Sending your kids off to college can be an entire journey in itself. However, it can also be an expensive one. With the growing economy, so are all the other expenditures and college tuition fee is no exception for this. The fee for college is going so abnormally high that student loans and parent loans for college fee payment have become extremely normal. The percentage of parent federal PLUS loan borrowers has grown to become a staggering 385% between 1989-90 and 2011-12, which started from a mere 4.1% of all the federal student loan borrowers to 19.9% as per a report. However, it is important that when you apply for a college loan for parents you make your plan properly so that it doesn’t interfere with the plans of your retirement and in a way that you can receive maximum benefits. Analyze parent student loan rates properly before making the final decision. Here are some of the options you can refer to:
- Federal Direct PLUS loans: It is one of the most reputable options one can seek for a parent loan as it comes from a reputable lender. The government has been known to be lending the parent PLUS loans since 1980. It comes with 6.31% fixed interest for 2016-17, 4.28% origination fee for 2016-17 and extends for a 10-year long term.
- SoFi parent loans: It has been established only in 2011, but is still quite known for providing the parents with some of the lowest interest rates available in the market. It has a variable annual percentage rate that goes between 2.95% and 6.13%; with a fixed APR of 4.25% to 7.75%. Absolutely no origination fee is required and the loan terms can be chosen for a time period of 5 or 10 years.
- College Ave parent loans: The APR is variable and can lie between 4.03% and 6.03%. Just like SoFi parent loans, absolutely no origination fee is required and the loan terms can extend from 5 years to 12 years.