Like many students, you go to college nonchalantly aware that you're spending a considerable sum of money on your education, but not really knowing exactly where the money is coming from or how much of it you're borrowing, or how you'd someday pay it back. So, it's fair to say many of us need or choose to borrow money for college without really understanding the long-term consequences.

Lenders will give you every penny you need to pay for your education; your undergrad, grad-school, post-graduate school and beyond. Just because you have access to the funds doesn't mean you should take advantage of the opportunity. I know several guys from college who took out loans for wild spring break vacations or high-tech gear and girls getting student loans to keep up with the fashionista lifestyle, i.e., designer clothes (Louis Vuitton bags, True Religion jeans, Christian Louboutin shoes, Prada, Gucci, Balenciaga, Betsey Johnson, Dolce and Gabbana and a lot of Juicy Couture).

It's not that student loans are bad. Remember two out five undergraduates need students loans to get through college, and a sensible amount of debt can be a wise venture in your future. The typical undergrad will own about $17,000 in loans after graduation.

Keep in mind, once you take out student loans, the debt can follow you forever and generally cannot be expunged in bankruptcy court; lenders are sticklers about being paid and are ready to screw your credit history without remorse. The problem is lenders will borrow you far more money than you can painlessly repay.

The general rule for borrowing money is that you shouldn't borrow more money for your entire education than you predict to make your first year out of college. This amount obviously varies based on your degree, e.g., is your degree in Computer Science, Engineering or Literature.

There are two basic types of loans: federal government provided or sponsored loans and private loans. Some of the most popular flavors of loans are Perkins, Stafford, Heal and PLUS loans, but don't worry (Parent Loans for Undergraduate Students) are your parents responsibility.

Federal loans have better rates than private ones and are more lenient - offering a variety of repayment plans and even the chance to have some of your debt erased if your income is low. Private loans have higher interest rates that start around 8% and can go as high as 19%, in most cases they cannot be erased or forgiven.

There are two kinds of federal loans:

In a subsidized loan the government will pay the interest while you're in school.

With an unsubsidized loan interest starts to occur as soon as you get the loan (although payment may not be due until graduation).

Perkins Loans: These are subsidized loans awarded to students with "exceptional financial need" and come with a fixed 5% interest rate. You are allowed to borrow up to 20k for undergrad work and another 20k for grad school.

Paying Off Your Student Loans: The Reality

Unless you have an untimely death, you can't avoid paying off your loans. The option you do have is called loan forgiveness: Perkins loans can be canceled if you work in professions such as nursing or law enforcement, volunteer for the Peace Corps or teach in a low-income urban area.

Volunteering loan forgiveness:

AmeriCorps - One year of your life will earn you about $4,725 to use toward college debt. For more info call them at (800) 942-2677.

Peace Corps - Call (800) 424-8580 to find out how to defer most loans until after you leave the program and even get some of your loans reduced up to 70%!

VISTA (Volunteers in Service to America) - VISTA will pay of about $4,725 of your loans if you join them on their cause (ending poverty, homeless, and illiteracy in the US for at least 1,700 hours. Contact VISTA at (800) 942-2677.

Military Service - You can earn up to $10,000 to pay off your loans.

Teaching - You can get your loan forgiven in full if you have the love to teach special education, teach in low-income schools/communities, or teach during a designated teacher-shortage.

Social Services - If you work for an organization that provides services to families of low-income areas, are a full-time nurse or medical technician or law enforcement officer, you can get your loan totally forgiven.