Earnest parent PLUS refinancing review: what parents and students need to know
Earnest offers a competitive Parent PLUS refinancing option known for its precision pricing and flexible terms, making it a strong choice for parents with good credit who want to lower their interest rate below the current federal PLUS rate. While refinancing means trading federal protections for private terms, the move can significantly improve family cash flow and reduce the total cost of borrowing.
For parents and students managing education debt together, refinancing is a strategic decision. It can alleviate the immediate monthly burden on the family budget and simplify the long-term repayment plan, especially if the student intends to contribute to payments after graduation. However, it requires a careful look at credit eligibility and the loss of federal benefits like Income-Contingent Repayment (ICR).
In this review, you will learn exactly how Earnest’s eligibility requirements work, what rates and terms you can expect, and how their unique features—like the ability to skip a payment—compare to other lenders. By the end, you’ll know whether Earnest’s Parent PLUS refinancing fits your situation and how to proceed with confidence.
Why refinancing parent PLUS loans matters
Parent PLUS loans often carry the highest interest rates of all federal student loans. According to StudentAid.gov, Parent PLUS loans disbursed between July 1, 2024, and June 30, 2025, carry a fixed interest rate of 9.08%. For many families, this high rate inflates the cost of borrowing significantly over a standard 10-year term, creating a heavy drag on monthly cash flow.
Refinancing allows you to pay off existing federal loans with a new private loan, ideally at a lower interest rate. This shift matters because even a small reduction in your rate can save thousands of dollars over the life of the loan. For families balancing retirement savings or other financial goals, reclaiming that money is crucial. However, it is vital to remember that refinancing is irreversible: once you refinance, you lose access to federal protections such as Public Service Loan Forgiveness (PSLF) and income-driven repayment (IDR) plans. You can learn more about these trade-offs in our Parent PLUS Loans guide.
Refinancing $30,000 from the 9.08% federal PLUS rate to approximately 6.50% fixed on a 10-year term could reduce monthly payments by roughly $40 and save approximately $4,800 in total interest over the life of the loan. (Assumes standard repayment schedules and excellent credit qualification).
At a glance: is Earnest parent PLUS refinancing right for you?
Before diving into the application process, it is essential to verify that refinancing aligns with your financial strategy. Specifically, you must be comfortable giving up federal benefits like access to Income-Contingent Repayment (ICR) or potential forgiveness programs in exchange for a lower rate.
Check the boxes that apply to you:
- [ ] You have a good to excellent credit score (typically 650+).
- [ ] You have stable income and employment history.
- [ ] You are NOT pursuing Public Service Loan Forgiveness (PSLF).
- [ ] Your Parent PLUS loan balance is at least $5,000.
- [ ] You want an interest rate lower than the current federal PLUS rate.
Verdict: If you checked 3 or more boxes, comparing rates makes financial sense. If you rely on federal repayment flexibility, keeping your current loan may be wiser.
Earnest parent PLUS refinancing: pros and cons
Earnest distinguishes itself in the private lending market with features designed to customize the borrowing experience. However, like all private lenders, there are inherent trade-offs compared to the federal system. Here is a balanced look at the strengths and weaknesses of choosing Earnest.
- Precision Pricing: Earnest uses a unique algorithm to offer rates customized to your specific financial profile, rather than fitting you into broad credit tiers.
- Flexible Terms: Borrowers can choose terms ranging from 5 to 20 years and even customize their exact monthly payment amount.
- No Fees: There are no origination fees, application fees, or prepayment penalties.
- Skip-a-Payment: Eligible borrowers can skip one payment every 12 months (after making on-time payments for a year).
- Rate Check: You can check your eligibility and rate with a soft credit pull that does not impact your credit score.
- Loss of Federal Protections: You lose access to federal deferment, forbearance, IDR plans, and forgiveness options.
- Strict Eligibility: Requires good credit and stable financial history; those with recent bankruptcies or low credit scores may be denied.
- No Cosigner Release: Unlike some competitors, Earnest does not offer a cosigner release option, meaning the primary borrower remains responsible until the loan is paid off.
- Variable Rate Risk: While variable rates may start lower, they can increase over time, potentially raising your monthly payment.
According to Mark Kantrowitz, financial aid expert, “Private loans can be a good option when federal loans don’t cover the full cost of attendance,” or in this case, when the federal rate is significantly higher than market rates for qualified borrowers.
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Earnest parent PLUS refinancing eligibility requirements
To qualify for refinancing with Earnest, borrowers must meet specific financial and legal criteria. Earnest is known for its “merit-based” underwriting, which looks beyond just a credit score to consider your savings patterns, education, and career trajectory.
According to Earnest’s eligibility criteria as of October 2024, you generally need to meet the following requirements:
- Credit Score: While there is no hard minimum published, a score of 650 or higher is typically recommended for approval.
- Income and Employment: You must be employed or have a written job offer starting within six months. You need a consistent income that supports your debts and living expenses.
- Residency: You must be a U.S. citizen or Permanent Resident (10-year card).
