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The key difference lies in who is taking responsibility for the loan.
When you co-sign, both parent and student are responsible for the loan. Co-signing may help your student qualify for a lower rate and may help their chances of approval since they typically don’t have much of a credit history.
For a Parent Student Loan, the parent/guardian and their cosigner, if applicable, take full responsibility. A parent loan will have no impact on your student’s credit and can also help reduce the debt burden on students.
Make sure you check out The Basics of SoFi's Private Student Loans for more information on Private Student Loans!
Parent PLUS is a federal loan program with generous deferment and forbearance availability and a less rigorous credit screen compared to most private loans. However, parents with strong credit and income may find much lower rates in the private loan market, especially after considering fees associated with Parent PLUS loans.
Each term offers the following four repayment options:
SoFi Private Student Loans can cover up to 100% of the school-certified cost of attendance, which typically includes things like tuition and food, books and supplies, room and board, transportation and personal expenses.
The minimum you can borrow is $1,000 (may be higher in specific states due to legal requirements—learn more here.)
While each Parent Student Loan is for one specific student per year, you are more than welcome to apply for or an additional loan for the same student for a different school year or additional Parent Student Loans for additional students.
No, they don’t, but they must be enrolled in a degree-seeking program at an eligible school and be attending classes at least half-time. Check out our full eligibility requirements to learn more.
If you choose the interest-only repayment option, your interest-only payments will begin 30 days after the loan is fully disbursed. Your full principal and interest payments will begin 30 days after the student has graduated or left school.
If you choose the immediate repayment option, your full principal and interest payments will begin 30 days after the loan is fully disbursed.
The school determines the number of disbursements. The school may disburse the loan all at once, or they may divide the loan into multiple disbursements.
Parent loans do not receive grace. However, parents who serve as co-signers for the Undergrad, Grad, or Grad Specialty (MBA/Law), do receive standard grace.