A Private Parent Loan is a loan offered by a private lender such as a bank, credit union, state agency, or a school for parents of dependent undergraduates who can borrow up to the cost of attendance minus all other financial aid. The minimum borrowing amount is $1,000. Interest rate will be based on credit strength estimate provided by user:: Excellent = 5.59%; Strong = 6.69%, and Good = 10.19%. Families with Not So Good credit will most likely not qualify. Interest accrues from disbursement. Interest accrues from disbursement. Most likely, interest only payments will be required while the student is enrolled and repayment will begin immediately after the student ceases to be enrolled at least half-time. Typically, these loans offer limited deferment and forbearance options and no loan forgiveness, loan discharge or cancellation options.