- Loan Status: You can refinance Parent PLUS loans for a completed degree or for a student currently enrolled (as long as the loan has been fully disbursed).
- Loan Amount: According to Earnest, the minimum loan amount for refinancing is $5,000 ($10,000 in California). The maximum is generally up to $500,000.
- State Availability: Earnest lends in most states, but specific restrictions may apply depending on where you live (e.g., Nevada restrictions).
- Financial History: You should have no history of bankruptcy or accounts in collections recently.
Earnest parent PLUS refinancing rates and terms
One of the primary reasons families refinance is to secure a better interest rate. Earnest offers both fixed and variable interest rates, allowing borrowers to choose between stability and potential initial savings.
As of October 2024, Earnest offers competitive rates that often undercut the federal Parent PLUS rate for qualified borrowers. It is important to compare these against the 9.08% federal rate mentioned earlier to see if the savings justify the switch.
| Loan Type | Rate Type | Rate Range | Term Options | Fees |
|---|---|---|---|---|
| Federal Parent PLUS | Fixed | 9.08% | 10-25 Years | 4.228% Origination Fee |
| Earnest Refinance | Fixed | 4.99% – 9.24% | 5-20 Years | $0 |
| Earnest Refinance | Variable | 5.89% – 9.49% | 5-20 Years | $0 |
Source: StudentAid.gov (federal rates for 2024-2025, disbursements between July 1, 2024 and June 30, 2025; origination fees for disbursements between October 1, 2024 and September 30, 2025) and Earnest (private rates as of October 2024). Rates include 0.25% Auto Pay discount.
Returning to our example of a $30,000 loan balance: If you are currently paying 9.08% interest, your monthly payment on a standard 10-year plan is approximately $380. If you refinance with Earnest to a 6.50% fixed rate for the same 10-year term, your new payment would be around $340. This saves you roughly $40 per month and $4,800 in interest over the decade. Note that variable rates may start lower but carry the risk of increasing, which could eliminate these savings over time.
Unique features of Earnest parent PLUS refinancing
Earnest competes aggressively on user experience and flexibility. Their platform is designed to give borrowers more control over how they repay their debt compared to traditional lenders.
Most lenders use a tier-based system where your rate falls into a broad bucket based on your credit score range. Earnest uses “Precision Pricing,” which analyzes your specific financial data to offer a personalized rate. This often results in a lower rate for borrowers with strong financial habits, even if their credit history is relatively short.
According to Jason Delisle, higher education finance researcher at the American Enterprise Institute, “The private market can and does innovate—offering options federal loans don’t, such as variable rates or targeted underwriting.” Earnest’s model is a prime example of this innovation.
Earnest allows you to pick your exact monthly payment amount (provided it covers interest and principal requirements). Once you set your budget, the system adjusts your loan term to match. For example, you could end up with a 7-year, 4-month term rather than being forced into a standard 5 or 10-year bucket.
Unexpected expenses happen. Earnest offers a Skip-a-Payment feature that allows you to skip one payment every 12 months. To qualify, you must make at least six consecutive on-time payments (principal and interest) initially, and your loan must be in good standing. Keep in mind that interest continues to accrue during the skipped month, which will slightly increase your total loan cost.
For more on how refinancing features work generally, visit our Student Loan Refinancing guide.
How to apply for Earnest parent PLUS refinancing
The application process for Earnest is entirely digital and streamlined. Because they use a data-driven underwriting model, you can expect a relatively fast turnaround.
- Check Your Rate (2 Minutes): Visit the Earnest website and fill out a brief form to check your rate. This initiates a soft credit pull, which means it will not affect your credit score.
- Review Offers: If eligible, you will see a variety of rate and term options. You can toggle between fixed and variable rates and adjust the term length to see how it affects your monthly payment.
- Select Your Loan: Choose the rate and term that best fits your budget and savings goals.
- Upload Documentation: You will need to provide proof of income (pay stubs or tax returns), a government-issued ID, and statements for the loans you want to refinance.
- Hard Credit Check: Once you submit the full application, Earnest will perform a hard credit inquiry. This may temporarily lower your credit score by a few points.
- Final Approval and Signing: Approval typically takes 2–5 business days. Once approved, you will sign the promissory note electronically.
- Loan Payoff: Earnest will send funds directly to your federal loan servicer to pay off your old Parent PLUS loan. This process usually takes 2–4 weeks. Continue making payments to your federal servicer until you confirm the balance is zero.
- Government-issued photo ID (Driver’s License or Passport)
- Social Security Number
- Proof of income (recent pay stubs, offer letter, or tax returns)
- Payoff verification statements for your current loans
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Repayment options and customer support
Once your loan is refinanced, your relationship shifts from the federal government to Earnest. Understanding the repayment experience is crucial for long-term satisfaction.
Earnest allows borrowers to switch between fixed and variable rates once every six months (subject to eligibility). Additionally, you can enroll in biweekly autopayments. By paying half your monthly payment every two weeks, you end up making one full extra payment per year, which reduces your principal faster and saves on interest.
