Should you get a private student loan?
It's usually a good idea to max out your federal student aid options before you turn to private loans. Be sure to fill out the Free Application for Federal Student Aid, or FAFSA, to determine whether you're eligible for federal student loans, as well as some grants, scholarships, and federal work-study programs.
You'll also need to fill out the FAFSA if you're a student and your parent is willing to consider taking out a Parent PLUS, which is a federal loan that parents can take out to help pay for a dependent student's education. Parent PLUS loans may be a better option for a parent who's considering co-signing a private loan. As a co-signer, they'd be legally responsible for the private loan's repayment. While the Parent PLUS loan is in the parent's name only, at least they're afforded the protections of federal loans.
If you've maxed out your federal loans or you're ineligible for federal aid for some other reason, you may need to take out private loans to complete your degree. But be cautious about how much you borrow. The rule of thumb is that you don't want to graduate with student loan debt that exceeds your expected first-year salary. If you're looking at borrowing significantly more than that amount, consider whether it's possible to work part-time while attending school or you could switch to a cheaper institution.
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