If your financial-aid package includes a loan from the school itself, you'll probably receive that money automatically -- or will simply see the amount of the loan deducted from your tuition bill. But for most other loans, you'll need to find a lender (except for certain federal loans where Uncle Sam is the lender), complete an application and wait for approval.
In most cases, choosing a loan is fairly cut-and-dried. You could choose to decline a federal loan offered in a financial-aid package in favor of, say, a private loan, but in most cases you wouldn't want to. Subsidized Stafford loans are a very good deal for students, since Uncle Sam pays the interest while your child is in school. And it's tough to do any better than a Perkins loan (a federally funded loan that's administered by schools and has a 5% interest rate). Even unsubsidized Stafford loans are a pretty good deal, given the flexible repayment terms and low rate. (The Stafford interest rate is variable and can change annually, but it is capped at 8.25%.)
For private loans, you'll want to select the lowest-cost alternative, based on the loan's interest rate, fees and repayment terms.
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The following sections describe your options among federal and private loans.
Student Loans 101
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How an Irrevocable Trust Could Pay for EducationAn education trust can be set up for one person or multiple people, and the trust maker decides how the money should be used and at what age.
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UTMA: A Flexible Alternative for Education Expenses and MoreThis custodial account can be used to pay for anything once the beneficiary is considered an adult in their state. There are some considerations, though.
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Coverdell Education Savings Accounts: A Deep DiveWhile there are some limitations on income and contributions, as well as other restrictions, a Coverdell can be a bit more flexible than a 529 plan.
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529 Plans: A Powerful Way to Tackle Rising Education CostsContributions to 529 plans grow tax-free and are not taxed when they are used to pay for qualified educational expenses for the beneficiary.
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Car Prices Are Finally Coming DownThe Kiplinger Letter For the first time in years, it may be possible to snag a good deal on a new car.
