Brazos Parent Loans Are a Lower Cost Alternative
A Brazos private parent loan is an affordable alternative to a Direct Parent PLUS loan, and is often a better option for parents!
- Brazos rates are better. Brazos offers parent loans at a fixed rate as low as 2.50% APR5 compared to a 8.82% fixed rate (both with a .25% auto-pay discount) offered by the Federal Direct PLUS Parent loan.
- Even at our highest fixed rate, the Brazos parent loan is a lower-cost alternative to the Direct Parent PLUS loan. In all cases, qualifying parents will pay a lower fixed interest rate with a Brazos parent loan than they can get with a Direct Parent PLUS loan.
- Click HERE to compare the cost of Parent PLUS Loan versus Brazos Parent Loan.
- Fees are an important consideration. The Direct Parent PLUS loan has an origination fee of 4.228%, which takes a bit out of the loan proceeds upfront.
- For a $10,000 loan, parents pay an origination fee of $422.80, which means the total amount available for tuition and other education expenses is only $9,577.20. By comparison, Brazos parent loans have zero origination fees, so parents have 100% of the amount borrowed available to pay for education.
- Plus, Brazos offers multiple loan terms so parents or others can fit loan repayment easily into their budget, putting parents’ minds at ease and allowing students the opportunity to focus on learning and preparing for their future.
Brazos Parent Loans vs. Direct Parent PLUS Loans
| Brazos Parent Loan | Parent PLUS Loan* | |
|---|---|---|
| Interest Rates | Fixed rates from % APR to 8.22% APR.5 Variable rates from 4.32% APR to 8.22% APR.5 | Fixed: 9.07% |
| Origination Fee | $0 | 4.228% of the amount borrowed |
| Borrower Limits | Borrow up to100% of school’s certified cost of attendance (less other financial aid) with no annual or lifetime limits | Borrowing capped at $20,000 per year and $65,000 lifetime per student for new borrowers |
| Repayment Terms | Flexible repayment terms ranging from 5 to 20 years | Standard Repayment Term of 10 years |
| Who Can Borrow | Parents, grandparents, spouses, family members or friends | Only biological or adoptive parents and eligible stepparents |
| Eligible Programs | Undergraduate, Graduate and Professional degrees | Limited to Undergraduate degrees |
*Information on Parent PLUS Loans is only applicable if ALL Parent PLUS Loans are first disbursed on or after July 1, 2026.
If you borrowed under the Parent PLUS Program prior to July 1, 2026, please visit One Big Beautiful Bill Act Updates | Federal Student Aid for more information.
Need Money for Your Child’s Education?
Apply for a Brazos Parent Loan and finance your child’s education with the lowest possible interest rate. Brazos Higher Education offers competitive fixed and variable rates with no application fees, origination fees or prepayment penalties.
