Ask Terry Questions Parent Plus Loan refinance

Parent Plus Loan refinance

By Terry Savage on February 10, 2019 | College Savings / Student Loans

I have a $200,000 parent plus loan at 7% that is in my name and my ex husband and I are repaying. We have been repaying for six years now $1700 month with like 23 years to go. I know …but no better investment than in my children. I want to refinance this to make the term shorter and get him on his own loan if possible to do that. Where do I go bank, is there specific places that do this. I realize it will now be a private loan and not a government loan. Thanks!

Terry Says

Well, PLUS loans are the most deadly.  They have no federal protections (such as deferment, or income based repayment) and they have the highest rates!  So I don’t blame you for wanting to refi.  There are two ways to do it — either refi the loan into the student’s name (if he or she has a good job and good credit) or just refi in your name.

I typically recommend — the site that pioneered this concept.  But first you might want to use this comparison tool at  Here’s a direct link to the page.  It not only has links to multiple refinancing options, but explains the process clearly.  You’ll be amazed at how much money you’ll save on interst!

Recent College Savings / Student Loans Questions



a personal
finance question