Newswise — Among the many fun experiences associated with college, borrowing money to pay for school isn’t one of them. But taking out student loans is a reality for many students, and it’s important to know what you’re signing up for when you do.

Here’s Temple University Student Financial Services Director Craig Fennell’s take: “We try to think of loans as a last resort,” but “many people have to borrow these days.”

With that in mind, Temple experts offer the following six tips for students sorting their loan options.

1. Go to the federal government first.Loans offered through the federal government are the way to go, Fennell advises, because they tend to have lower interest rates and more benefits than private loans. Government loans can sometimes qualify for deferment (when repayment is temporarily delayed and, in some cases, the government pays the interest during that time), or forbearance (when you don’t qualify for deferment, this allows you to stop making payments or reduce payments for up to a year, though interest will still be tacked on). 2. Seek the subsidized.There are federal Direct Subsidized Loans and Direct Unsubsidized Loans, and there’s a big difference between the two. With subsidized loans, which require that you demonstrate financial need (based on FAFSA), the government pays the interest while you’re attending school at least half-time and for the six months following your departure from college.

“You always want to try to get subsidized first,” said Temple’s Assistant Vice President and Bursar David R. Glezerman.

Under unsubsidized loans, the interest will accumulate after you begin to borrow. If you take one of these, consider paying off that interest as you attend school. “It’s a good way to use your work study,” points out Emilie Van Trieste, Temple’s associate director for Student Financial Services. 3. When it comes to private loans, shop around.Research is key. Look at a few lenders and see which one is right for you.

“Call their office, see how easy it is to get through to the office, see what the customer service is like,” Van Trieste said. “This is a relationship that you’re going to have during school and then maybe years later, depending on how much you’re borrowing.”

You might consider applying for more than one loan to compare options (such as interest rates), but be cognizant of how this could impact your credit score. Also, tools like Bankrate’s student loan calculator can help you determine how much your monthly payments will be. 4. Understand where your parents may come into the picture.In terms of private loans, Van Trieste said, many lenders will require a credit-worthy co-signer, so have that person lined up before sitting down to apply.

There’s also a federal student loan offered for parents: the PLUS loan. Our experts note that the PLUS loan payments start at the time of the second disbursement (often times, the spring semester of the year in which the loan is taken). “It’s the only loan for educational purposes that goes right into repayment during that year and that, sometimes, is a shocker to parents who aren’t reading the fine print,” Van Trieste added. “Other student loans don’t enter repayment typically until they stop attending or attend less than part-time, so that’s a big distinction.” 5. Take only what you need.If the prospect of some extra bucks in a loan brings dollar signs to your eyes, look past them to the bigger picture.

“If you’re eligible for $10,000 but you only need $7,000, would you take $7,000, $10,000, something in between, or something less?” Glezerman asked. “Don’t borrow more than you need … in the long term, you’re paying back that amount, and you’re paying interest.” 6. Keep it together.It’s a simple but important concept: Stay organized.

“Get a folder or binder, and just keep your loan papers—everything you get, just put it in there,” Fennell said. “It will be a huge, huge help to you later so you have can have a (complete) record.”

For more information, see Temple's ongoing series explaining student financial matters.