Like any major investment, most families pay for education with a mix of current income, savings and borrowing. Finding the right balance among these resources can save you money.
First, determine the difference between your costs and any financial aid you expect to receive. This is a good estimate of the amount your family is expected to pay. Apply it to the TMS payment plan. If the resulting monthly payment is greater than the amount you are able to afford, you can combine the advantages of both interest-free payments and the low-interest, longer-term payments of the Federal PLUS Loan.
You may also use BorrowSmart Affordability Planning & Counseling to help you determine the maximum interest-free monthly payment to save you money. Call 888-251-3533 for this free assistance.