<p>Please see the points raised in this thread: <a href=“http://talk.collegeconfidential.com/financial-aid-scholarships/743865-student-vs-parent-loans.html[/url]”>http://talk.collegeconfidential.com/financial-aid-scholarships/743865-student-vs-parent-loans.html</a></p>
<p>Currently, if parents w/ good credit scores cosign a private student loan through Discover, the interest rate is only 4.25%, with no 3% origination fee, no guarantor fee, no fees of any sort. Granted, that rate is likely to increase some over the next few years, but it would have to go up a heck of a lot for the private loan to be as expensive as a PLUS loan, with its 8.5% interest and the 3% origination fee. </p>
<p>Yes, private loans CAN be expensive - but for those w/ good credit ratings, this is not currently the case. Once the student has obtained his/her allotment of Stafford and Perkins loans, the PLUS terms look pretty crappy. </p>
<p>Anyone have experience w/ this?</p>