5 Tips for Parents Baffled by College Aid

If you're confused about what makes Pell different from Stafford, Perkins, PLUS and everything in between, you're not alone.

A new study finds -- not surprisingly -- that most parents don't understand the terms of their children's financial-aid packages for college. More than three-quarters of those surveyed by branding firm Siegel+Gale didn't know there is a big cost difference between subsidized loans and private loans, which come with higher interest rates.

A healthy portion of working-class families eligible for Pell grants -- 40% -- was also unaware that those don't have to be repaid.

"Parents really don't understand the true cost of college and the financial help that is available," says Peter Cohl, leader of Siegel+Gale's higher education division, "nor do they understand the difference between loans, grants, scholarships and work-study funds." ...