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First child going to college, instate, no need based aid, 35k full cost (w/room & fees). We are self employed and our income varies throughout the year. We sent both of our kids to private school from k-12 which didn't leave room for college savings, so now we are looking into college loans, and have a few questions on how it works.
I've gone online and have read the differences between the Parent Plus loans vs private loans. But I am not exactly clear how they work. Do we apply for a new loan each year or do we apply for a loan amount that will cover the estimated full four year tuition? (I assume a new loan each year but do they then combine your balances or do you eventually have four separate loans/payments to make?)
I was reading through the thread warning parents abt Plus loans, but the Plus loans seem like less hassle, more straightforward (goes direct to the school?), and has the added death forgiveness protection (which hopefully will not be needed but nice to have!) We plan to continue making the same monthly private school tuition payment as we have all of these years, which will leave abt 60k remaining upon graduation. But we will probably pick the plan that defers payments until graduation, as an added safety measure so that my child's education is disrupted if we should have a few bad months.
I understand parent loans are not recommended but considering we've managed private school all these years, I think we can handle it. We just need some good advise on where to start and how the process works.