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Cost plays a huge role in many students’ college choices. Depending on their financial situation, some students dismiss the schools with high tuition in favor of lower-cost in-state schools because they think it will save them money. In actuality, they could be doing themselves an economic disservice in the long run.

Using data from U.S. News and World Report’s most recent student debt survey of 25 top-ranking public and private schools, Reuters revealed that, on average, 53 percent of students surveyed received financial aid and at least half of students at most of the institutions graduated debt-free...but it depends on what school they attended: Princeton graduates, for example, owed only $5,000 at commencement while University of Michigan graduates owed more than $27,000 despite Michigan’s in-state costs being less than half of Princeton’s. How is this possible? Numerous schools including Princeton, Caltech, Davidson College and the University of Washington have eliminated student loans from their financial aid packages and others like Harvard, Stanford and UC Berkeley have capped contributions for students from low- and middle-income families. (Check out the entire article here, including this handy infographic.)

While it is difficult for many students to attend college without taking out some kind of loan – especially those attending state-run institutions which don’t have the fiscal means to eliminate debt – it is possible to avoid debt if you choose the right school. Thoughts?

Many students think they know what it takes to get into the college of their choice but with record-low admissions rates, insufficient financial aid and increasing student loan debt, the path to higher education is not as clear-cut as it once was. Good grades and high standardized test scores aren’t enough anymore – the incoming freshman class at Berkeley, for example, includes an expert Ping-Pong player, an Irish dancer and a figure skater, as well as a TV star and a champion roller skater – but what if you don’t have the access to even that kind of basic information? The filmmakers behind "First Generation" hope to explain just that.

Adam and Jaye Fenderson's first feature film follows four students – an inner city athlete, a small town waitress, a Samoan warrior dancer and the daughter of migrant field workers – through as they apply to college and attempt to be the first members of their families to attend college. "First Generation" explores how, despite these students all possessing valuable attributes inside and outside of the classroom, the absence of college graduates in a family can result in a lack of financial support and a shortage of knowledge about the college admissions process as a whole.

Check out the trailer here when you have a minute and let us know what you think. If you are or will be a first generation college student, could you relate to the individuals featured? Do you think "First Generation" should be viewed by all students applying to college? Weigh in in the comments section!

Recent reports suggest that student loan debt has surpassed credit card debt for the first time and will reach $1 trillion this year. The average college student leaves owing $25,000 in loans, putting them at risk of having to significantly delay moving on to different life stages such as buying a house, getting married and even having children. Curious as to how the government has responded in aiding and relieving students of insurmountable debt? By possibly doubling the interest rate of the most popular federally subsidized loans, of course.

On Tuesday, college students delivered more than 130,000 letters to congressional leaders at the Capitol to protest the increase. Unless Congress takes action, the interest rate on subsidized Stafford loans is set to double from 3.4 percent to 6.8 percent on July 1, increasing the average debt by $2,800 for more than 7 million students receiving the loans, according to a spokesman for the Democratic members of the House Committee on Education & the Workforce. Why is Congress considering the increase when so many students are already in debt? In 2007, Congress voted to cut the Stafford interest rate, which in turn cost an estimated $7.2 billion from 2007 to 2012 and, according to the Congressional Budget Office, that burden was shouldered almost entirely by lenders and loan-guarantee agencies. "We all want to promote efforts that will reduce college costs, but the era of empty promises has to end," said John P. Kline Jr., a Republican from Minnesota who is the committee's chairman. "The interest rate hike students face is the result of a ticking time bomb set by Democrats five years ago," Mr. Kline said. "Simply calling for more of the same is a disservice to students and taxpayers." (For more on this story, click here.)

Soon-to-be college graduates, do you fear crippling student loan debt? What steps are you taking to prevent becoming a statistic?

If you’re a high school senior considering applying to some of the top schools in the country – MIT, Harvard, Howard, etc. – you may have a better chance of getting in than your peers did last year: According to Bloomberg reports, elite schools across the country are experiencing a slowdown or drop in applications for freshman admission after years of record increases.

