Another choice that you currently have when deciding how you are going to pay for college is a type of need based loan provided by the Federal Government. The Federal Perkins Loan carries a low fixed rate (5.0% for duration of the repayment). It is available for families that generate low yearly revenue who must apply using the standard FAFSA application. (For more information click HERE.)
The best part of the Federal Perkins Loan is that it currently is eligible for the Federal Loan Cancellation program. This only is available for teachers working in critical shortage areas (math, science and special education) but can result in the forgiveness of large percentages of the student loan.
The bad news is that there are currently rumors that the Federal Perkins Loan will be discontinued under President Bush's current budget. Hopefully this will not be the case as the low interest rate and potential for loan forgiveness makes this an attractive option when paying for college.
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