Earnest is known for its “Client Happiness” team, which is available via phone, email, and chat. Borrowers have access to a clean, modern dashboard and a mobile app to manage payments, view balances, and adjust settings. While Earnest offers some hardship forbearance options (typically in 3-month increments up to 12 months total), these are discretionary and less generous than federal options. You can learn more about managing payments in our repayment guide.
Earnest vs. other parent PLUS refinancing lenders
Earnest is a top-tier lender, but it isn’t the only option. It helps to compare their offer against other major players in the space to ensure you are getting the best deal.
| Lender | Fixed Rate Range | Variable Rate Range | Min/Max Loan | Key Differentiator |
|---|---|---|---|---|
| Earnest | 4.99% – 9.24% | 5.89% – 9.49% | $5k – $500k | Precision Pricing & Payment Flexibility |
| SoFi | 5.24% – 9.99% | 6.24% – 9.99% | $5k – Full Cost | Unemployment Protection & Member Perks |
| ELFI | 5.29% – 8.99% | 5.28% – 8.99% | $10k – Full Cost | Dedicated Personal Loan Advisor |
| Laurel Road | 5.14% – 9.75% | 5.49% – 9.60% | $5k – Full Cost | Special rates for healthcare professionals |
| Citizens Bank | 6.49% – 10.99% | 6.99% – 11.99% | $10k – $500k | Discounts for existing bank customers |
Source: Lender websites (rates and terms as of October 2024). Rates include applicable autopay discounts.
Where Earnest Wins: If you want the ability to customize your payment to the penny or skip a payment occasionally, Earnest is unmatched. Their technology-first approach usually results in a smoother user experience.
Where Competitors May Win: If you are worried about job security, SoFi’s unemployment protection allows you to pause payments while looking for work. If you prefer having a single point of contact, ELFI assigns a personal loan advisor to every applicant.
Who should choose Earnest for parent PLUS refinancing
Based on their criteria and features, Earnest is a specific fit for certain types of borrowers. Here is a quick summary to help you decide.
Earnest is BEST for:
- Parents with good-to-excellent credit who want to beat the current 9.08% federal rate.
- Borrowers who value the ability to customize their monthly payment amount.
- Families who want a fast, digital-first experience without paperwork headaches.
- Borrowers who are confident they will not need Public Service Loan Forgiveness (PSLF).
Earnest may NOT be best for:
- Borrowers with credit scores below 650 or unstable income.
- Parents who anticipate needing extensive forbearance or income-driven repayment options.
- Those who prefer in-person banking relationships (Earnest is 100% online).
- Borrowers who want to transfer the loan legally to the student (Earnest does not offer this specific product).
Frequently asked questions about Earnest parent PLUS refinancing
Yes, Earnest specifically offers refinancing for Parent PLUS loans. You can refinance these federal loans into a private loan with Earnest to potentially lower your interest rate or change your repayment term.
Earnest uses holistic underwriting and does not publish a strict minimum credit score. However, a score of 650 or higher is typically recommended to qualify, along with a history of on-time payments and stable income.
No, Earnest does not offer a parent-to-student refinancing product. The parent who originally took out the PLUS loan must remain the primary borrower on the refinanced loan.
No. Checking your rate with Earnest involves a soft credit inquiry, which allows you to see your estimated rate and terms without any impact on your credit score. A hard inquiry is only performed if you proceed to submit a full application.
When you refinance a federal Parent PLUS loan with Earnest, it becomes a private loan. You permanently lose access to federal benefits such as Income-Contingent Repayment (ICR), Public Service Loan Forgiveness (PSLF), and federal deferment options. You can read more about these trade-offs in our Parent PLUS guide.
The process is generally quick. You can check your rate in minutes. Once you submit a full application, approval typically takes 2–5 business days. The entire process, from application to your old loan being paid off, generally takes 2–4 weeks.
Earnest stands out as one of the most flexible and borrower-friendly options for Parent PLUS refinancing. For parents with good credit who are currently paying high interest rates on federal PLUS loans, Earnest offers a clear path to substantial savings and better cash flow management.
- Cost Savings: Precision pricing can offer rates significantly lower than the federal PLUS rate for qualified borrowers.
- Flexibility: Unique features like customizable payment amounts and the Skip-a-Payment benefit provide safety valves that other private lenders lack.
- Transparency: With no origination fees or prepayment penalties, every dollar you pay goes toward reducing your debt.
- Trade-off: The primary downside is the loss of federal protections like IDR and PSLF, which is standard for all private refinancing.
If you are confident in your financial stability and want to minimize the cost of your debt, Earnest is an excellent choice. We recommend comparing their offer against 2–3 other lenders to ensure you secure the absolute best rate for your family.
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References and resources
- Earnest Parent PLUS Refinancing Information
- StudentAid.gov – Federal Interest Rates and Fees
- College Finance: Parent PLUS Loans Guide
- College Finance: Student Loan Refinancing Guide
- College Finance: Private Student Loans Guide
- College Finance: Public Service Loan Forgiveness (PSLF) Guide
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