Loan - level credit enhancement can facilitate low down payment lending to creditworthy borrowers,
especially when placed
on mortgage
loans before they are guaranteed by the
federal government.
This is
especially important if your child is dependent
on private student
loans, which are much more expensive than
federal student
loans, and which will usually require a cosigner.
Here's what Kiplinger's personal finance magazine says college students don't need: New textbooks, a high - end computer, a printer, a pricey smartphone plan, cable TV (watch streaming videos
on a computer), a car (
especially for freshmen), overdraft protection
on bank accounts, campus health insurance (assuming coverage under the family's health plan) and private
loans, which carry higher interest rates and less flexible repayment plans than
federal loans.