Parent Loans vs Private Student Loans

By Mentor Staff | Edited By Mentor Staff

Updated On October 29, 2021

Editorial Note: This content is based solely on the author's opinions and is not provided, approved, endorsed or reviewed by any financial institution or partner.

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In this head to head matchup, we compare Parent Loans offered through the federal government and private student loans offered through a private student loan company.

New Student Loans and Parent Loans

Do you need an undergraduate student loan, graduate school student loan or Parent Loan?

If you are a current or incoming undergraduate or graduate student (or the parent of one), there are other options in addition to federal student loans to help you pay for school. Based on your credit profile and financial background (and, if applicable, that of a qualified co-signer), you could save significant money compared with a traditional, big bank.

Students Loans are available for both graduate students (business, medicine, dental, law, pharmacy, and other graduate programs) as well as undergraduate students.

Parent Loans are a good option for parents with strong credit who want to borrow the cost of their child’s graduate or undergraduate education.

We have identified our top new student loans and Parent Loans in 2018. You can learn more about student loans, parent loans, student loan interest rates, loan terms and more.

Top Picks For Private Student Loans

December 2022

Variable APR ?APR, or Annual Percentage Rate, is the price you pay to borrow money. Variable APR means that your interest rate can fluctuate over time, which can increase or decrease your monthly student loan payment. Typically, a variable-rate loan has a lower introductory rate than a fixed-loan rate loan. Variable APR includes a 0.25% discount when you enroll in autopay.
Fixed APR ?APR, or Annual Percentage Rate, is the price you pay to borrow money. Fixed APR means that your interest rate will always stay the same. Even if interest rates change, your interest rate or monthly payment will not. Fixed APR includes a 0.25% discount when you enroll in autopay.
APR
3.24% - 14.86%
3.99% - 14.96%
3.24% - 14.96%

View Details

on College Ave's website

Overview

Variable APR:
3.24% - 14.86%
Fixed APR:
3.99% - 14.96%
Loan Type:
Graduate, Undergraduate
Minimum Loan Amount:
$1,000
Loan Terms:
5, 8, 10, 15 years
Origination Fees:
No
Prepayment Fees:
No
Co-signer Option:
No

Details

  • Student loans available to graduate, bachelors and associates degrees
  • Deferment and forbearance options may be available
  • Grace period for undergraduates: 6 months
  • Grace period for graduate students: 9 months
  • Flexible student loan repayment options
4.49% - 13.88%
4.99% - 14.83%
4.49% - 14.83%

View Details

on SoFi's website

Overview

Variable APR:
4.49% - 13.88%
Fixed APR:
4.99% - 14.83%
Loan Type:
Graduate, Undergraduate
Minimum Loan Amount:
$5,000
Loan Terms:
5, 10 and 15 years
Origination Fees:
None
Prepayment Fees:
None
Co-signer Option:
Yes

Details

  • Offer college, graduate school, law school, MBA and Parent student loans
  • Flexible repayment options
  • No late fees
  • Autopay rate discount
  • Free perks such as career planning and job search assistance
4.36% - 10.24%
3.99% - 10.32%
3.99% - 10.32%

View Details

on LendKey's website

Overview

Variable APR:
4.36% - 10.24%
Fixed APR:
3.99% - 10.32%
Loan Type:
Graduate, Undergraduate
Minimum Loan Amount:
$5,000
Loan Terms:
10
Origination Fees:
No
Prepayment Fees:
No
Co-signer Option:
Yes

Details

  • Low rates from community lenders like credit unions and community banks
  • Get lower rates with a co-signer
  • Ability to pause payments for up to 18 months if you become unemployed
  • May consider your academic credentials to help you get a lower rate
  • If you repay 10% of your loan before your loan enters full repayment period, 1.0% APR is dropped from your current interest rate
5.49% - 12.62%
5.99% - 12.85%
5.49% - 12.85%

View Details

on Citizens' website

Overview

Variable APR:
5.49% - 12.62%
Fixed APR:
5.99% - 12.85%
Loan Type:
Graduate, Undergraduate
Minimum Loan Amount:
$1,000
Loan Terms:
5, 10, 15 years
Origination Fees:
None
Prepayment Fees:
None
Co-signer Option:
Yes

Details

  • Student loans for college, graduate, medical/dental, law, MBA and Parent Loans
  • Flexible repayment options
  • Multi-year approval: no need to apply annually
  • Cosigner option
  • Forbearance and deferment options
4.72% - 14.98%
4.62% - 16.75%
4.62% - 16.75%

View Details

on Ascent's website

Overview

Variable APR:
4.72% - 14.98%
Fixed APR:
4.62% - 16.75%
Loan Type:
Graduate, Undergraduate
Minimum Loan Amount:
$2,001
Loan Terms:
5, 7, 10, 12, 15, 20 years
Origination Fees:
No
Prepayment Fees:
No
Co-signer Option:
Yes

Details

  • Student loan repayment while in school
  • 1% cash back on student loan principal at graduation
  • Co-signer release after 12 consecutive payments
  • Financial hardship forbearance available
  • No minimum income or credit score
  • Apply with or without a co-signer

Disclosures: College Ave | SoFi | LendKey | Citizens | Ascent

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