Has attending the Ivies become passé? Not likely but there are a number of factors that probably played a role in the decrease, like the adoption of the Common Application, which made it easier for students to apply to multiple schools. Both Harvard and Princeton reinstated early admission policies and then there’s the stagnant economy. So while your chances of getting behind those ivy gates are slightly better, paying back huge tuition bills is a major aspect to consider. Take for instance Columbia’s $59,208 tuition; in this economic climate, students may feel that just too expensive and are opting for more reasonable choices. (For more on this story, click here.)

Does this information have you reevaluating where you’ll apply? Let us know in the comments section.

by Radha Jhatakia, Scholarships.com Virtual Intern

Much of the time, college students who are able to get the classes they need and have an education plan are able to graduate early. Graduating early can be a blessing or a curse depending on how you look at it; it worked for my fellow virtual intern Jessica but how do you know if it's right for you? Here are some questions to ask yourself:

1. Do you have job offers lined up after graduation?

• If you have a job waiting for you, graduating early would be a benefit for you. You would be ahead of other classmates in your field and would have time to work rather than taking extra classes that aren’t necessary. If not, graduating early may not work for you. Staying the extra semester or quarter would allow you resources to find a job via student internships, the college career center and university relations in company HR departments.

2. Did you go to college close to home?

• If you said yes, then graduating early wouldn’t be a tough transition but if you attended college further away, graduating early may be more difficult. Many if not all of your friends were will still be in school and you’ll also miss out on the senior graduation programs.

3. Did you take out loans to pay for college?

• Students with loans often try to graduate early because it saves them some money: Rather than taking out more loans and building up interest on the ones you already have, students can save an entire semester or quarter’s worth of tuition, housing and miscellaneous expenses. If you paid for college with scholarships, grants and savings, there isn’t as much of a financial strain to stay the full time since you don’t have to pay the money back like you have to with loans.

After you answer these questions, you should be able to determine if you should graduate early or not. Just remember there are pros and cons to both and you should choose the path that’s right for you.

Radha Jhatakia is a communications major at San Jose State University. She's a transfer student who had some ups and downs in school and many obstacles to face; these challenges – plus support from family, friends and cat – have only made Radha stronger and have given her the experience to help others with the same issues. In her spare time, she enjoys writing, reading, cooking, sewing and designing. A social butterfly, Radha hopes to work in public relations and marketing upon graduation.

If you are a recent college graduate, those student loans you haven’t thought about in four or more years are about to come calling...and collecting. While some students’ debt tallies are quite large, the amounts owed by others are much more manageable.

U.S. News & World Report has reported that the average amount of student loan debt (defined as money loaned to students from colleges, financial institutions and the government, not including parent loans) for a 2010 college graduate was about $25,000 but this number truly varies depending on what school a student calls his or her alma mater: For example, 2010 graduates of Alice Lloyd College have an average total indebtedness of only $3,108 and those from Princeton owe just $4,385, due in large part to more grants, scholarships and work study that do not require repayment. Here are all of the schools that made the top 10 and the average amount of student loan debt 2010 graduates incurred:

• Alice Lloyd College - $3,108
• Princeton University - $4,385
• Anna Maria College - $5,152
• College of the Ozarks - $5,389
• Berea College - $5,836
• Reinhardt University - $6,131
• Clearwater Christian College - $6,365
• California State University Bakersfield - $6,730
• East-West University - $7,000
• Cameron University - $7,200

Does this information have you reevaluating your college plans or financial aid choices?

The Federal Pell Grant program as we know it has been in jeopardy in recent years but an agreement reached last night will keep its funding intact. While college students will still receive the maximum award amount per year, the number of eligible recipients is a quite different (and unfortunate) story.

The Chronicle reported congressional leaders agreed on a spending bill for the remainder of the current fiscal year that would increase funds for the National Institutes of Health by 1 percent, thereby maintaining the maximum Pell Grant amount of $5,550. To make this $300 million increase possible, however, eligibility for the award has been restricted. Under the bill, Pell Grant funding will only be available to each student for six years instead of nine, high school diplomas or GEDs will be required (no more ability-to-benefit tests) and the income cap for receiving an "automatic zero" expected family contribution will be lowered from $30,000 to $23,000. The interest subsidy on undergraduate student loans during the six-month grace period after a student graduates would also temporarily end.

