When financing college, always remember that grants and scholarships are preferred because you do not have to repay them. While they may have certain conditions attached, like a set GPA, you won't have a long-term loan obligation after. If you have to take loans out, remember that private loans are not subject to the same regulation as federal student loans. You may have different deferral and forbearance options, and you may not be able to consolidate them for lower interest rate or possible loan forgiveness.