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If you’re still in school or considering going back to school, a host of financial-aid programs, including a number of loan programs, allow you to borrow at reasonable interest rates. Most programs add a few percentage points to the current interest rates on three-month to one-year Treasury bills. Thus, current rates on educational loans for students are in the vicinity of rates charged on fixed-rate mortgages (parent loan rates are a little higher). The rates are also capped so the interest rate on your student loan can never exceed several percent more than the initial rate on the loan.

A number of loan programs, such as unsubsidized Stafford Loans and Parent Loans for Undergraduate Students (PLUS), are available even when your family is not deemed financially needy. Only subsidized Stafford Loans, on which the federal government pays the interest that accumulates while the student is still in school, are limited to students deemed financially needy.

Most loan programs limit the amount that you can borrow per year, as well as the total you can borrow for a student’s educational career. If you need more money than your limits allow, PLUS loans can fill the gap: Parents can borrow the full amount needed after other financial aid is factored in. The only obstacle is that you must go through a credit qualification process. Unlike privately funded college loans, you can’t qualify for a federal loan if you have negative credit (recent bankruptcy, more than three debts over three months past due, and so on). For more information from the federal government about these student-loan programs, call the Federal Student Aid Information Center at 800-433-3243 or visit its website at studentaid.gov.

If you (or your parents) are homeowners, you may be able to borrow against the equity (market value less the outstanding mortgage loan) in your property. This option is useful because you can borrow against your home at a reasonable interest rate, and the interest is generally tax-deductible on up to $100,000 borrowed. Some company retirement plans — for example, 401(k)s — allow borrowing as well.

Parents are allowed to make penalty-free withdrawals from individual retirement accounts if the funds are used for college expenses. Although you won’t be charged an early-withdrawal penalty, the IRS (and most states) will treat the amount withdrawn as taxable income. On top of that, the financial-aid office will look at your beefed-up income and assume that you don’t need as much financial aid. Because of these negative ramifications, funding college costs in this fashion should only be done as an absolute last resort.

In addition to loans, a number of grant programs are available through schools, the government, and independent sources. You can apply for federal government grants via the Free Application for Federal Student Aid (FAFSA). Grants available through state government programs may require a separate application. Specific colleges and other private organizations (including employers, banks, credit unions, and community groups) also offer grants and scholarships.

One of the most important aspects of getting financial aid is choosing to apply, even if you’re not sure whether you qualify. Many scholarships and grants don’t require any extra work on your part — simply apply for financial aid through colleges. Other aid programs need seeking out — check directories and databases at your local library, your high-school counseling department, and college financial-aid offices. You can also contact local organizations, churches, employers, and so on. You have a better chance of getting scholarship money through these avenues.