WASHINGTON, D.C., April 1, 2008—On the first day of Financial Literacy Month, D.C.-based financial publisher Kiplinger today unveils an educational video on paying for college and how to borrow wisely. Entitled “Borrow Smart,” the easy-to-understand and informative 24-minute video first offers tips on saving, keeping costs low, and accessing scholarships and grants. Kiplinger experts then advise families on how, when necessary, they can borrow wisely to make the investment in a college education.

“As college costs continue to rise, students and their parents need to know all their options for paying the bills, and that includes how to borrow smart when borrowing is necessary,” said Knight Kiplinger, editor in chief, Kiplinger Publications. “This video cuts through the complexities to offer guidance so graduates can enter the workforce with a great education—and with as little debt as possible.”

The film, written by and featuring editors of Kiplinger's Personal Finance magazine, was underwritten by Sallie Mae, the nation’s leading saving- and paying-for college company. Sallie Mae champions its “1-2-3 approach” to paying for college: first, tap “free money” such as grants and scholarships; second, fully exhaust federal loans; third, fill any gap with private education loans.

“One of the largest financial decisions many families will make is how to fund their children’s college education,” said C.E. Andrews, president, Sallie Mae. “More than ever, during today’s uncertain economy, families need good information to help plan, save and pay for college. Sallie Mae is proud to sponsor this Kiplinger video to help parents and students tap free money first and then borrow wisely only what they need.”

This spring, 3.33 million students will graduate from high school, the largest class in American history. Research indicates that parents too often begin considering ways to pay for college late in the game. According to Sallie Mae’s 2007 Survey of Parents of College-Bound Freshmen, 61 percent of all parents of incoming college freshmen said that they began initial discussions about the best way to pay for college after the child entered high school. One-third of parents said they needed basic information about federal loans, private loans, and payment plans.

The College Board reports that the average cost of a four-year public college in 2007–2008 was $13,589 and the average cost of a four-year private college was $32,307. One-third of all college graduates finish with no debt. The other two-thirds who borrowed finished school with an average of $19,200 in student loans.

The educational video includes expert commentary from Kevin McCormally, editorial director of Kiplinger, Janet Bodnar, deputy editor of Kiplinger's Personal Finance magazine, and Jane Bennett Clark, senior associate editor and education editor of the magazine. It also features an interview with a young professional now paying off student loans and parents who are sending three children to college. Additional underwriting was provided by Discover Financial Services.

The video is a highlight of the “Paying for College” section of the Kiplinger Web site at www.kiplinger.com/money/
payingforcollege. Sallie Mae is also making it available to families across America via its Web site at www.salliemae.com/kiplinger. The video is accompanied by a downloadable guide, including discussion questions for parents and students to use as they talk about how to pay for college.

Kiplinger's Personal Finance magazine has been providing millions of Americans with down-to-earth advice on managing their money and achieving financial security since 1947. Along with Kiplinger.com, it is a highly trustworthy source of information on saving and investing, taxes, credit, homeownership, paying for college, retirement planning, car buying and many other personal finance topics.