<p>my parent's efc is less than 3000 but they can't pay it so i'm wondering if i should take out a private loan as a student (cheaper?) or should my parent's apply for the PLUS loans (we qualify)? also, if my paren'ts are able to get the money by borrowing from family-friends, should we do that instead (may take awhile) or just borrow loans in case i need it for other college uses such as textbooks etc. thanks so much!</p>
<p>Parent EFC is usually applied towards tuition and room and board. If you could manage to get the money from other sources besides loans go for it, otherwise there is almost no difference between a PLUS loan and a good private loan in my opinion.</p>
<p>Well unless you have amazing credit the PLUS loan will probably have a slightly lower interest rate. On the other hand, you can defer payment on a private loan until graduation but the PLUS loan will go into repayment immediately. Ask your parents and see if they're able to start paying off the loan immediately or if it is better to wait, in which case the private loan is the only option.</p>
<p>In some cases, a Parent PLUS Loan can also be placed into deferment status while the student is in school. If you are deciding between private and Parent Loans, go with te Parent PLUS Loan...it is a better deal, unless like nope said, you have amzing credit.</p>