<p>Hello! I'm new to this forum and I'm our family's first college-bound child so I had a few questions in regard to financial aid. Right now it's looking like I'm going to have to take out a lot on loans. I was wondering if I should go with the Federal PLUS loans or private loans. Are the terms different? I noticed the interest rates were definitely different and that private loans depend more on credit. Can anybody speak from experience? If private loans, which lender is the best? Thank you!
-Paul</p>
<p>You need to back up and reconsider your options. Taking out “a lot” of loans is not a good idea at all. You should not borrow anything more than the amount of federal Stafford and Perkins loans offered to you. PLUS loans can be an enormous debt burden on you and your family for decades to come. Have your parents even agreed to borrow that much?</p>
<p>How much are you looking at, what school is it and what are your other choices?</p>
<p>
You do realize that you will not be the one taking out the PLUS loans, right? These are parent loans that only the parent can take out. All the risks and liabilities will be your parents. Don’t let them take out more than they can reasonably afford.</p>
<p>Private loans will also probably be your parents. A student can not usually get private loans in their own name unless they have a cosigner, which would usually be a parent. Personally I think cosigning a loan is worse than having one in my own name and would never do it. All the risks and responsibilities of having a loan without any control over it.</p>