The first thing you need to do is to complete the Free Application for Federal Student Aid (FAFSA) form, which is required by all public and private schools. Get a copy from your school’s guidance counselor or financial aid office, by visiting www.fafsa.ed.gov, or by calling 1-800-4-FED-AID.

• Campus-based aid. The Federal Supplemental Education Opportunity Grant (FSEOG), Federal Work-Study (FWS) and Federal Perkins Loan programs are funded by the government and provided to students with the greatest economic need. Individual colleges administer some or all of these programs themselves. Note that deadlines are usually earlier than for filing an FAFSA.
• Subsidized Stafford loans are federal low-interest, needs-based loans, where the government pays yearly interest while you’re in school. They have no origination fee.
• Unsubsidized Stafford loans are federal loans that aren’t based on financial need. The difference is that you’re responsible for interest that accrues while you’re in school. They have no origination fee.
• Grad PLUS loans are federally sponsored student loans for graduate students that are unrelated to financial need. They have greater borrowing capacity than Stafford Loans, but interest rates are higher, and there is a loan origination fee.
• Private student loans are offered by banks and other financial institutions. They aren’t guaranteed or subsidized by the government and typically carry higher interest rates than federal loans. Their main advantage is you can borrow more than with federal loans. Details and rates vary widely.
• College-sponsored loans are offered by some colleges. Interest rates may be lower than federal student loans. Check each college’s aid materials to see what’s available.
• Federal PLUS (Parent Loan for Undergraduate Students) loans. These federally sponsored loans allow parents to borrow for their children’s college expenses. Interest rates are fixed – although higher than student loans – and there is a loan origination fee.
• Private parent loans are offered by banks and other financial institutions, usually at higher interest rates than PLUS loans. They may also have a loan origination fee.
• College-sponsored parent loans. Some colleges offer their own parent loans, at rates below PLUS loans. Check each college’s aid materials to see what’s available.

Keep in mind that you’ll have to begin paying off your student loans once you graduate. Most federal loans offer a grace period, but many private loans do not, so check your loan paperwork carefully – you don’t want to start off your career on the wrong financial footing!

If you can’t afford your full monthly payment right away, talk to your lender about different repayment options, including:

• Extended loan term (drawback – this will increase the overall interest amount paid).
• Graduated repayment schedule, where payments start low and gradually increase as your income grows.
• Economic hardship deferrals (available with federal loans under certain conditions).
• Some private loans allow “forbearance,” where you can stop making payments for a fixed period of time (drawback – interest continues to accrue).
• Refinance or consolidate loans at better terms (make sure added fees don’t negate the savings).
• Ask about discounts for online or automatic deduction payments, or rate reductions for on-time payment history. You may be able to shave a point or two off your loan rate. It’s extremely important that you don’t miss payments or default on your loan; otherwise, you could hurt your credit score and make it much harder to borrow money for a car or house later on. Remember, it’s in your lender’s best interest for you to continue paying off your loan, so don’t hesitate to call them if you see problems brewing.

One way to ease the sting of college costs is to tap into the tax advantages available to you. Once you start paying off your loan, you may deduct the interest from your taxes. Search the IRS website (www.irs.gov) for "Student Loan Interest Deduction."