<p>I've been doing some quick research on financial aid and wondered what others are going to be doing soon. I've discounted the HELOC option. I just don't have enough equity in this house and have read that you shouldn't go that route if you don't have to. So, it looks as though an Alternative Student Loan may be the way to go. I'm wondering what others have arrived at through their research? Would you mind throwing out ideas here publicly for others to follow? Of course, everyone's situation will be different, but can we suppose the following is true for this financial scenario:</p>
<p>One child going off to college
Single Income of $100,00
Three Mortgages on a total of two homes
Discounting any use of IRAs/401ks or other retirement savings</p>
<p>Would like to consider the best loan option available:</p>
<p>No origination fees, deferment of payment until child graduates, lowest interest available, etc.</p>
<p>Any thoughts?</p>
<p>Most lenders are now offering no fee Stafford loans and a rebate on the origination fee for the Plus (Parent) loans. On top of that you can also get some other benefits when your loans go into repayment like interest rate reduction or a rebate to your balance. SimpleTuitiion has a web site that compares different programs - now it is not totally unbiased but it can help you understand what your choices are and give you some idea of the different lender names.</p>
<p>As for deferments, different repayment options, items like that - by staying in the federal loan program (stafford or plus loans) you are entitled to certain benefits that include inschool deferments, unemployment deferments, forbearance, etc-- </p>
<p>Repayment options like graduated repayments, income sensitive repayment, extended payments = things like that are also a part of what you are entitled to when using the federal education loan programs.</p>
<p>FinancialAidLady, thank you for your input. For being the only input. I'll have to look into this. It seems as though that loans signed for by students carry a better deal. Do you know of any circumstance where a 17 year old can be primary and the parents, secondary, or co-signer?</p>
<p>What is your day job? Are you a secret FinancialAidLady? It looks like you have intimate knowledge of this secret world that parents and students encounter if they take this route. Cool.</p>
<p>:-)</p>
<p>I have been in the financial aid industry for many, many years AND I have two kids in college so I do know the industry relatively well.</p>
<p>I sound like a broken record but IF you have used up all the federal loan options available to you then there are private loan programs you can use - programs that will have the student as the primary with a credit worthy cosigner. </p>
<p>I do not want to promote one program over another but Sallie Mae Signature loan is one of these and only one option you can look into that will allow you do that AND it will allow you to deferment payments while in school (interest still accrues !) but you can put your payments off if you need to.</p>
<p>If I can help you or anyone else out check out my profile to contact me directly -- this is a confusing industry and we all need all the help we can get in figuring out our way through it.</p>
<p>My D has just graduated
First year we didn't qualify for PLus loan but we did have home equity
2nd year took out Plus-
third & 4th year took out plus as well.
We began automatic deduction for a few interest points off as soon as 2nd payment to college was dispersed
I would always start paying it back right away- why wait till they graduate to add all that interest?</p>
<p>Agree - you definitely did the smart thing - if you can pay on the interest - heck even if you can throw a few dollars on the principal along the way - it all helps in the long run. HOWEVER for those who don't have the ability or extra money to do that you also have the option of letting it ride and including it in the repayment schedule when you do start making payments.</p>
<p>Its all about choices and options- knowing what your options are - knowing where to find information and then you are in a good place to make decisions that will work best for you in the long run.</p>
<p>So, for PLUS Loans, everyone has a choice to make minimum payments after they disburse?</p>