If it's any consolation, I think all families with even one member who's college-bound are in a sweat about how to pay for it. The two things I can find to say that are positive are a) that there are some good deals on putting money aside for future plans; and b) if you have to borrow, the federally-backed loans for that purpose are very low-interest and not hard to get.

Money guru Suze Orman had an article on this in a recent issue of Oprah's magazine O; and the SAT site gives succinct information and applications on line or by phone. The site has information about private loans as well, but these will always be more costly and, if you can get by without them, it's cheaper.

Orman first, in case you have ten more years to think about this. (She's talking about investing, not borrowing.) There are four vehicles she likes.

First, Coverdell Accounts: if your gross income is under $95,000 as a single filer ($190,000 couples) you can put $200 a year into a Coverdell Education Savings Account, which anyone else can contribute to also (grandparents, for example). The contribution is not tax-deductible, but withdrawals used to pay for education won't be taxed.

Second, 529s: These are complicated, but worth your time because they give you a fixed percentage of credit on future costs at a particular school. Go to www.independent529plan.org.

Third, Roth IRAs: These retirement plans can also be used to pay for college. Such withdrawals are not taxed.

Lastly, Government Bonds: If your income doesn't exceed $59,850 ($89,750 couples) purchase Series EE Bonds and Series I Bonds. When you cash them to pay for college, the money is tax-free.

OK now it's ten years down the road and you didn't do all of the above; now what? Now you go to www.collegeboard.com. If you're a student, click on Students. Then select Federal Student Loans and you'll see two types, both called Stafford Loans, in one version called Subsidized and another called Unsubsidized. No credit history is required for either one. All loans require an Origination Fee which amounts to 3% of the loan.

If you can document financial need, try for the first: you'll borrow smaller amounts, but you'll pay no interest until you're out of school. $2,625 is available for your first year, $3,500 for your second, $5,500 for your remaining undergraduate years, and $8,500 for graduate study.

The interest rates they give are variable, depending on what Treasury Bills cost. (If you need more, you can get it through the Unsubsidized Stafford -- see below.) You'll incur interest charges at 2.82% while in school. Six months after you're out, you'll start payments. Your interest rate will increase to about 3.42%, (that's the variable part) and you'll have ten years to complete payments.

If you can't demonstrate financial need, or if you're taking out a second student loan, go for the Unsubsidized Stafford. The amounts available are somewhat larger. The low interest rates are the same, but you must pay the interest even while in school. You have ten years to complete payments.

At www.collegeboard.com, if you're a parent, click on For Parents. There is information on private loans; but again, if you can get by without them, it's cheaper. The kind you want are federally backed, and they're called Parent PLUS Loans. (You need to have no current loan delinquencies.) The maximum loan is the cost of the education minus whatever financial aid has been given or promised. You get a variable 4.22% interest rate, and you get ten years to pay off the loan.

Not wonderful; but not too bad.

Now if you're just an interested reader, someone who's starting out and is **maybe just thinking about** having a baby, this could be a good time to talk to grandparents about investing in a college education.....