{"id":17121,"date":"2024-02-06T18:58:10","date_gmt":"2024-02-07T00:58:10","guid":{"rendered":"https:\/\/www.fitbux.com\/articles\/?p=17121"},"modified":"2024-02-06T19:06:26","modified_gmt":"2024-02-07T01:06:26","slug":"refinance-parent-plus-student-loans","status":"publish","type":"post","link":"https:\/\/www.fitbux.com\/articles\/refinance-parent-plus-student-loans\/","title":{"rendered":"How to Refinance Parent Plus Student Loans"},"content":{"rendered":"

At FitBUX, we’ve helped thousands of parents with Parent Plus loans.\u00a0 We get asked all the time about how to transfer parent plus loans to a student or how can you get a lower interest rate on a parent plus loan.\u00a0 The only way to do so is by refinancing.<\/p>\n

Therefore, the next question we get is how to refinance Parent Plus Loans. Refinancing Parent Plus loans is free.\u00a0 Also, the process will be similar to a normal student loan refinance except with a few extra steps. In this article, we’ll be going over those steps and how you can start that process today.<\/p>\n

You’ll first need to know what exactly a Parent Plus Loan is in order to understand what you’ll have to do to refinance it.<\/p>\n

What is a Parent Plus Loan?<\/h2>\n

A Parent Plus Loan is a type of federal student loan available to the parents<\/strong> of dependent undergraduate students.<\/p>\n

The U.S. Department of Education offers these loans as part of its Direct Loan program. The purpose of a Parent Plus Loan is to help pay for education expenses not covered by other financial aid. It’s important to note that while the loan is issued to the parent, it’s meant to support the financial needs of the student for their educational journey. Unlike other forms of student loans, the repayment and legal responsibility fall onto the parents, not the student.<\/strong><\/span><\/p>\n

Should you Refinance the Parent Plus Loan?<\/h2>\n

A lot of whether you should refinance or not will depend on what your goals are for that loan. If you’re looking to pay it off as soon as you can and simply trying to lower the rates as much as you can, then answer would be yes, you should at least look into refinancing to see if it’s worth doing so.<\/p>\n

Just note, refinancing will turn those federal loans into a private loan and being a private loans, there’s more limitations as far as repayment plans go and losing out on the federal protections.<\/p>\n

If you’re curious on if this is right for your situation, please don’t hesitate to reach out to our financial experts at FitBUX <\/a>and we’d be happy to walk you through the different companies we partner with such as Splash Financial<\/a>, SoFi<\/a>, and Laurel Road<\/a>.<\/p>\n

How to Refinance a Parent Plus Loan<\/h2>\n

There are 2 different avenues you can go about refinancing a Parent Plus Loan. The first way is when the parent begins the process. The other way will be through the student.\u00a0 Also, you’ll have to decide, are you refinancing the loan and its going to stay in the parents name or is it going to be in the students name?<\/p>\n

For example, on Splash<\/a>, a popular refinancing company we’re partnered with, this is how the process would look if you were to begin the process:<\/p>\n

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Steps to Refinance Parent Plus Loans:<\/h3>\n
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  1. Two different ways to refinance Parent Plus loan: either initiated by the parent or the student. If you are not transferring the loan to the child, simply apply and proceed with the application. If you are transferring it to the student or are the student proceed to step 2.<\/li>\n
  2. If you’re the student, you need to have your master promissory notes which serves as evidence that the loan was for your education.<\/li>\n
  3. The student would need to fill out the borrower affidavit which confirms they are taking over the debt of their parent that was acquired for their education.<\/li>\n
  4. Once the affidavit is filled, you can proceed to fill out the application, and eventually, check rates.<\/li>\n<\/ol>\n<\/div>\n

    Benefits to Refinancing Parent Plus Loans<\/h2>\n

    There are numerous benefits to refinancing the Parent Plus Loans into a private loan.<\/p>\n

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    Key Points:<\/strong><\/h3>\n