Here is her advice in a USA Weekend article titled "Suze's 6 tips:"
With the credit crisis, banks are less likely to give private student loans, so students are getting their parents to cosign. But I tell parents to put away their pens. Interest on a private student loan is averaging 12% now, according to Forbes [SLA Note: SLA estimates average rates at 11%.]. But a "PLUS loan," which parents can take out in their own names, is fixed at only 8.5% interest [SLA Note: Rate is 7.9% at schools in the Direct Lending program].
- SLA tip: Remember not to let the starting interest rate on a variable-rate private loan entice you since rates are at historical lows. Based on an analysis of interest rates over the past 20 years, I don't think it is unreasonable to assume that the average rate on your private loan will be 4% higher than your starting rate.
She also recommends parent's reduce their equity allocation in their investment portfolio as their child gets within 5 years of enrolling in college: