Although student loan refinancing rates are low, there are drawbacks to transferring Parent PLUS Loans to your child. Private student loans don’t have the same benefits as federal student loans.
Once the loan is refinanced, you’ll lose access to Parent PLUS Loan repayment options, like the income-contingent repayment plan, that cap the monthly bill at 20% of your discretionary income.
Refinancing also forces you to give up access to other federal benefits like the Public Service Loan Forgiveness Program, discharge due to disability and death, and forbearances that pause payments when you’re experiencing financial hardship. Read more about loan forgiveness options for Parent PLUS Loans.
Learn More: How do Parent PLUS Loans work?