Loans -- parents plus vs unsubsized loan offered by college

Realize this may be a dumb question, but I am assuming that the 5500 unsubsidized loan that is offered when you apply for financial aid is better (interest rate wise etc) than a parents plus loan? And how does that compare to the financing options that some schools offer that allow you to lock in the rate at the begging by borrowing from the school?

Great question! The student unsubsidized loan is MUCH better than the Parent PLUS loans. The interest rate & origination fee are lower with the unsub. Read about interest rates & origination fees here (parent PLUS terms match grad PLUS terms, for easy comparison): Federal Student Aid. The interest rate is locked in on all federal loans, and the loans are borrowed through the school.

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