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
-- 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.