Much like those free credit card offers that show up in your mailbox on the first day of college, student loans are readily available and all too enticing for new students as well.  Sure, student loans can help pay the costs associated with college such as tuition, housing, meals, and even day-to-day living, but like the money you spend on a credit card, you will have to pay back the loan eventually—with interest.  Fortunately there are ways to keep your student loan debt to a minimum and still pay your way college.  There are a number of tips that can help you manage your student loan debt after college as well.

When applying for student loans there are several things to keep in mind.  According to the professional advisers of Boston-based ACCESS, a non-profit organization that helps public high school students apply for financial aid for college, new and seasoned students alike should:

• Understand the type of aid offered.  This means, you should know the difference between loans and grants (free money).  If at all possible, steer clear of loan packages with more than 50% loans. Keep in mind that work study does not go directly towards the tuition bill.
• Know your total debt.  You can expect to pay an additional $2,000 to $3,000 for each loan you take out. Multiply this by the four or five years you will be in school.
• Always accept all federal loans offered before resorting to private loans.  Private loans have much higher interest rates, shorter grace periods, and even shorter repayment periods.
• Remember that not all loans are created equal.  Student loans have additional fees and different interest rates.
• If at all possible, choose a college that has the lowest unmet need and that allows you to incur the least debt.

If you are well-informed about student loans before you sign on the dotted line, this can help you avoid a mountain of unnecessary debt after college.  Once you’ve graduated from college, there are a number of tips to keep in mind that will help manage your debt and keep your credit record clean. You should:

• Pick a plan
• Know what you owe
• Consider deferring payment
• Consider consolidating
• Avoid default

Pick a plan with the shortest loan term as possible. The standard repayment plan for federal loans is 10 years. Extended plans will give you more time to pay and lower monthly payments, but you will end up paying more in the long run and you could be paying your student loan back well into middle age or beyond.

Knowing what you owe is the first step in understanding how student loans work. As soon as you take out the loan, interest begins. So, in addition to your loan amount, you will have four-five years of interest when you graduate. With the exception of subsidized federal loans, the interest continues to add up during the grace period on all other loans.

Consider deferring your payment if you are in the military, unemployed, or experiencing economic hardship. You also can defer your loans if you attend graduate school at least half-time.  If your income is under $16,000, you will qualify for a economic-hardship deferment.  You can also qualify if you get public assistance or work in public service.  To qualify for an unemployment deferment, you have to prove that you are looking for work. Economic hardship and unemployment deferments are limited to three years.

Consider consolidating if you would like to get a fixed interest rate for the life of the new loan or if you have a federal loan with a higher variable interest rate.  This may extend the life of the loan, but with consolidation, you will also get new deferment rights.  This is beneficial if you are having financial problems.  There are no upfront costs or fees to consolidate.

Avoid default at all costs.  If you default on your student loans, it will go on your credit report.  You will not be able to get a credit card, home loan or car loan with a student loan default on your credit report.  As well if you default, you will still have to pay back the loan along with collection costs, court fees, and attorney fees. Another thing you should know is that student loans are federal so the government can also garnish your wages in an attempt to collect the debt.