Time to take the plunge (private loans)

I'm going to have to take out a private loan soon and id greatly appreciate some help deciding when I should do it and also where should I borrow from. Just to give some quick perspective i'm a student at the University of Cincinnati going for a 5 year engineering bachelors. I've exhausted all my federal loans (for the quarter) and about half of the money from my Ohio tuition trust fund (basically a bond my parents set aside for me along time ago). Ive already filled out FAFSA so i know im not eligible for anything as far as grants or any special federal loans go (besides Stafford). The next time bills come around I will either have to spend close to the remainder of my Ohio tuition trust fund or start taking out private loans.

One factor that adds to the complication is I will be cooping (payed internships) roughly every other quarter until my senior year. I will probably make $5000-$6500 (before taxes and discluding rent/living expenses) each coop quarter. I would like to borrow as little private money as possible; so I am thinking I could either continue to use my Ohio tuition trust combined with the Stafford loan and whatever I make on coop (until im forced to take a private loan) or take out a private loan now and save my Ohio tuition trust to pay off my junior/senior year. My reasoning is I predict loan interest rates likely be going up over the next few years and also if my tuition increases my Ohio tuition trust fund will grow (its value is based on the tuition). Lastly my parents have basically a perfect credit score and as far as I know that is the main barrier between the best and the worst private loans. Should I take out a private loan now while the interest rates are somewhat low (I could be way off here) or should I wait till i absolutely need to. If I should take a private loan where should I borrow from assuming a perfect credit score from my cosigner.

Ive tried to use the loan comparison chart at the middle of this page http://www.finaid.org/loans/privatestudentloans.phtml to decide where to borrow from, but ultimately I don't understand all the details (LIBOR, PRIME, loan calculator tool). Anyhow I hope this wasn't too long winded again any help would be greatly appreciated.

If you are eligible for Stafford, go for Stafford -- and NOT for a private loan! The differences are that Stafford doesn't accrue interest while you're still in school, and you have the more generous terms associated with the Feds (and NOT associated with private loans!).

Don't take a private loan unless you absolutely have to. For far too many students, private loans are the death knell of peace, tranquility, and financial stability. Avoid them as much as you can. If you DO need them, borrow as little as possible.

And if I could give your co-signer advice, I'd say, "Don't cosign!".

What I really should have asked from the start -- and which I'll ask now, hoping you respond -- is what you're spending all that money on? Why isn't Stafford enough to meet your needs? Is there anywhere you can cut back, rather than take a private loan?

Although I completely agree with your posts and when I think of private loans the first thing that comes to mind is suffering it doesnt change the fact that im definitely going to have to take one out sooner or later. Fortunately my cosigner has a pretty solid income so I wouldnt have to worry about them getting in trouble if I end up with financial problems. Although I really dont intend to let them down that way.

What I actually meant to say in the first post is that even with all the federal loans (including stafford) im still coming up short. Basically what im asking is, what are some of the best possible private loans?

What I really should have asked from the start -- and which I'll ask now, hoping you respond -- is what you're spending all that money on? Why isn't Stafford enough to meet your needs? Is there anywhere you can cut back, rather than take a private loan?

Believe me im not spending any more than I have to. The only way I could have a small chance of not taking out private loans is if I went to a local college (and lived at home). Even if that were the case I might still have been forced to take out a private loan. However since I don't goto a local college and I do have to pay room and board, im going to have to borrow some private money.

Anyhow banks are clever enough to make student loans virtually impossible to compare with each other by adding in thousands of different variables. So am I wasting my time? Should I just take out any generic old private student loan? Or are there any lenders that are significantly better than others? btw i should mention my parents wont take out any more money in parent plus loans because they don't like the fact that they had to start making payments on it so soon.