If you’re considering a college degree, you’re making one of the most important decisions in your life concerning investments in your future. On average, a collegegraduate earns $1.5 million more over the lifetime of a career as opposed to a non-collegegraduate.

Can’t afford to attend college? Wrong! Don’t use that as an excuse. There’s plenty of money available for college loans. In fact, you can do a lot, if not all, of your loan shopping and comparison online. You can even apply online for many types of loans.

Stafford Loan

The Stafford Loan is one of the most economical ways to pay for college. Acceptance is not based on your credit, and almost every student is eligible to receive a Stafford loan. Repayment does not begin until after you have graduated, and hopefully by this time, you have found gainful employment.

Stafford loans can be either subsidized by the federal government, or unsubsidized. For a subsidized Stafford loan, you must show financial need. For an unsubsidized Stafford loan, you do not have to meet a financial needs requirement. The fixed interest rate of a subsidized Stafford loan starts at just 5.6%, while unsubsidized fixed rates begin at 6.8%.

Students who are listed as dependents on their parents’ tax returns can borrow up to $5,500 for their first year, up to $6,500 for their second year, and up to $7,500 for their third year and beyond.

Independent students can borrow up to $9,500 for their first college year, up to $10,500 for their second year, and up to $12,500 for their third year and beyond. Independent graduate students can borrow up to $20,500.

To begin the process, you’ll need to fill out a FAFSA. You can apply online for a Stafford loan.

Federal Parent PLUS Loan

A parent PLUS loan is a loan made to parents or guardians to cover the cost of college, including books, tuition, housing, and other necessities. Parents have good credit to be approved for this loan. The interest rate is fixed, at 8.5%, and in many cases it’s tax deductible. Several repayment plans are offered. In case of financial hardship, a deferred payment option is provided. Parents can apply online.

Perkins Loan

This is a federally funded loan through the U.S. Department of Education. Each college or university decides which students receive their Perkins loans, based on financial need. Students must be enrolled at least half-time in order to qualify, and loan limits are as high as $5,500 per year for undergraduate students, depending on the specific educational institution and availability. For graduate students, the limit is $8,000 per year, annually. You will not qualify for a Perkins loan if you’re in default of a Title IV education loan or if you have been overpaid from a grant. The Perkins loan has a longer grace period for repayment than a Stafford loan has, and there are no loan fees involved with a Perkins loan. Interest on a Perkins loan is 5%. To begin the process, you’ll have to complete a FAFSA.

Work-Study Program

With a work-study program, a student works off some or all of his college costs by being employed by the college he attends. Based on his skills and experience, he might work in the library, the cafeteria, the student center, or in another capacity. Students who are especially gifted in an academic discipline might serve as tutors for a specific department.

Private Student Loans

With most private student loans, the interest on the loan must be paid monthly as long as the student is attending college, along with the six-month period after graduation. After that, monthly payments on interest and principle begin. Interest on private student loans can range from about 10% to over 15%, so it’s very important to compare loans before signing on the dotted line. The most popular place to find a private loan is through Sallie Mae, but many institutions offer private student loans.

If you have a good working relationship with a bank, you might be able to get a college loan there. CDs, savings accounts, and savings bonds can serve as collateral if the bank requires security for the loan.

Private Loans for Parents

Parents who need money for the college education of their children might want to check the rates and terms offered at their own bank. A second mortgage or a home equity loan often has lower interest rates than unsecured loans. Also, the interest on such loans are usually tax deductible.

Parents might also have enough real value in their life insurance policies to borrow against.

Forgivable Student Loans

If you earn a degree in an area of demand and need, part or all of your student loans may be forgiven. For example, in many states, if you earn a teaching degree and agree to teach for a specified time period in a particular county or in an area of need, your loan might be forgiven. For several states, your period of required service is only one year.

Before you ever begin classes, you have homework to do! Compare and contrast the benefits and disadvantages of the different types of loans, along with the individual lenders. Consider the interest rates, the life of the loan, the deferment period, and the maximum amount available. You might have to combine two or more loans to adequately meet your college needs. Be careful, however: It's easy to borrow today, but it has to be repaid in the future.