By Dan Clute

Board Member, Iowa Student Loan Liquidity Corporation

If you have a student going to college in the next few years, you may be confused about the different payment options. Often, families find that their own savings and college earnings, after receiving scholarships, grants, and other financial aid, are insufficient to pay for residency costs.

If your student needs additional financing, you may be wondering whether to start with government or private student loans, or whether a fixed or variable rate is better. And what about the loans parents take out to pay for their children’s college tuition?

It can be overwhelming to understand how government and private student loans differ, the pros and cons of each, and how to choose the best loan for your situation. And it doesn’t help when you get conflicting advice from other families who’ve been through the process.

This is a time to rely on expert advice. The Iowa Student Loan Liquidity Corporation is a nonprofit organization that has been helping families get the funds they need to pay for their college education for more than 40 years. Under the ISL Education Lending name, ISL offers lower-cost private student loans, as well as scholarships and free online resources. We have put this experience to work for you in a free college finance information kit.

The kit is available to any family that wants it. All you have to do is visit www.IowaStudentLoan.org/CollegeKit and request a copy to be delivered to you electronically or mailed to you.

This package gives you the opportunity to make informed decisions about college funding. It contains information about:

• College payment options, including the difference between federal and private loans.

• What parents and co-signers need to know about student loans.

• What you should know about private student loans.

• Compare parent loans.

• Free online tools to reduce borrowing.

The kit is a great way to start or expand family conversations about the cost of college, ways to pay for it, and how much each party has to contribute. It is important to review educational plans regularly to ensure that the path chosen continues to fit the student’s goals and the family’s financial situation.

Additional free resources are also available at www.IowaStudentLoan.org to help families as they begin or plan their education after high school. The Parent Handbook, a free online resource, and Student Planning Tips for Parents, a semi-monthly email, help parents start conversations with students who are in middle school or higher.

High school students can try the Student Loan Game Plan, Return on College Investment, and College Funding Forecaster tools to explore recommended maximum debt levels, educational paths and funding, and starting salaries for a variety of educational paths and careers.

All of these tools are free and available online. Learn more about each of them by requesting your complimentary copy of the College Financing Information Kit at www.IowaStudentLoan.org/CollegeKit.