There are many opportunities to manage educational costs through long-term student and parent borrowing. Federal student loans are the best option, offering low cost and postponement of repayment until the borrower graduates. The parent PLUS is another federal borrowing opportunity that offers reasonable rates and attractive repayment terms. Enrollment of at least half time (6 hours undergraduate, 4 hours graduate) is required to receive federal loans. Private loans are the least desirable option. Interest accrual beginning immediately and fluctuates with market rates. Unlike federal loans most undergraduate private loan borrowers will need a cosigner. Overall, federal loan programs are less expensive than private loans and should be considered first when developing your cost management plan.