<p>We just received mail from this organization. Anyone know what is between the lines that we should be aware of?</p>
<p>Don’t have any advice for you, but I’m also looking at the Smart Option loan. Seems to have some advantages vs. the Parent PLUS loan. I look forward to learning something from the more knowledgeable replies. Good luck!</p>
<p>I also got this</p>
<p>For starters, do you need a private loan to afford your college? If your parents are going to take Plus loans, you can start by comparing the interest rates.</p>
<p><a href=“Undergraduate Student Loans - Smart Option Student Loan | Sallie Mae”>404;
<p>comparison to Plus
<a href=“Parent Plus loan & Smart Option Student Loan Comparison Chart | Sallie Mae”>404;
<p>thank you for that comparison page. we think we will be OK the 1st yr with only the 2 small Stafford type loans. Next yr though we’ll be doing those again and taking out some private loans hopefully through MEFA</p>
<p>The thing about Sallie Mae and the private student loan options is that they advertise a low interest rate but have a range of rates based on credit worthiness. You don’t know what your rate will be until after you apply. I’ve heard of people with great credit that don’t get offered the low advertised rate.</p>
<p>One thing I just learned after talking to Sallie Mae is that the loan(s) aren’t consolidated. If you take out a loan each year, that’s four separate payments to be made. That seems dumb, but maybe it’s normal, and if there are different interest rates and such, maybe it’s not unexpected. I’m very interested in how their interest rate determination/credit rating turns out, as daughter basically has no credit history at all, but my credit score (as co-signer) is excellent.</p>
<p>New Jersey residents attending anywhere or out-of-state residents attending a NJ College should check out New Jersey’s NJCLASS for college loans that can cover the gap funding needed, go to NJCLASS.org. Great alternative to the Federal Plus loan. </p>
<p>You can apply for one. You know what the PLUS terms are. You should also check out other alternatives. THen find out what your interest rate and terms for these are. </p>
<p>Bear in mind that these loans go on BOTH yours and your student’s credit reports. I don’t know current terms, but with some of these loans, if you or you student dies, the other still has to repay. Also how flexible is repayment? PLUS is pretty flexible and they will work with you if you get behind. Not so much some of these other loans. They’ll go after your paycheck first and your student’s.</p>
<p>Also, in addition to the built in life insurance that PLUS has (if student or parent dies, loan is gone), PLUS isn’t on the student’s credit history. A lot of major companies do a credit report check when hiring and a young person with huge loans on the account can be at a disdvantage for certain jobs not to mention getting an apartment, getting decent loan rates for cars or anything or even being eligible for certain sensitive jobs like in banking, finance, government where people who owe a lot of money are considered at risk. </p>