The rising cost of a college education has become a serious national issue so parents and students need to be smart consumers when deciding how to pay for college. According to student loan company MyRichUncle, the rules of thumb for student borrowing are:

1. Do not borrow a dollar more than you really need.

2. Assume the cost will rise by approximately 5% to 6% each year.

3. Look for and secure grants and scholarships before loans.

4. Look for cheap money: Federally-guaranteed Stafford loans are less expensive than private student loans.

5. Look for the “cheapest cheap money”: Some lenders charge less than others for federally-guaranteed student loans. (The government does not set the rate; it sets the maximum rate.)

6. Private student loans should only be considered as a way to fill any gap.  (Know that private student loans are almost always cheaper than credit cards.)

7. When going for private loans, shop hard and thoroughly, and do the math: One percentage point of interest can make a big difference in terms of the total amount you have to pay back.

8. Carefully consider the pros and cons of loan repayment options, including deferment while in school.  Deferring reduces the strain of making payments while so much capital is being spent on tuition and other expenses.  However, deferring does increase the overall cost of borrowing.

9. Do not borrow more than you believe you can afford based on your expected income post-graduation.