Educated Financial Choices Start With You

WASHINGTON, D.C., (March 3, 2008) - Today, in another step in its mission to make college more affordable and help students educate themselves on all the possibilities of higher education, the Education Finance Council (EFC), an association of nonprofit and state-based student loan providers, launched its Financial Literacy homepage www.efc.org/finlit. Part of a long-term campaign by EFC members to promote financial literacy education, the site is designed to provide timely and concise information and user friendly tools to help students and families make informed decisions in managing their finances before, during and after college.

"EFC members work daily to keep students and families informed of the possibilities of college. A college education is often the biggest financial investment outside a home that a family will make, and EFC members understand that a strong financial health is vital to a student's success both in school and in life. The financial literacy homepage is designed to arm students and families with valuable tools to help them better understand the resources available to them," EFC President Kathleen Smith said.

Visitors to EFC's Financial Literacy homepage will be provided with key resources, including:

• What Is Student Financial Aid? - EFC members are committed to helping students get the information and support they need to access and succeed in college. In this section, students can learn about the different types of financial aid - grants, scholarships, work study and federal and private student loans. A step-by-step guide takes students and their parents through the federal student loan application process and for those unaware of the terminology, a glossary of federal student aid terms is included. This section also shows how a student's financial aid package is calculated and warns against falling victim to misleading financial aid offers that come through the mail or over the internet.

• Budgeting 101 - Budgeting is important as it allows you to know exactly how much you can, and can't, afford to spend. This section will assist students in mapping out a budget plan with short-term and long-term goals so they can keep out of debt and control spending.

• EFC's Guide to Credit - Good credit is the key to the ability to borrow from a bank or any other financial institution. Students will learn how an on-time repayment record on student loans is a good first step to developing positive credit. It is important that students are aware of the importance of their credit score when it comes to applying for a loan. This section offers tips for improving a low credit score and protecting your personal financial information from identity theft.

"We are excited to offer this important resource to students and their families," Smith said. "EFC members stand ready to assist students and families at all stages of their higher education experience."

Throughout the Financial Literacy homepage, students who need assistance are encouraged to contact their school guidance counselor, their financial aid officer, or a nearby nonprofit student loan lender.

EFC's mission is making college more affordable. Together with its members, EFC works to expand access to higher education by ensuring the availability of student loan funds while striving to make paying for college easier and less expensive for all students and families. EFC represents nonprofit and state-based student loan providers that participate in the Federal Family Education Loan Program (FFELP) as well as affiliated entities including guaranty agencies, lenders, rating agencies, insurers and investment bankers. .

Posted 03/04/08 to www.NASFAA.org. Posting of press releases is done as a service to Members and does not imply endorsement or support by NASFAA. NASFAA does not review this information for content or accuracy.