RESTON, Va., April 12 /PRNewswire/ -- With the cost of higher education
on the rise, it is more important than ever for students and families to do
their homework when it comes time to pay for college. Sallie Mae, the
nation's leading provider of saving- and paying-for-college programs, says
a simple 1- 2-3-approach can help navigate the oftentimes confusing maze of
financing options.
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Step one involves researching money that does not have to be repaid,
such as scholarships and grants. This type of funding is available from a
variety of sources, including federal and state governments and private
entities -- employers, professional associations, as well as educational
institutions. The Internet can be an excellent tool to use when looking for
college financing options. For instance, http://www.CollegeAnswer.com,
Sallie Mae's online planning and paying for college Web site, provides an
array of tools and resources, including access to an award database
containing more than 2.4 million scholarships worth over $15 billion.
The second step in the paying for college search is to apply for
federal loans, which typically have below-market interest rates and more
flexible repayment options. Says Martha Holler, spokesperson for Sallie
Mae: "Even if you think you are not eligible for federal money, you can't
be sure until you try. Complete the Free Application for Federal Student
Aid (FAFSA) to begin the process."
Once free and federal money options have been exhausted, students and
families may find they still fall short in terms of college financing.
Private, or alternative, loans can help fill the gap. A variety of private
loans exist today, each with its own requirements, features and borrower
benefits, depending on the individual lender. Because the relationship
established between a borrower and a lender is likely a long-term one, it's
important to choose a lending company with a reputable brand name, as well
as industry experience.
"Before making a decision on any student loan, become educated on the
options available," notes Holler. "Most important, know how much money you
need upfront so that later on you are not saddled with more student loan
expense than is necessary."
As part of an on-going effort to better educate students, parents,
graduates and others about paying for college and managing debt
responsibly, Sallie Mae recently launched its 'Be Debt Smart' campaign.
Consumers will find a wealth of information and support at
http://www.salliemae.com/bedebtsmart, including tips on how to borrow
wisely for college and how to establish and maintain good credit with
responsible financial habits.
"For many students, college is a crash course in personal finance 101.
Therefore, it's important for both students and parents to understand the
full effect of their college spending and make wise choices now that will
help them later," Holler adds.
SOURCE Sallie Mae
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