When it's time to pay for school, there is a simple way to cut through all the financial information. It's as easy as "get the cheapest money first." And that's as easy as Sallie Mae's 1-2-3 approach to paying for college.^SM

1. Get the free money first. Scholarships and grants are funds that don't have to be paid back. Ask around, visit Sallie Mae's free scholarship search, and get all the "free money" you can.
2. Apply for federal student loans. Step two is federal student loans. They generally have below-market interest rates and more flexible repayment options. Even if you think you are not eligible for federal student loans, you can't be sure until you try. Submit the FAFSA and start the process.
3. Fill any gap with private loans. After you've exhausted free and federal money, private student loans can make up the difference. There are a variety of private student loans, each with its own requirements and features.