<p>Is there a concrete answer to this? My parents have a good credit score so I do think we could get a PLUS loan. My mom wants to shop around for rates....is she wasting her time or is that a good idea?</p>
<p>Also, I want it set up where I can pay what I can per month. I want to do the TMS program as well, which would be interest-free.</p>
<p>There is not a definitive answer, both have pros and cons. </p>
<p>PLUS loan is probably easier to get. If the student dies or becomes permanently incapacitated the PLUS, like federal student loans, may be forgiven.</p>
<p>Private loan may have a lower rate if the parent has very good credit.</p>
<p>PLUS loan is a parent loan. The parents are responsible for repaying it , not the student, and any tax benefits on the interest will be the parents.</p>
<p>Private loan can be taken out by the parent in which case it is the parent’s responsibility and affects the parents credit rating. Or it can be taken out by the student with the parent cosigning, in which case it is the responsibility of both the student and the parent (if student is late or does not pay parent is on the hook) and affects both credit ratings. I personally am very averse to the idea of cosigning a loan as the cosigner has all the responsibility for the debt and risks associated with default with little control over it.</p>
<p>From Clark Howard:</p>
<p>Subsidized Stafford loans are the single best source of money you can borrow.
The interest is picked up by taxpayers while you’re in school. </p>
<p>Once you exhaust your subsidized Stafford stockpile, you want to move on to unsubsidized Stafford loans. </p>
<p>As a third option, parents can take out PLUS loans.</p>
<p>One category of loans to avoid is private student loans.</p>
<p>Finally, remember the consumer champ’s rule of thumb when it comes to determining what level of borrowing you can comfortably handle: Do not take on loans that exceed the likely first-year earnings in your field.</p>
<p>My mom trusts him haha</p>