Strange New Ways To Pay For College

Odd Ways To Pay For College
Over 300 graduating students from 19 area colleges and universities throw their mortarboards in the air on the steps of the Philadelphia Museum of Art in a ceremony to honor their accomplishments sponsored by Philadelphia Mayor Michael Nutter Friday, May 11, 2012 in Philadelphia. (AP Photo/Alex Brandon)
Over 300 graduating students from 19 area colleges and universities throw their mortarboards in the air on the steps of the Philadelphia Museum of Art in a ceremony to honor their accomplishments sponsored by Philadelphia Mayor Michael Nutter Friday, May 11, 2012 in Philadelphia. (AP Photo/Alex Brandon)

College-tuition bills at most schools are due in August, and parents are likely to borrow even more this year than last.

But parents might not borrow the way their parents did -- or even like their neighbors just a few years ago.

Federal student loans have long been the option preferred by most borrowers. But annual interest rates on many of these government loans range from 5% to 7.9% at a time when mortgages are going for around 3.5% or less.

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