Unless you’ve been living under a rock for the past couple of years, you should know that the economy is pretty bad. So whether your parents are helping you out or not, odds are you’ll have to take out a loan or two to pay for your Binghamton University education, and let’s not even talk about grad school.

However, while loans may be necessary in this economy, students need to be conscious of what their effects are.

Dennis Chavez, director of Binghamton University’s Financial Aid Office, suggests that students only borrow what is necessary.

“Clearly, students should attempt to minimize debt whenever possible and only borrow what they need,” Chavez said. “Borrowing for college, especially via the Direct Loan process that Binghamton uses is relatively easy. This is good news when students need the funds, but at times the easy process encourages students to make easy decisions that may not always be the best long-term decisions.”

By filling out the Free Application for Federal Student Aid (FASFA) forms, students check their eligibility for Federal Loans, either unsubsidized or subsidized.

An unsubsidized loan is not need based and interest begins on the loan as soon is it is accepted and applied to tuition costs, while subsidized loans are based on a student’s financial need and interest rates do not begin until six months after graduation.

Chavez advises that students should look at subsidized loans first if they have been offered.

“Subsidized loans (are) the best option because this loan does not incur interest while the student is in school,” he explained.

Students should also be sure to do research before taking out any other loan for school.

Erica Hill, a junior English major, admitted to not looking at every option before making her decision to take out loans from a private company.

“Once I realized I didn’t have enough money for school, I made a hasty decision to take out loans,” Hill said. “I followed the advice of a friend instead of doing my own research.”

If you’re not sure how much money you should borrow, Web sites such as finaid.org offers an undergraduate student loan adviser function which takes your projected starting salary based on your career, interest rates and the loan term, and gives a maximum amount of money you should take out for college.

However, the website reminds students that the amount is not a target and the less money borrowed, the better off they’ll be later.

Chavez suggests that students use loans as a last resort, but to remember how important an education is.

“Students should also understand that borrowing for college is not like borrowing for a car,” Chavez said. “A car will depreciate, as soon as it is driven off the lot. However, their college education will yield dividends over time.”