Private Loans vs Federal PLUS Loan

Paying for College
1

<p>I'm in a slight dilemma.</p>

<p>From what I understand, private loans often cost more, while the Federal PLUS Loan is a fixed 7.9% interest rate. I'm looking over Salliemae's website for a student loan, and apparently, the interest rate can differ from 2.25% to around 10%. </p>

<p>Now, my question is this. When borrowing from a private company, should I have a cosigner, such as a parent, or no? Would it increase the amount of interest I have to pay, considering that my parent actually has money, or would it just be wise to borrow individually and have my parents help me pay from there. Also, do I have to accept the loan after it's approved? What if I don't like the interest rate given?</p>

<p>Is the federal PLUS loan a better alternative?</p>

<p>Edit: Is a unsubsidized loan better than a private loan?</p>

2

<p>PLUS loans are, in general, the best to go with if your parents have good credit. And yes, definitely get a co-signer. Loans don’t get increased in interest based on money, just based on less credit-reliability (which having money can add, I believe).</p>

3

<p>If you are a typical college student with minimum-wage income and zero assets, you will not even be offered any private student loans without a cosigner.</p>

<p>Yes, unsubsidized Stafford Loans are far better than private loans.</p>

4

<p>Sally Mae got some pretty tough reviews online</p>