Federal Parent PLUS loans vs. Private PLUS loans

Why would you choose one over the other? Are rates typically more favorable if you go private?

My opinion…it’s way easier to qualify for a Parent Plus Loan than some private loans. Really…all you have to do is be able to breathe and you will qualify…assuming you have paid your bills on time.

You haven’t asked for an opinion…but we flatly refused to take either kind of loan.

I’ve never heard of “private plus loans.”

Private loans for undergrads are usually cosigned bank student loans.

You should compare the two. The rate on the federal Plus loan might be higher, but there are some benefits that won’ be available on the straight private loans. There is forgiveness of the debt on death of parent or student, there are some consolidation benefits, there is the ability to not make payments while student is in school (interest will accrue).

Private loans can be to the parent, to the student, there can be origination fees (there are with the Plus loans) or not, rates can be set or adjustable. You have to research. I do know parents who found better rates at private banks or credit unions.

If you have to co-sign loans to pay for tuition, you can’t afford it. If that’s what you’re planning to do, then I highly recommend you rethink your options.