NEWTON, Mass., Aug. 14 /PRNewswire/ -- In the mad dash to secure student loans, many families make uninformed decisions that can have a negative financial impact. With many federal and private student loan products, each with different interest rates, fees, and terms -- and with lenders offering aggressive incentives -- it's not surprising that families choose financing that may have negative consequences down the road. "It is easy to get confused with the complexity of the student loan landscape: federal loans, private loans; parent loans, student loans; subsidized loans, unsubsidized loans; borrower benefits -- the chances for confusion abound," said Kevin Walker, CEO of SimpleTuition. "Parents and students should forget the time crunch for a moment, take a deep breath, and do their homework before making decisions that could cost them thousands of dollars over time." SimpleTuition, Inc. (http://www.simpletuition.com), a company dedicated to helping students and parents make sense of education financing choices, has a few tips to help parents and students avoid making poor decisions about how to pay for college. -- Review the financial aid award letter. Take advantage of scholarships, work study, government loans, grants, and school loans as outlined in the financial aid award. -- Identify the amount owed. Subtract the total cost of college by the amount received through financial aid. Try to pay as much of this as possible from current income and/or savings. -- Max out on government loan programs before turning to private loans. Federal loans such as "Stafford," "Ford," or "Perkins" are lower cost loans and have more flexible repayment structures. -- Weigh Borrower Benefits carefully. Evaluate each benefit for eligibility requirements and keep in mind that Borrower Benefits on private loans may be less favorable than those on federal loans. -- Avoid turning to credit cards. Credit cards are not a good option for financing an education, as most come with high interest rates, annual fees and immediate repayment terms that can increase with late payments. -- Shop around. SimpleTuition's loan comparison engine lets students and parents compare and shop among more than 100 student and parent loans from almost 50 lenders. For more information, visit http://www.SimpleTuition.com.
SOURCE SimpleTuition, Inc.