Sallie Mae study shows poor college financing

•Apply for scholarships and grants. A good resource is www.FastWeb.com

•Complete the Free Application for Federal Student Aid (FAFSA) form www.fafsa.ed.gov). Depending on factors such as the number of college undergraduates in the household, families with annual incomes of $100,000 or more may qualify for aid.

•Exhaust federal loan options, before considering private or home equity loans. Federal loans have lower interest rates and better terms.

•Don't overborrow. Though it's tempting to cushion loans, you'll regret it when it‘s time to repay.

•If you need private loans, shop hard for those with the lowest interest rates. A one-point difference is significant. For example, you'll pay $5,700 less on a $10,000 loan with a 8.69 percent interest rate than one at 9.69 percent. Compare rates at banks, credit unions and on the Internet. A parent or other co-signer with strong credit may help you get a lower rate.

•Consider immediate repayment of loans. If you can start paying back while you're in school versus deferring the loan until after graduation, you can save thousands of dollars.

•Take a hard, unemotional look at the job and salary prospects for your major. Be sure your field of study will support what it will cost to pay student loans. It might be worth starting off at a two-year or less expensive school, or thinking about career alternatives.

Sources: www.MyRichUncle.com, Sallie Mae, Oklahoma Guaranteed Student Loan Program.