Refinancing Parent Plus loans under graduate's name - success stories?

yes i did this last year!! my parents had 3 parent plus loans totaling like $45k and i refinanced with SoFi after 1 yr at my job. they gave me 5.4% interest which wasn't amazing but better than the 7.9% my parents had!! just know once u refinance u lose all the federal protections like income based repayment options etc

I helped my daughter do exactly this with her Parent Plus loans that I took out for her undergraduate degree. A few important points to consider: 1. This is technically not a "transfer" but a refinance through a private lender. Federal loan servicers are correct that Parent Plus loans cannot be transferred within the federal system. 2. We researched multiple lenders and found Earnest and CommonBond (besides SoFi mentioned above) were willing to refinance Parent Plus debt into her name. 3. Most lenders want to see 12+ months of employment history and a credit score above 700, which you have. They also look at debt-to-income ratio, so your $58K salary should support the refinance depending on your other debts. 4. The biggest downside is losing federal protections like income-driven repayment plans, deferment options, and potential loan forgiveness programs. This is a permanent change. 5. Compare rates carefully - some lenders offered my daughter significantly better rates than others for the exact same financial profile. I'd recommend applying to 3-4 private lenders to compare offers. Most do a soft credit pull for initial rate estimates which won't affect your credit score.

I tried this and got REJECTED by three different lenders because my income wasn't high enough compared to the loan amount. They all wanted to see at least 2 years of "stable employment" too. No one tells you how HARD this actually is to do!!!! Parent PLUS loans are basically a trap.

You might want to wait until you hit the 1-year mark at your job before applying. Most lenders have employment history requirements, and 8 months might be just short of their threshold. I've seen people get better refinance offers after 12-15 months of employment history versus trying at 8-10 months. Also, if your parents' financial situation is really dire, look into whether they qualify for an income-contingent repayment plan for their Parent PLUS loans. They would need to consolidate the Parent PLUS loans into a Direct Consolidation Loan first, then apply for ICR. It's not as good as the IDR plans available for student borrowers, but it's an option if refinancing isn't immediately possible.

I had a NIGHTMARE trying to reach anyone at my loan servicer when I was trying to figure this out for my mom's Parent Plus loans!! Kept getting disconnected or waiting for HOURS. I finally used Claimyr (claimyr.com) to get through to someone who could actually help explain my options. They have a demo video that shows how it works: https://youtu.be/TbC8dZQWYNQ Eventually I refinanced about $37k with Laurel Road because they offered the best rate (4.8%) and they only required 6 months of employment history at the time. Not sure if their policies have changed since then, but worth checking!

WAIT!!!!!! Before you refinance ANYTHING, make absolutely sure you understand what you're giving up!!!!! Federal Parent PLUS loans have way more protections than private loans. If your parents qualify for Public Service Loan Forgiveness or if there's ANY chance of more federal loan forgiveness in the future, refinancing will make them PERMANENTLY INELIGIBLE!!!! Instead, maybe just set up a personal arrangement where you send them money each month to cover the payments? That way the loans stay federal (keeping all protections) but you're still helping. This is what I do for my mom's PLUS loans - I pay her directly, she makes the payment, loans stay federal. WIN-WIN!

My brother refinanced our mom's Parent Plus loans with Citizens Bank after he graduated. he needed a cosigner tho because his credit wasn't good enough by himself. maybe you could get a cosigner if you're worried about being approved?

To follow up on your question about timing - my daughter was able to refinance with Earnest at the 9-month employment mark. They initially told her 12 months was required, but she called and explained her situation, provided proof of a recent salary increase, and they made an exception. So it's worth having conversations with lenders rather than just relying on their website criteria. The debt-to-income ratio is crucial. With your salary and minimal other debt, you should be in a good position. Most lenders want to see that your total monthly debt payments (including the new refinanced loan) don't exceed 40-45% of your monthly income. As others have mentioned, the major tradeoff is losing federal protections. For Parent PLUS loans specifically, these protections are more limited than direct student loans anyway, which made our decision easier. But do consider whether your parents might benefit from PSLF or other forgiveness options before proceeding.

Has anybody actually looked at whether this makes mathematical sense? I mean if your parents are close to retirement they might have a lower income soon which could qualify them for lower payments under ICR. If you refinance, you're stuck with the full payment no matter what. Just make sure you RUN THE NUMBERS before making this decision. I know ppl who regretted refinancing because they lost all flexibility when life circumstances changed!!

just fyi i forgot to mention in my first post - when i refinanced they gave me options for 5, 10, 15, or 20 year terms. the shorter terms had better interest rates but higher monthly payments. i went with 15 years to keep payments manageable but still not be paying it off until im 50 lol. shop around bc every lender has different term options!!