Thanks, @cptofthehouse . I won’t borrow $50k from my 401k, more like $20k - $30k. I can make those payments without too much trouble.
The Parent Plus Loan gives me pause bc of the large fee (4.75% or something) off the top. I was able to get more favorable terms with my bank (lower fixed rate, no origination fees, assurances that the debt is dismissed in the case of death).
I do hate the idea of co-signing private loans but my main goal is to have a portion of the college debt in my kids’ names (have myself removed from the loans once they make enough on time payments). If we are able to help pay them off later, we will do so.
Without knowing which of my three kids will owe how much (or if they won’t owe anything), I’m not ready to make a determination on how much of their respective debt will be in their names versus only in mine.
I do realize that co-signing means I’m ultimately responsible.
So I guess this comes down to deciding whether to offset some of the private loan or Plus loan amounts with a 401k loan.
With all of this said, I may look more at the PLUS loan too. I know that the 401k loan won’t affect or rely on my credit score, so maybe I should hold off on that 401k route until it is necessary. (Right now my credit score is high but I believe taking on debt will lower it).