Private student loans are not guaranteed by the government and their interest rates are not capped. Before considering one, make sure all government and institutional financial resources are exhausted. If there are no other ways to fill the financial gap, shop around and do research before choosing a private loan. Keep written records of all forms, applications and correspondence with your lender, especially regarding discounts and special deals, for the entire life of your loan.

If they haven't already, millions of seniors graduating from high school will turn their attention over the next few weeks to paying for college. Scholarships and grants -- which don't have to be paid back -- are the best option, of course. But not everyone has the academic record for merit aid, or a great jump shot that would earn a sports scholarship. About two-thirds of four-year college students who graduate do so with some debt -- typically about $19,000.

FINANCIAL AID is quickly becoming a synonym for student loans. These days close to half the students in four-year colleges take out loans - and it's a rare student that isn't confounded by the process. This section should help to clear up some of the confusion. The three most common government-sponsored education loans are called Stafford loans, Perkins loans and Plus loans. Stafford Loans are those that students borrow themselves. Loans disbursed after July 1, 2006, have a fixed interest rate of 6.8%. Loans disbursed previously are capped at 8.25% but can vary below that ceiling annually. Students who take out Staffords are limited to $2,625 the first year, $3,500 the second and $5,500 the third and fourth (and fifth, if need be) and $8,500 per year for graduate school. Undergraduates can borrow up to $23,000 total, while the cumulative limit for undergraduate and graduate borrowing is $65,500. Eligible borrowers can get part or all of their loans subsidized - meaning that the government pays the interest while you're in school. You don't start paying off the loan until six months after graduation.

LIKE BEER PONG AND illegal music swapping, student loans have become an unavoidable part of the college experience. Graduate students paid more than three quarters (76%) of their 2004-05 school bills using student loans, according to the College Board, a nonprofit organization for education testing and information. And nearly half (46%) of undergraduates' costs were covered by loans. With both graduate and undergraduate students, the proportion of loans compared to grants and other forms of financial aid is growing. So if you've got college-bound kids, chances are you or your children will have to take on debt to pay the college bills. And while shopping for the federally guaranteed Stafford and Perkins loans is relatively straightforward - the financial aid office basically sets the limit on how much you can borrow and the government determines the interest rates - shopping for a private education loan is an entirely different thing.

The homework begins for today's college students long before they set foot in a university lecture hall. The late nights start with poring over an increasing array of student- loan options. "A big part of getting to college and staying in college is figuring out who offers the best interest rate, who offers the best loan-repayment program, who has the best customer service when you ask them questions," says Joshua Chaisson, a senior at the University of Southern Maine who estimates that he will graduate with $14,000 in loan debt. Bruce Gunther, a history teacher who attended a seminar on student loans at Franklin and Marshall College, where his son is a sophomore, says: "We've refinanced our home twice, and that is a piece of cake compared to the student-loan process." Indeed, perhaps the only simple fact about student loans is that rates have jumped. As of July 1, interest rates on existing federal Stafford loans increased to 6.54 percent from 4.7 percent, and they rise to 7.14 percent when a student enters the repayment period. All new Stafford loans now carry a fixed rate of 6.8 percent, and rates on new plus loans for parents have also jumped.

Students are relying more and more on private lenders to fund their college educations. Last year, private college loans totaled $17.3 billion and accounted for one out of every five dollars borrowed for college, according to the College Board. A decade ago, private lenders provided only 4 percent of college loan money. Soaring college costs are driving the trend. When Sharlyne Woodbury was accepted to Northeastern University, she scrambled to scrape together cash for tuition and fees. Government loans helped, but because they have borrowing caps, her financial aid adviser recommended supplementing federal aid with private loans.

When the U.S. House of Representatives recently voted to halve interest rates on some student loans, it left out an entire class of borrowers: graduate students. Twentysomethings considering going to grad school should also know that there is less federal grant money available than for undergraduates.

Don't rule out the college of your freshman's dreams because you think it's too expensive. Experts say marketing a four-year college education resembles marketing airline tickets: Schools charge full price to those students who can afford to pay, then offer discounted "fares" to everyone else to fill their classrooms. When you receive a financial-aid offer, don't assume that the numbers are written in stone.

These charities make no-interest loans to students. Many religious and ethnic organizations also offer no- or low-interest education loans. Central Scholarship Bureau Makes about 120 loans annually of up to $15,000 over four years to meritorious students from central Maryland whose families have adjusted gross incomes of less than $75,000. Rolling deadlines

The dealership experience can be extremely stressful, but it doesn't have to be. You could know everything there is to know about the cars you're considering, but that's only a fraction of the buying process. If you want that seductive new sedan at a good price, you're probably going to need to know what to say - and more importantly, what not to say. Some people loathe the whole car-buying experience simply because they anticipate getting conned. A few hundred dollars isn't a big deal on the price of a luxury car, but it's the idea of smart shopping and that sense of getting a good deal that's especially important. For luxury car buyers - notoriously labeled the shrewd shoppers - a good deal is icing on the cake.