‘PLANNIN Gz=; Choosing A Student Loan For College (NAPSA)—When it’s time to pay for a college education, a simple 1-2-3 approach can help students and families navigate the often confusing maze of financial aid information. First, investigate 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 sources such as employers, professional associations, as well as educa- tional institutions. The Internet can help in conducting your search. For instance, Sallie Mae, the nation’s leading provider of saving- and paying-for-college programs, pro- vides online support throughits CollegeAnswer.com Website, which has access to an award database containing more than 2.4 million scholarships worth over $15billion. Be Debt Smart The second step in the payingfor-college process 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.” After 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 that gap. A variety of private loans exist today, each with its own requirements, features and borrower benefits, ASK THE EXPERT @ depending on the lender. Because the relationship you establish with a lenderis likely a long-term one, it’s important to choose a lender with a reputable brand name, as well as industry experience. Do Your Homework As part of an ongoing effort to educate students, parents and graduates about managing debt and understanding credit, Sallie Maerecently launched its Be Debt Smart campaign. Consumers can access numerous tools and resources on smart borrowing for college, as well as how to establish and maintain good credit through responsible financial habits, on the Be Debt Smart Web site at www.salliemae.com/bedebtsmart. “Before choosing any student loan, become educated on the options available,” says Holler. “Most important, know how much money you need up front so that later on you are not saddled with more student loan expense than is necessary. “For many students, college is a crash course in personal finance 101. 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 themlater,” Holler adds.
