Parent Loan
Help pay for your child’s education with a custom parent loan with repayment flexibility and no origination fees. You can also get up to $2,500 of the loan1 delivered straight to you to control the spending on extra education expenses.
Variable Rates
1.04% - 11.98% APR
Fixed Rates
3.34% - 12.99% APR
(all rates shown include auto-pay discounts)2
Cosigning On a Loan vs. Taking Out a Parent Loan
As a parent, you want only the best for your child. Starting college can be an exciting milestone, and if you’re pitching in financially, you’ll want to explore all of your options. Many parents use student loans as a way to help pay for their kid’s college.
Read More
Rates & Repayments
Make your Payments work for you
The way you repay your parent loan drives how much you can save long-term. If you start making payments sooner, or pay more each month, you can lower the cost of the loan over time. But if your monthly budget requires an option that’s more flexible, we can guide you to a loan that works better for you.
Repayment Options
Interest Only Payment
Pay just the interest charges each month while your child is in school to manage your monthly budget.
- Lowest in-school payment
- Highest overall cost
Interest Plus Payment
As long as you cover at least the interest charges each month, we'll let you set your own monthly payment while your child is in school.3
- Moderate in-school payment
- Moderate overall cost
Full Principal & Interest Payment
Start repaying your principal and interest right away to save the most.
- Highest monthly payment
- Lowest overall cost
Repayment Options That Work For You
How many years will it take you to pay back your parent loan? We'll help you choose the right loan-term that works with your life.
Save More Overall
Save on total interest but make bigger monthly payments
Pay Less Monthly
Make smaller monthly payments but pay more in interest overall
of all customers choose a repayment term of 10 years or less
of borrowers are making on time payments
We Offer Major Help And Minor Stress
We’ll help guide you through the process to find the right loan term, interest rate, and payments right for you and the family budget.
No Surprises Here
Here are some key dates to plan for prior to sending your student off to school.
60 - 90 days
Shop around for the right loan using our prequalification tool to see your estimated rates.
30 - 45 days
By now, you should have received a tuition bill. Apply for a loan here in 3 minutes. When your loan is approved, we'll work with the school to certify the loan.
10 - 14 days
Make sure you've received confirmation that the money is scheduled to be sent to your school.
How We Compare With Other Lenders
Lenders
Comparisons based on information obtained on lenders' websites as of July 22, 2021.
11
None
None
Comparisons based on information obtained on lenders' websites as of July 22, 2021.
Additional Information About Parent Loans
-
What is a private parent student loan?
Private parent student loans come from private entities such as a bank or credit union. They are available to parents or guardians who want to take on the full responsibility for paying for any gaps in covering the expense of their child's education after financial aid, scholarships, and federal student loans.
Offered with a choice of fixed or variable interest rates, they cover education-related costs such as tuition and fees, room and board, books and supplies, and living expenses. Different lenders each have their own repayment plans.
A private parent student loan is taken out in the parent's name only and does not impact the credit or finances of the student. The parent is solely responsible for repayment of the loan. -
What's the difference between a Parent PLUS Loan and a private parent loan?
A Parent PLUS Loan is a federal loan available to parents to cover the costs of their child's education. A private parent loan is money a parent borrows from a private entity such as a bank or credit union to help pay for their child's degree.
Applied for via the FAFSA, Free Application for Federal Student Aid, a Parent PLUS Loan comes with a fixed interest rate for the life of the loan. Parent PLUS Loans also include an origination fee of 4.228% of the principal loan amount. That fee applies to loans originated between October 1, 2020, and October 1, 2021.
Private lenders each have their own application process, eligibility requirements, and interest rates are determined by credit and other financial criteria. Private parent student loans typically come with a choice of fixed or variable rates. Interest rates and fees on private parent loans are likely to vary from lender to lender and may be lower than Federal Parent PLUS loan interest rates and fees. -
How much can you take out in parent loans?
The borrowing limit for federal parent student loans is the cost of attendance after applying the student's other financial aid such as grants or scholarships.
Private lenders each set their own limits. The borrowing limit for our private parent student loans is up to 100% of the school-certified cost of attendance. -
Who is eligible for a private parent loan?
Eligibility for private parent loans may vary from lender to lender. College Ave's parent student loan is available to parents, grandparents, guardian or another family member like an aunt or uncle that wants to help cover the cost of the child's education. However, most approval requirements depend on the parent or guardian's credit history and income review.
-
Do you have to make payments on parent loans while your student is in school?
Repayment options depend on if you utilize a federal Parent PLUS Loan or a private parent loan, like one from College Ave.
College Ave's parent loans allow you to choose what payments work for your while your child is in school:
Interest-Only Payments - pay only the interest charges on your loan every month.
Interest Plus Payments - pay the interest on your loan and a set incremental amount every month.
Full Principal & Interest Payments - pay down the principal and interest on your loan to save the most money long-term.
If you have a federal Parent PLUS Loan, you will be expected to make payments on the loan once it's disbursed to your school. You may request a deferment on the loan. -
Where are parent loan funds disbursed?
With federal Parent PLUS and most private parent loans, the money is disbursed directly to the school. College Ave allows you to have up to $2,500 disbursed directly to you if you'd like to have more oversight into how additional expenses such as books, transportation, and school supplies are paid for.