Why do colleges push the Parent PLUS loan above others

ARTCC
Tue, 07 Apr 2015 22:20:58 +0000

Thanks for the suggestion. We’ll also apply to Sallie Mae to see if they beat the Wells Fargo rates. Sally Mae releases cosigners after only 12 on-time principal and interest payments, assuming my D has good credit if the loan aren’t paid off by that time already. Wells Fargo cosigner release takes 24 months.

I spoke with customer service representatives at both lenders–Wells Fargo seemed to be more professional and knowledgeable, but it’s not a large enough sample to draw a conclusion one way or the other. The Sallie Mae website seems more user-friendly for accessing the application and account. Since my D will remain my dependent, it’s unfortunate that the student loan interest won’ be tax deductible for me as the cosigner, but at our income level, it’s not that big a deal.

Hopefully we can help our D pay off all or most of the loans we intend to take with our future investment and other income, although the earlier cosigner release would seem to give the edge to Sallie Mae, especially if their interest rates are the same or lower.

The Sallie Mae Smart Rewards for Upromise while still in school for the $25 Fixed or Interest repayment option sounds interesting, but it might not be such a big deal.