The September 2006 issue of Money magazine features a story on the college debt problem. The report claims 2/3 of students borrow to pay for college. One in 10 have loans of $35,000 or more. The story does offer some money-saving steps to take before taking out student loans as well as tips for repaying your loans.

Money says that by shopping for the best terms and being a model borrower once you start repaying, you can dramatically reduce the total amount you have to pay back. Here’s an example:

Starting Point: You borrow $23,000. Total cost (with fees and interest): $32,452.

Smart Move: Eliminate up-front fees. (Amount Saved $690)

Smart Move: Automate payments, 0.25% interest rate reduction. (Amount Saved $353)

Smart Move: Pay on time, 2% interest rate reduction (Amount Saved $1,195)

Total Savings: $2,238

Source: FinAid, MONEY research