Why do colleges push the Parent PLUS loan above others

ARTCC
Tue, 07 Apr 2015 05:04:33 +0000

We have a $46K EFC. Our D is attending a private university where her financial aid award (grant and federal direct loan) is $18.4K.

I have an outstanding FICO score so I applied for a Wells Fargo Collegiate Loan as a cosigner for our daughter. Their offer to us was 7.99 percent fixed, variable 4.49 percent (with my bank’s discount applied), with no origination fees and no prepayment penalty for either option. We’re thinking of going with the variable rate and refinancing later if interest rates jump significantly. I would only go with the Parent PLUS loan as a last resort.