Yes, the changes are significant but they are far less severe than an earlier bill which would have lowered the income cap to $15,000 and reduced the amount of income working students could exclude when applying for financial aid – changes that would have negatively impacted thousands of college students, especially those attending community colleges. We want to know what you think about the news. Is there a way to maintain federal funding without decreasing eligibility or do you think this bill is the best option?

When an acceptance letter arrives from your dream college, your first instinct may be to scream, cry and jump on your couch with Tom Cruise-caliber flair. Feel free to give in to those urges – hey, you earned it! – but realize you will soon have to figure out how to pay for your education. Can you really afford this school, not only while you’re attending but after you graduate as well? A new list from Kiplinger says your dream school could be a reality after all.

The list, which rates how well colleges actually do in making themselves affordable, includes schools with students who graduate with less than $20,000 in student loan debt on average. The Washington Post’s Daniel de Vise also weighed in, supplementing Kiplinger’s findings with data from the Institute for College Access and Success. Here’s what he found were the most affordable institutions based on the average amount of debt graduates carry:

• 1. Princeton University
• 2. Williams College
• 3. Howard University
• 4. Harvard University
• 5. Claremont McKenna College
• 6. Hampton University
• 7. Rice University
• 8. Pomona College
• 9. CalTech
• 10. Stanford University
• Honorable mentions (less than $20k debt): Amherst, MIT, UPenn, Clemson, Vanderbilt, Dartmouth, Bucknell, Wellesley, Boston College, Duke

In recent years, college students have become more cautious about taking out loans to pay for school. There are multiple reasons for this – horror stories from friends or siblings, limited job prospects after graduation and high interest rates have all been cited – and while it’s an admirable goal to graduatefrom college debt-free, educators think this approach could actually hinder students from getting degrees.

According to a recent Associated Press article, students are attempting to limit borrowing by working longer hours, taking fewer credits (and often not enrolling full-time), living at home and attending less selective institutions. While educators are impressed with this level of fiscal responsibility, they are quick to point out that each action above is a risk factor that makes college students less likely to graduate. Borrowing could prevent this, said Deborah Santiago, co-founder and vice president of Excelencia in Education. "If you can take out a little bit of loan you're more likely to complete. If you can go to a more selective institution that gives you more resources and support, you're more likely to complete." How much more likely? Federal data analyzed by Excelencia and the Institute for Higher Education Policy (IHEP) in 2008 shows roughly 86 percent of students who borrow for college are able to attend full-time compared to 70 percent of students who don't borrow and roughly 60 percent of full-time students receive a bachelor's degree within eight years compared to 25 percent of part-time students.

What can be done to facilitate this message? Educators believe students need to better understand financial aid, the difference between types of loans, debt management and the returns on various degrees and majors. In addition to searching for scholarships and grants, is borrowing part of your financial aid plan and does this information make you more or less likely to take out a loan?

While credit card debt, mortgage debt and auto loan debt have all steadily decreased since the fall of 2008, the same cannot be said for outstanding student loan debt, which has climbed 25 percent since the start of the financial crisis. Not only has student debt increased, but more often than not these loans aren’t getting paid off on time. The problem is that students take out sizable loans to pay for tuition to only be met with bleak prospects of employment after college. Those lucky enough to secure a job can also expect lower starting salaries: The median starting salary for a member of the class or 2009 or 2010 is $27,000, down from $30,000 just a couple of years ago.

The debt ceiling deal complicated things a step further by adding additional federal loan provisions. One section of the deal changed the way interest is collected on federal loans for graduate students, meaning that borrowers will start accruing interest on their loans before they’ve graduated. That being said, earning a college degree is still a significant advantage when entering the job market. The Labor Department released a report stating that for workers 25 and over with at least a bachelor's degree, the unemployment rate in July was 4.3 percent, compared with 8.3 percent for workers with "some college," and 9.3 percent for workers with just high school diplomas.

Soon-to-be college students, do you fear crippling student loan debt? What steps are you taking to prevent becoming a statistic?