Confused About How to Pay for College This Fall?

SimpleTuition Offers Tips to Help Families Avoid Making Poor College

Financing Decisions

Aug 14, 2007, 01:00 ET from SimpleTuition, Inc.

    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. (, 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

SOURCE SimpleTuition, Inc.