With college expenses at an all time high, families are grappling with how to pay for it all. For the 2006-2007 school year, the average total cost, including tuition, fees, room, and board, at four-year public institutions was $12,796, while at private intuitions it averaged $30,367.(1) For many families, it's clear that scholarships, awards and personal savings will not pay the college bills, so families must determine the best way to fill "the gap."
NEWTON, Mass. (BusinessWire EON) August 8, 2007 --
With college expenses at an all time high, families are grappling with
how to pay for it all. For the 2006-2007 school year, the average total
cost, including tuition, fees, room, and board, at four-year public
institutions was $12,796, while at private intuitions it averaged
$30,367.1 For many families, it’s
clear that scholarships, awards and personal savings will not pay the
college bills, so families must determine the best way to fill “the
gap.”
“Many families feel challenged when they
discover their hard earned savings, scholarships, grants and other
income do not cover all of today’s college
costs,” said Kevin Walker, CEO, SimpleTuition,
Inc. “After maxing out with Federal
student loans, families are left searching for ways to finance the
remaining ‘gap’.
Often, private student loans are used to cover part of the gap, but
given the difficulty in comparing loan pricing, structures, and details
like borrower benefits, families are often left confused and turn to
options which may not be the best financial alternative.”
SimpleTuition offers the following suggestions to parents and students
as they think about how to finance the gap:
-
Max out on Federal student loans before turning to private loans. Ultimately,
federal loans (look for names like “Stafford,”
“Ford,” or “Perkins”
in your financial aid award letter) are lower cost loans and have more
flexible repayment structures.
-
Take the time to research and compare loan options. It’s
the best way to ensure a good loan choice based on your financial
situation.
-
Weigh Borrower Benefits carefully. Most lenders offer
incentives (sometimes called “borrower
benefits”) to help their products stand
out. Students and parents need to evaluate each benefit for any
eligibility requirements. Keep in mind that Borrower Benefits on
private loans generally make less of an impact than on federal loans;
you may want to evaluate private loans on their base structure,
placing less weight on Borrower Benefits.
-
When applying for a private loan, apply with a credit-worthy
co-signer. This will increase your chances of approval for the
loan and will likely improve the rate and fee combination you receive.
“SimpleTuition is dedicated to helping
parents and students make sense of their education financing choices,”
says Walker. “Students and parents can visit
our website for easy-to-understand, independent information. At our site
families can research, compare and apply for student loans that make the
most sense for their unique financial situation.”
After answering a few quick questions – such
as, amount needed, date needed, and year of graduation –
SimpleTuition’s online tool custom crunches
numbers to allow users research and comparison on over 100 different
loan products from more than 45 lenders. This easy to use platform has
helped thousands of families determine the best loan options for their
needs. SimpleTuition is not a lender. For more information visit www.simpletuition.com.
About SimpleTuition, Inc.
Founded in 2005, SimpleTuition is dedicated to helping students and
parents make sense of education financing options. Recently featured as
one of Fast Company’s Top 12 Web 2.0
sites and received Outstanding Achievement Award for website development
from the Interactive Media Council, SimpleTuition offers the leading
independent and interactive solution for researching and comparing over
100 private, PLUS, Stafford, GradPLUS and Federal Consolidation loans
from more than 45 lenders. SimpleTuition is headquartered in Newton,
Massachusetts and is funded by Atlas Venture, IDG Ventures Boston and
North Hill Ventures. For more information, visit www.SimpleTuition.com.
1 CollegeBoard: Trends in College Pricing
2006-07
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