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.

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.

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.

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.

The near doubling in the cost of a college degree the past decade has produced an explosion in high-priced student loans that could haunt the U.S. economy for years. While scholarship, grant money and government-backed student loans -- whose interest rates are capped -- have taken up some of the slack, many families and individual students have turned to private loans, which carry fees and interest rates that are often variable and up to 20 percent. Many in the next generation of workers will be so debt-burdened they will have to delay home purchases, limit vacations, even eat out less to pay loans off on time. Kristin Cole, 30, who graduated from Michigan State University's law school and lives in Grand Rapids, Mich., owes $150,000 in private and government-backed student loans. Her monthly payment of $660, which consumes a quarter of her take-home pay, is scheduled to jump to $800 in a year or so, confronting her with stark financial choices.

One of the nicest things about my job is that I get to travel around the country speaking to audiences about managing their money and listening to people talk about their successes and challenges. Earlier this year, at the invitation of Sidney James-Nakhjavan, I enjoyed the hospitality of Auburn University, where I spoke to the Women's Philanthropy Board at the College of Human Sciences. I also met with a number of Auburn students who had taken Sid's seminar in personal finance, using my book, Money Smart Women, as a text. One of those students was Brandy Howell, who endeared herself to me by bringing along a copy of the book marked with copious Post-its.

Next to buying a home or funding your children's education, buying a car is the most expensive purchase you'll make. And car-related expenses, such as gas, maintenance and insurance, can take a big bite out of your wallet. Kicking a few tires is only half the battle. Before you begin looking for a new car, you should know your limits and what you should be spending. Experts say you shouldn't spend more than 10 percent of your gross income on car expenses, which includes the cost of the car along with insurance, gas and maintenance.

Before zeroing in on the vehicle you want to buy-new or used-it pays to have your financing already in place. This will eliminate one more area where a dealer can slip a few more dollars from your pocket into his. There are several places to borrow the money: Brick-and-mortar banks and credit unions. You can get an auto loan from a bank, credit union or another financial institution. You can have these loans approved before you ever hit the showroom. These sources of financing will usually offer the lowest rates you'll find, and credit unions are generally lower than banks.

Theory's great and reality's scary. The answer is "yes." But there are several big "ifs" attached. The question? Oh, sorry and it's one I get asked so often I thought you might know what I was referring to. So let me back up. People from all walks of life are inundated through e-mail or snail mail with long-term, low-interest credit card offers. You know the type: 1.99 percent interest until the balance is paid off, or something similar.

Auto financing can come from one of several sources, including banks, credit unions, and auto dealerships. If you're serious about buying a car, you need to investigate the various possibilities. Here are the top mistakes some people make when seeking and securing an automobile loan. 1. Not investigating all your options. Many people use credit unions for automobile loans, while others find good deals from their local banks. The key is to investigate all potential lending options, including the dealership. Several sites, such as RoadLoans.com, LendingTree.com, or E-Loan.com will help you make financing comparisons, and in some cases, secure loans.