DONâ€™T borrow without looking at the big picture. Your child should educate himself/herself about every aspect of their loan and consider it part of their college education: Is the loan subsidized (which means the government pays part of the interest; financial need must be demonstrated to obtain a subsidized loan) or unsubsidized? When will he/she need to start repayment? What interest rate is being charged? What happens if a payment is missed? Two payments? What will he/she do if they donâ€™t get a job right after graduation? Explore deferment and forbearance options, but be aware that interest will still accrue. He/she should also know about loan forgiveness programs and explore the tax implications of their loan.