Private Parent Loans
Send your kids to college
could help you pay for their education.
What’s a Private Parent Loan?
A loan for parents, guardians, or sponsors to help cover the cost of a child’s education. It differs from a cosigned loan because only the parent is responsible for paying it back.
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Get the FAQs on Earnest Private Parent Loans
An Earnest Private Parent Loan is a type of student loan designed for parents, guardians, and sponsors who want to pay for a student’s education. If you are a parent or know a student and want to help them pay for college, you may want to consider an Earnest Private Parent Loan.
To learn more about private student loans, this Credit Karma article is a good resource.
A parent student loan and cosigned student loan are two different types of loans.
With a cosigned loan, both the borrower and the student are financially responsible for the loan. Due to a lack of credit history, most students need a qualifying and creditworthy cosigner to help them get a private student loan. Some students who have an adverse credit history may also require a cosigner to get approved for a loan.
Both the loan borrower and the student will see the cosigned loan reflected on their credit reports. If any loan payments are missed, both the cosigner and the student might see their credit score impacted.
A parent loan is a loan you take out independently, and you are the only person financially responsible for paying it off. The student is not legally responsible for loan payments and the loan will not appear on their credit report.
An Earnest Private Parent Loan is issued by a private lender, while a Parent PLUS Loan is issued by the government for parents of dependent undergraduate students. It is a federal student loan designed for the parent borrower to help them pay for the college expenses of undergraduate students.
In the case of a Parent PLUS Student Loan, only a biological or adoptive parent (in some cases a stepparent) can take out this loan from the federal government. Another key difference is that a Direct PLUS Loan includes an endorser option. According to studentaid.gov, an endorser is someone who agrees to pay the loan if the original borrower cannot repay it.
When it comes to a private student loan, such as the Earnest Private Parent Loan, the definition is more broad. You do not have to be a parent to apply. You could be a guardian, relative, or someone who wants to send a student to college.
Before you begin your loan application, review this checklist of loan eligibility requirements. For a complete list of requirements, please visit our eligibility page.
You must be:
- 18 years or older
- In Alabama and Nebraska, you must be 19 or older, and in Mississippi, 21 or older
- A U.S. citizen or permanent resident
- Have a FICO that is at least 650 or greater
- Make at least $35,000 per year
Note: Open to all states, except Nevada
The student must be:
- Student is enrolled in school full-time for College Freshmen, Sophomores and Juniors, at least half-time for College Seniors. There’s no enrollment requirement for Graduate students.
- Student is pursuing a Bachelor’s or Graduate degree.
- School is a Title IV-qualified, not-for-profit, 4-year institution.
You can borrow between $1,000 (minimum loan amount) up to your total cost of attendance in loan funds.
Before applying for any private student loan, make sure your student has visited the financial aid office and has applied for student financial aid to cover their educational expenses.
1) Encourage your student to apply for scholarships, grants, and work-study opportunities.
2) Make sure your student fills out a FAFSA® (Free Application for Federal Student Aid) for the upcoming academic year and takes advantage of unsubsidized loans from the federal government. Students don’t need a credit check or a cosigner to take out a federal student loan and filling out the FAFSA is the first step in gaining access to a federal student loan.
3) Review Parent PLUS Loans and other federal loan options before you apply for a private parent student loan.
To learn more about federal student loan programs, visit the U.S. Department of Education.
If you applied for federal aid and still need to cover the cost of attendance, a private student loan may be for you.
Federal student loan benefits:
You get certain protections that private student loans may not offer, such as income-based loan repayment, deferment, student loan forgiveness such as public service loan forgiveness, and forbearance if repaying becomes too difficult.
You can visit studentaid.gov to learn more about federal financial aid.
Earnest Private Parent Loan benefits:
Private student loans may offer you a lower interest rate, flexible repayment options, and a longer deferral period or grace period. Some private lenders, like Earnest, don’t charge an origination fee while some federal student loans do. We also give a 0.25% APR discount with enrollment in the automatic monthly payment program. Another Earnest benefit is that we will never pass your loan to another loan servicer. Your loans are serviced in-house for the life of the loan.
Both Parent PLUS Loans and Earnest Private Parent Loans cover up to the cost of attendance but may have varying loan limits.
An Earnest Private Parent Loan offers flexible repayment plans and loan terms. Here are the four available options:
- Deferred:$0 is due while you’re in school and for the first 9 months after graduation. 9 months following graduation, the full minimum monthly payments will be due. The option results in the highest accrued interest and the highest total cost of the loan.
While in school and for the 9 months following graduation, you’ll make monthly payments of $25. Nine months following your graduation the full minimum monthly payments will be due.
- Interest-only: (This option is available for cosigned loans only.) While in school and for the 9 months following graduation, you’ll make monthly payments to cover the interest that accrued on your loan since the last payment. Nine months following your graduation the full minimum monthly payments will be due.
- Full payment (This option is available for cosigned loans only.) While in school and following graduation the full minimum monthly payments will be due. This repayment term option will enable you to pay the least amount of interest during the life of the loan.
We send a check directly to your student’s college, in a process called disbursement. You can learn more about student loan disbursement here.
You can choose between a fixed interest rate or a variable APR. We are proud to offer some of the lowest starting rates for Private Parent Loans.
Clients can always call our Client Happiness team for help in extenuating circumstances. We have offered relief during the COVID-19 pandemic and do our best to ensure our clients are successful in paying off their loans.
If you would like to lower payments or pay off your loan faster, refinancing may be a good option. We currently offer low-rate student loan refinancing with flexible payments and terms.
Although you can consolidate student loans through refinancing, we do not currently offer consolidation as a stand-alone service.