2014

Confused About How to Pay for College This Fall? SimpleTuition Offers Tips to Help Families Avoid Making Poor College

Financing Decisions



    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.

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