How to Transfer a Parent PLUS Loan to a Student

With college attendance costs going up, Parent PLUS Loans are a great way for you to help your children attend an affordable school. However, the downside is these loans can become difficult to pay back over time. What can you do then? Transfer the Parent PLUS Loan to the student. But, how can you do that?

Here is everything you need to know about how to transfer your Parent PLUS Loans to a student.

Can a Parent PLUS Loan Be Transferred to the Student?

Yes, your Parent PLUS Loan can be transferred to your child. The best way is to refinance the loan with a private lender under your child’s name. Not all lenders offer the option to refinance Parent PLUS Loans in another borrower’s name, so check with the lender beforehand to see if this is available for you.

>> MORE: Compare real refinance rates for parents

If your child can’t qualify for the refinance loan themselves, they can refinance with you as a cosigner. You’ll want to make sure the lender offers cosigner release options, however, if you want to be released from the loan in the future.

>> MORE: What is a student loan cosigner?

When to Transfer a Parent PLUS Loan to the Student

Before you transfer the loan, you have to make sure that both you and your child are in a position to do so. Here are some signs that you’re ready to transfer your Parent PLUS Loan.


If the Monthly Payments are Unaffordable

If you’re struggling to make monthly payments, it may be time to transfer the loan. If you decide to transfer, your refinanced loan might have a lower monthly payment. On the other hand, if your child takes over the loan completely, you’ll have no monthly payment. Thus, transferring the loan could free up money to pursue other financial goals and give you more freedom in your budget.

If Your Child is Ready to Handle the Debt

You’ll want to talk to your child to see if they can take on the extra student loan debt. One way to determine this is to look at their debt-to-income ratio. If your child has a steady income that covers their expenses and the debt payments, then they’re ready to take over the loan.

If You Don’t Plan on Pursuing Parent PLUS Loan Forgiveness

When you refinance a federal student loan, you lose your federal benefits. This includes loan forgiveness. Unless you don’t plan on using loan forgiveness benefits, it may not be a smart idea to refinance. Talk to your loan servicer about this for more information.

>> MORE: What is parent PLUS loan forgiveness: Everything you need to know

How to Transfer a Parent PLUS Loan to the Student

Before you can start the process, talk to your child about transferring the loan to their name. Remember that this is no simple matter. They’re taking on a huge financial and legal responsibility. So, make sure you’re both on the same page before you begin.

Like we said earlier, you can transfer the loan by refinancing it to the student’s name. When you refinance, you’re letting a new lender pay off your current loans, and you’ll take out a new loan to pay them back. On this new loan, you can score better terms such as a lower interest rate or a different repayment term.

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>> MORE: Compare real refinance rates for parents

Make Sure You Qualify

To get started, you first have to make sure you qualify. Most lenders have a credit score and income requirement you need to meet. Generally speaking, your credit score must be at least in the mid to high 600s to fulfill the credit requirement. Each lender may also have additional requirements specific to them. Talk to the lenders you’re interested in to see what else you have to do to qualify.

>> MORE: Check your qualification eligibility for parent loan refinancing

Shop Around for Loans with Sparrow

Next, you’ll want to shop around for loans to see what you prequalify for so you can compare the loan options available to you and their rates. Prequalifying is not the same as officially applying. In prequalification, lenders will do a soft credit check to see what rates they can offer you. This soft credit pull won’t affect your credit score.

Researching and applying for prequalification can take a lot of time if you’re doing it manually, but using Sparrow can speed up the process. With the Sparrow application, you’ll be matched with what refinance loans you best qualify for from our 15+ partnering lenders. You can then check out real rates, policies, and other features the lenders offer. You’ll even be able to compare them right on the website. From there, you can make your final decision.

Complete the Formal Loan Application

Once you’ve decided on a lender, go to their website so you can fill out and submit their official application. You will need to provide personal information and documents during the application process. Talk to the lender beforehand about what you need so you have these at the ready while you’re applying.

Best Lenders to Transfer Parent PLUS Loans to a Student

Finding the right refinance rate for your parent PLUS loans should be easy. Rather than searching for lenders one-by-one, we recommend starting the process with an automated student loan refinance search tool. After you complete the free Sparrow application, we’ll show you the rates and terms you’d qualify for with 17+ premier lenders.

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Nelnet Bank

Nelnet Bank offers student loan refinancing with a flexible forbearance policy in case of economic hardship.

Fixed APR range: 7.12% to 10.79%Variable APR range: 7.59% to 14.49%Minimum Credit Score: 640

Apply with Nelnet Bank.


SoFi is one of the largest student loan refinancing companies in the industry. They offer exclusive member benefits like career coaching, job search assistance, and wealth management among other things.

Fixed APR range: 4.49% to 8.99%Variable APR range: 4.49% to 8.99%Minimum Credit Score: Does not disclose

Apply with SoFi.

Final Thoughts from the Nest

Transferring a Parent PLUS Loan to your child is a big decision, but it can help you immensely. Begin today by filling out the Sparrow application. Let us help you find a great lender so you can make the best decision for you and your family.

Sparrow wants to give you the tools and confidence you need to improve your finances. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

*Rates updated as of 06/01/23. Interest rates shown may include a 0.25% autopay discount. Rates are subject to change. To view Nelnet Bank’s disclosures, visit here. To view SoFi’s disclosures, visit here.