<p>i was wondering if my parents should take out a PLUS loan (8.5%) or should I take out a private loan from citibank (citiassist for undergrads-as low as 7.25%) thanks!</p>
<p>You should find out first what interest rate they will get on the private loan. "As low as 7.25%" doesn't mean that's the rate they will get and in fact it probably isn't.</p>
<p>Another thing to keep in mind - the Citibank loan may not be fixed and can fluctuate. The PLUS loan is capped at 9% by the government.</p>
<p>ok thanks! also, i was wondering if any of you have heard of CampusDoor and have borrowed money from them?</p>
<p>Brand_182's info is incorrect -- PLUS loans now have fixed interest rates, of 8.5%. Many lenders offer rate reductions, however, of up to 2% interest when parents sign up for automatic withdrawal from their accounts. (The 9% cap applies to older loans, but both PLUS & Stafford are now fixed rate loans).</p>