When Refinancing Federal Parent PLUS Loans
Refinancing a federal loan into a private loan means losing access to certain federal benefits:
- Income-Contingent Repayment (ICR): The only IDR plan Parent PLUS loans qualify for (after consolidation). Monthly payments are capped at 20% of discretionary income.
- Public Service Loan Forgiveness (PSLF): If you work for a qualifying employer, your Parent PLUS loans could be forgiven after 120 payments under ICR.
- Deferment and forbearance: Federal options for temporary payment pauses don’t apply to private refinanced loans.
If you’re not pursuing PSLF or ICR, and your income is stable, refinancing away from the 9.08% federal rate almost always makes financial sense.
What Rates Can Parents Expect?
Parent borrowers with strong credit (720+) and stable income can typically qualify for refinancing rates significantly below the current Parent PLUS rate. Rates vary by lender, credit profile, and loan term, but the comparison is often dramatic:
- Current Parent PLUS rate: 9.08%
- Competitive refinance rates: potentially 5%–8% depending on your profile and term
The only way to know your actual rate is to check. Admire.org lets you compare rates from 20+ lenders in about two minutes with a soft credit check.
Bottom Line for Parent Borrowers
If you’re paying 7%+ on a Parent PLUS loan and you’re not pursuing PSLF, refinancing is worth exploring. The potential savings, especially on balances of $50,000 or more, can be substantial over the life of the loan. See today’s refinance rates and compare your options.
