Since college graduates earn, on average, approximately $1.5 million more over their careers than their high school counterparts, it's a smart investment.

Get the "cheapest" money first

There are many financing options, and many students wonder which student loan to apply for first. Be sure you have applied for all the free money — grants and scholarships — you can. Since you want to take advantage of the “cheapest” money first, apply for student loans in the following order:

• First, every student should make the most of Federal Stafford loans, since these loans are sponsored by the federal government and offer substantial advantages, including below-market interest rates and the opportunity to delay repayment.
• Second, parents should consider Parent PLUS loans — federally sponsored loans for parents of undergraduate, dependent students that offer attractive benefits.
• Finally, students and their families should turn to private student loans to bridge any gaps that remain.

Be fully informed

Before making any decisions, borrowers should:

• Understand the process behind the federal financial aid program (which includes federal loans),
• Know what’s involved in the loan application process,
• Learn the benefits and responsibilities of cosigning a loan, and
• Be adept at checking loan status online.