<p>2 kids in college, a freshman & Jr. They both have sub. & unsub. Stafford Loans.</p>
<p>Our EFC is about $9,500 for each. I know the CAL is a student loan which we have to co-sign, but we would pay on it. I believe both loans start repayment 6 months after graduation. We’d like to borrow only for 2 years and then have enough saved up to pay the EFC cash.</p>
<p>Which one would you reccomend? What are the pros & cons of each? thanks</p>
<p>bumping this up in hopes of a reply. We need to figure this out soon! 
Thanks!</p>
<p>[HHLoans.com[/url</a>]</p>
<p>Looks like the fixed interest rate is lower on the CAL loan (they have last years rate at 6%) , but they could deduct up to 5% if both the borrower AND cosigner don’t have good credit. Not sure how they gauge the student’s credit.</p>
<p>[url=<a href=“Student Loans for College & Graduate School | Discover”>Student Loans for College & Graduate School | Discover]Discover</a> Student Loans - For Parents](<a href=“HHLoans”>http://www.hhloans.com/borrowers/calfactsheet.cfm)
The PLUS loan interest is higher, but the student’s credit has no bearing on ‘deduction’. Plus loans can have a longer repayment period regardless of the amount borrowed.</p>
<p>you have to decide what is best for YOU</p>
<p>Sorry for the cross-post!</p>
<p>Are you referring to the Hinson-Hazlewood College Access Loan offered through the Texas Higher Education Coordinating Board? If so, the CAL Loan is a much better deal than the Parent PLUS loan. </p>
<p>The interest on the Parent PLUS is either 8.5% if your school participates in FFELP or 7.9% if Direct. There is also a 4% origination fee. If you decide to defer repayment, the interest on the Parent PLUS is capitalized.</p>
<p>The CAL loan is either 6% fixed or 3.91 variable (currently 3.91 and the rate will never be more than 4% above the rate when you take the loan). The origination fee is 3% if both the student and the co-signer have good credit and 5% if only one has good credit. The interest is never capitalized.</p>
<p>However, if you are not approved for the Parent PLUS loan, your student will be eligible for additional unsubsidized Stafford ($4000 fresh/soph and $5000 Jr/Sr). If you are not approved for the CAL, no addl Stafford will be offered unless you also are declined for the Parent PLUS.</p>