Private Parent Student Loan
- Fixed interest rate - 7.9%
- Borrow up to the cost of education
Until now, only students could qualify for most private student loans. Parents who wanted to help with college costs had to tap into other resources such as investments, home equity or other forms of consumer credit. While the majority of student loan options do fall on the student, there are some options besides PLUS loans for parents to help cover college costs.
Private Parent Loans
Some banks and lenders in your area may offer student loans for parents. One such option is Wells Fargo's Student Loan for Parents, which is available to help cover eligible school expenses. This loan is entirely in the parent's name but unlike the Parent PLUS loan, does not come with federal repayment benefits. Learn more about the Wells Fargo Parent Loan.
For more private parent loan options, check with local banks for available loans in your area.
Cosign a Private Student Loan
Did you know that more than 90% of private student loans today include credit-worthy cosigners? If you're looking for a great way to help your child pay for college, consider cosigning a private loan. While the loan would be in the student's name, cosigning a loan can help to reduce the interest rate, saving your family in the long run. Learn more about private student loans and cosigners.
Benefits of Cosigning:
- Cosigner release option. Most private student loans now offer the option to have a cosigner released after a certain number of on-time payments. Before cosigning for a student, this may be a good option to consider.
- Lower interest rates. In general, the better a borrower's credit, the better interest rate they can receive. Since most students have not built an adequate credit history, applying with a parent cosigner can help lower the interest rate of the loan.
- Greater chance of approval. Similarly, a student's chance of approval increases when applying with a credit-worthy cosigner, because it's a less-risky investment for the banks.