6 ways to help pay for college -- Page 2

5. A part-time job. Many students work during the academic year and some schools will keep lists of local part-time jobs. "That might be a better way to go than trying to find a job on your own," says Kenneth Redd, director of research and policy analysis for the National Association of Student Financial Aid Administrators. Start with the career services or financial aid office.

Two things to discuss with your financial aid counselor: Will the salary put any of your financial aid at risk? And if you have to drop a class to add a few hours to your work week, will you still be carrying enough hours to qualify for any scholarships, grants, loans or even your parents' health insurance plan? Second, working more than 15 hours a week could make you statistically more likely to drop out, according to a 2002 study by the American Council on Education.

6. Private loans. Most financial aid experts advise students to use private loans only when they've run out of other options.

Even so, "there are a fairly good number of private loans available out there that will allow a student to borrow upwards of $10,000 a year," says Redd. His advice: Start with the school's preferred lender list, but shop around. Check with three or four lender and see which one has the best repayment terms and interest rates.

Some questions to ask: What's the interest rate? Is it fixed or adjustable? Under what circumstances could it increase? How long do I have to repay the money? What are the options for repayment plans? Can I delay this until after graduation? If so, what will that end up costing?

What are the payments and when are they due? Are there prepayment penalties? What are the fees for late or missed payments? What is the lender's policy on you having to repay the loan while still in school? If you can put it off, will the interest still be mounting? "Depending on a student's cash flow situation, that obviously has a big impact," says Redd.

Depending on the loan, you might also need a co-signer, he says.

"I would caution people from getting loans that are not federally guaranteed student loans," says Kristof. Federal student loans "have a whole bunch of protections that private loans do not offer." And while some private loans are fine, "some of them are not," she says.

If the interest rate is high or can go up to almost any level, you could be walking out of college with a really big debt. Like many other financial aid experts, she cautions students to use private loans as "a last resort" when it comes to financing college.

One thing you need to know about the preferred lender list: It means more at some schools than others. While some colleges negotiate aggressively for good rates on behalf of their students before a lender goes on the list, others may not. "You don't know what your school is like," Kaplan says. "Compare it with an outside source."

"A lot of students don't want to take out student loans," says Ross. "You have to invest in your future. But what we don't want to see is a kid borrowing $10,000 to $12,000 a year."

Dana Dratch is a freelance writer based in Atlanta.