How to borrow for higher education

Source: Liz Pulliam Weston

Don't borrow more in total than you expect to make your first year on the job.

This advice should keeps the cost of your debt to something you can actually afford to repay.

If you're not sure what your future career might pay, you can visit the U.S. Bureau of Labor Statistics for estimates.

Don't borrow unless you're sure you'll graduate with a degree.

A degree won't pay off if you never actually get it. If you don't have a clear sense of what you want to study, consider a few semesters at a community college to narrow your major while keeping costs down.

Exhaust federal student loans first.

You won't find cheaper or more flexible educational debt than federal loans.

You also should submit a Free Application for Federal Student Aid (FAFSA) each year to see if you qualify for any grants, scholarships or other help.

Next, consider federal PLUS loans.

This federal loan program is designed for parents who want to help their kids pay for school, hence the name: Parent Loan for Undergraduate Students.

This debt is typically somewhat more expensive than federal student loans, but still cheaper than most private loans.

Lastly, apply for private loans with caution.

You'll get the best rates if you or a co-signer has good credit scores. Pay attention to any fees, since they can significantly increase the cost of a loan.

Check out the information and rate chart at FinAid.org for details on popular loan programs.