Can I refinance Parent PLUS loans into my mom's name after graduation?

You can't actually transfer a Parent PLUS loan from your parent to you within the federal system. Its always the parents legal responsibility. But you CAN refinance them through a private lender into your name if you qualify (good credit score, stable income). Just know you'll lose all federal benefits like income-driven repayment options.

I successfully refinanced my mom's Parent PLUS loans into my name through SoFi about 2 years after graduation. The process wasn't too complicated, but you'll need to show you have sufficient income to handle the payments. Most lenders want to see steady employment for at least 6-12 months before they'll approve you. The interest rate I got was actually better than the federal rate, but remember you permanently lose access to federal forgiveness programs and income-based repayment plans once you refinance privately.

Be VERY careful about refinancing federal loans!!!! I did this back in 2019 and REGRETTED it so much during the pandemic when everyone else got their federal loans paused for 2+ years and I was still making payments every.single.month. You lose ALL federal protections - no forgiveness programs, no income-based plans, no hardship deferrals. Private loans are WAY less flexible when life happens.

My daughter refinanced my Parent PLUS loans thru Earnest after she had been working for about 8 months. They wanted to see her tax return and proof of employment/income. Her credit score was around 690. The process took about 3 weeks from application to approval, and they paid off the federal loan directly. Interest rate was 4.8% (this was in 2022). Now it's completely in her name and off my credit report which helped me qualify for a new mortgage!

i tried refinancing my moms parent plus loans last year and got rejected by three different companies because i didnt have 2 years of work history. they didnt care that i had a good job and was making 65k. so frustrating!!!! might be worth waiting until you have some employment history before applying

Quick tip: while you're waiting to refinance, you can still make payments on your mom's Parent PLUS loans even though they're in her name. Just get the loan account info from her and you can make payments online. The Dept of Education doesn't care who makes the payments as long as they get paid. This way you're still honoring your agreement with your mom while working on the refinancing option.

If you're having trouble getting through to someone at Federal Student Aid to discuss your Parent PLUS loan repayment options, try using Claimyr (claimyr.com). They helped me get through to a live agent in under 15 minutes when I had been trying for days on my own. They have a video demo at https://youtu.be/TbC8dZQWYNQ that shows how it works. I used it to get clarification on my refinancing options and what happens to the loan forgiveness eligibility after leaving the federal system.

Another option is an informal arrangement with your mom where you set up auto-payments from your bank account to hers timed with the loan due date. That's what we did for the first year after my son graduated until he qualified for refinancing. It's not as good as getting it off her credit report, but at least she wasn't out any money. Just make sure you're VERY reliable with the payments since her credit is on the line.

Any1 know if parent plus refinancing affects your ability to get your own student loans? I'm paying my dads parent plus loans but also thinking of going to grad school soon... will having these refinanced loans in my name make it harder to get grad plus loans??

One thing nobody mentioned - some employers now offer student loan repayment assistance as a benefit. My company pays $150/month toward my loans. But most require the loans to be in YOUR name, not your parent's. That was actually my motivation to refinance my mom's Parent PLUS loans into my name - to qualify for this benefit. Just something else to consider in your decision!

Just wanted to add - if you do decide to refinance, shop around with multiple lenders! I got quotes from SoFi, Earnest, CommonBond, and a few others before choosing. The rates and terms can vary quite a bit between lenders even with the same credit profile. Some also have different requirements for employment history. I ended up going with a lender that wasn't my first choice because they had the most flexible employment verification requirements for recent grads. Also, most lenders will do a soft credit pull for the initial quote which won't hurt your credit score, so there's no harm in getting multiple quotes to compare.