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* As reported in the 2003 Almanac of The Chronicle of Higher Education, more than 12.6 million undergraduate students were enrolled in college -- that’s one out of 20 people in the United States. So parents, you’re not alone in making some tough financial decisions.

* During the 2003 to 2004 academic year, The College Board reports the estimated average annual cost of attendance as being $29,541 at a four-year private college, $13,833 at a four-year public college and $10,981 at a two-year college. As the saying goes, paying for college is like buying a car every year -- the decision is whether it’s new or used.

* Student loans are critical for today’s college and university students. The American Council on Education reported in its 2003 Survey Findings that two-thirds of students or their family members currently depend on these loans to pay college expenses.

* Teen Research Unlimited states that teens spent $175 billion in 2003. When they leave for college, making good financial choices becomes even more important.

As noted by these statistics, paying for their education and managing spending are critical to your student’s success in school.

Student Loans -- Covering the Big Costs

Student loans are some of the most commonly used financial tools. Student loans are funds borrowed from a financial institution or federal or state government. Education loans must be repaid. There are at least three types of education loans:

Federal Perkins Loan is a federal loan program administered by colleges. It’s available to both undergraduate and graduate students and is based on need and the availability of government funds. The annual interest rate is 5 percent. Repayment begins nine months after the student leaves school or is less than a half-time student.

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Federal Stafford (student) Loans and Federal PLUS (parent) Loans are available through financial institutions such as U.S. Bank that participate in the FFEL program or through the federal government in the direct loan program. Currently rates are as low as 2.77 percent for Stafford loans and 4.17 percent for PLUS loans, with maximum annual interest rates of 8.25 percent and 9 percent respectively.

Financial institution (or “supplemental”) loans are for students (or their parents) who attend participating colleges and graduate schools. They are not based on need. This type of loan can be used as a supplement or replacement for Federal loans. U.S. Bank offers a number of supplemental loans where students can borrow up to the entire annual cost of attendance, minus other financial aid received, at competitive interest rates.

Information on the U.S. Bank’s student loans can be found on the web at usbank.com/studentloans or by phone at (800) 242-1200. One more thing -- even if you think you won’t qualify for college financial aid, try anyway. You might be pleasantly surprised and receive financial aid.

Checking Accounts -- Paying Everyday Bills

Moving in. Finding the dining hall. The first week of classes. Students have enough to worry about without having to worry about their finances. That’s why it’s important for students to set up a checking account as soon as they arrive on campus.

A checking account, combined with a check card, is the most convenient way for a student to manage finances at school. Managing money on a daily basis is convenient and easy with a checking account. Not only can students pay bills, they can have student loan payments deposited directly into their account, and they can make everyday purchases -- like books at the campus bookstore -- with a Visa Check Card. When students learn to manage finances with a checking account, it offers a valuable education that will serve students well in college and beyond.