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a little extra legwork, don't shy away from it, even if the competition is stiff. My main scholarship (nearly $70,000 total) was highly contested every year and required fairly high academic ratings, civic involvement, and an interview. Gulp. When I heard that last part, I nearly moved on to the essay-only scholarships, but thankfully I stuck with it, made it through the interview with a minimum of scars, and was lucky enough to be chosen.

While most of my college was paid by grants and scholarships, which never need to be paid back, I also had to take out some loans. If you have to take out student loans as well, don't worry you're in good company. According to the National Postsecondary Student Aid Study (NPSAS), two-thirds of undergrad students end up taking out student loans to help finance their education. The average loan amount? Nearly $20,000.

Figures like that can be frightening, but the good news is that student loans are not the demons they are made out to be. The government realizes that students aren't likely to be rolling in cash, which is why federal laws restrict the maximum interest rates organizations can charge for student loans. These can range anywhere from 6% to 8% depending on the type of loan you are taking out (compare that to the typical 15% to 25% interest rates on credit cards).

If that still makes your heart sink, the government throws in another benefit to sweeten the student-loan deal by allowing you to deduct up to $2,500 in student loan interest from your taxes. Combine that with the existence of several loan-forgiveness programs and a very reasonable repayment plan, and loans become a viable option.

The important thing when considering college or university is not how you're going to pay for it, but whether it is the best place for you. Financing college is always going to be difficult, no matter where you go, so you might as well make all that trouble worth it by going to a school you'll love surrounded by stimulating and interesting people and opportunities.

Learn more about this author, Bran Herbert.
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