Private Student Loan Can Outshine Federal Parent Loan

For many families, private education loans are a better choice than the PLUS program.

Private Student Loan Can Outshine Federal Parent Loan, Says Campus Door

Carlisle, PA, 9 July 2002 -- For the families of most undergraduate students, costs of the 2002-2003 school year will outstrip aid from grants, scholarships, and Federal Stafford loans.

That has parents looking at education loans to help their student cover costs-usually through a private education loan or the federal Parent Loan for Undergraduate Students (PLUS).

"For many, this is the best of times to fill the funding gap with a private education loan," says Campus Door President Damien Q. Elias. "CampusDoor.com has its lowest-ever interest rates, fees low as zero percent, and benefits that counter the drawbacks of the PLUS."

To compare the PLUS and the private loan, you need to know what features they share:
· For both, you can borrow up to the undergraduate's cost of attendance, minus any aid awarded.
· Because neither is based on economic need, most families are eligible for either loan type.

Who pays

The Campus Door loan gives families options. The student or the parent can borrow, or can share responsibility by having the parent cosign the students loan. For cosigned loans, the cosigner can be released from loan obligation after 48 on-time payments.

The PLUS loan drawbacks: The PLUS loan puts the parent on the hook for loan payback. The parent is required to be the borrower, and takes 100 percent legal responsibility for repaying the loan. Even a willing student cannot be the borrower on a PLUS 1oan.

Repayment timing

The PLUS program demands that parents begin repayment within sixty days, and allows only ten years for repayment.

"This places a heavy burden on parents who borrow for several years and for more than one child." said Campus Door President Damien Q. Elias. "No deferral, coupled with the tight repayment period hits parents hardest in their 40s and early 50s-when retirement contributions could still grow through meaningful compounding.

"Campus Door defers payments until 12 months after the student graduates or ceases to be enrolled at least half time. And we allow up to a twenty-year repayment period, which can lower monthly payments by up to one-third."

Funding part-time enrollment

While the PLUS won't cover someone enrolled half time or less, Campus Door will. It even offers a career loan geared to the fast-growing population of students enrolled in part-time programs.

About Campus Door

Campus Door is a leading provider of Internet resources for planning and financing education. Through their online loan process, qualified applicants can obtain immediate credit approval, complete and submit an application for up to 100 percent of their cost of attendance, and check the real-time status of their accounts. The program consists of nonfederal loans offered exclusively by Campus Door.

For more information about Campus Door, visit www.campusdoor.com.