Unlike other forms of financial aid, education loans must be repaid-with interest. Still, most students use loans to help pay for college. If you're unable to meet all your college costs through other means like scholarships, current family income, and savings, then saying yes to a college loan can be a smart move.

Borrowing Tips

Wise borrowers keep these tips in mind so that they graduate with as little debt as possible:

• Borrow only what you need to cover education expenses. You don't have to borrow the full amount offered in the financial aid award letter.
• Consider working while in school.
• Look for ways to keep costs down, such as buying used books.

It's also a good idea to keep track of your loan debt and, when possible, to avoid borrowing from multiple programs and lenders.

Comparing Loans

Shopping for a loan-and making sure you understand the terms as well as your responsibilities-can be overwhelming. But it's an important step since loans differ widely. Signing the paperwork on a loan is an act that can have an impact on your life for the next 25 years-sometimes longer.

Whether you're looking for a lender to finance a federal loan or choosing between private options, you need to make sure the loans your family takes out have the lowest costs and best terms and conditions.

The Student Loan Comparison Calculator helps you evaluate and compare loans. You'll learn how much it will cost you in the long run to take out different loans, including the federal Stafford and PLUS loans as well as private, or alternative, loans.

Detailed results display the following information about each loan:

• Total cost per $1,000
• APR (annual percentage rate)
• Monthly payment