<p>MMMgirl: There is a huge huge difference in total costs of private loans vs. federally subsidized loans. That is why the first $25K or so is usually not too painful for a smart college student in a program where there are at least modest job opportunities. For many people, that level of debt means they have to delay buying their first new car for a few years. However, the next $25K or beyond in loans can be truly burdensome and life-constraining. It is because the subsidized Staffords and any Perkin loans that are offered not only have lower interest rates, but also involve the feds paying the interest while you are a full time undergrad or grad student. Other loans involve interest accrueing and multiplying while you are still in school. </p>
<p>Therefore, if you need to take out any Parent PLUS or private loans, do it as late in your college education as possible and pay them off as soon as possible. Also, before you sign, make sure there is not any penalty for early pre-payment.</p>