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If you're the parent of a college-bound child, we trust you've already done a victory jig after that school acceptance letter thudded into your mailbox this spring. Now you're facing the prospect of hefty tuition bills this fall. Take heart: If your child is one of the estimated two-thirds of freshmen who didn't receive need-based financial aid--or if the school's proffered aid package doesn't go far enough--several low-cost federal and private loans can help ease your pain.

Apply for federal student loans first, because their interest rates can be as much as three percentage points lower than those on private loans. The two federal loans are:

--Unsubsidized Stafford Loans. Unlike subsidized Staffords, which are need-based, the unsubsidized variety is available to any student in school at least half time. Your child, not you, is the borrower. (It's a good idea for your child to borrow as much as possible before you do: Students get better loan terms than parents do, and you always have the option of assuming all or part of the repayments later.) John or Jane can borrow $2,625 to $5,500 annually; the maximum amount rises over four years of education. The variable interest rate, adjusted every July 1, equals the three-month Treasury bill rate plus 3.1 percentage points, with a cap of 8.25%. Now 8.25%, it is expected to drop to about 8.1% next month. There's also an origination fee of up to 4% of the amount borrowed. Interest starts accruing immediately, but students can defer payments until six months after graduation. They have as long as 30 years to repay.

Banks, credit unions and other private lenders make 64% of Stafford Loans; state or private agencies administer the loans and the federal government guarantees them. The other 36% are offered through colleges and universities that participate in the Federal Direct Student Loan Program, in which the lender is the Department of Education. You'll get the best deal from a private lender that sells its loans to Sallie Mae, which bundles them and resells them to investors (call 800-891-1409 for a list of participating lenders). That's because if your child makes the first 48 payments on time, Sallie Mae will knock two percentage points off the interest rate for the remaining installments. The agency will also lower the rate a quarter of a percentage point if your child authorizes the electronic transfer of money from his or her bank account.

--PLUS loans. With a PLUS (Parent Loans for Undergraduate Students), you can borrow all of your child's education costs, minus any other financial aid. If, for instance, your child has borrowed $3,000 under the Stafford program toward her total college costs of $8,000, you would qualify for a $5,000 PLUS loan. You can get such loans either through a bank or other private lender, or from the Federal Direct Student Loan Program at participating schools.

The government adjusts the interest rate on PLUS loans each year on July 1. The amount is pegged to the one-year Treasury bill rate plus 3.1 percentage points, with a 9% cap (recent rate: 8.98%). Lenders can charge as much as 4% of the loan amount as origination and insurance fees. You have five to 10 years to pay off the loan. Unlike Staffords, PLUS loans give no grace period for repayments.

The next most cost-effective option is likely a home-equity line of credit. Because you can deduct the interest on a home-equity loan of as much as $100,000 on your federal income tax return, the after-tax cost of such loans is just a notch above that of Staffords and PLUSes for people in the 28% bracket. Home-equity-loan rates averaged 9.65% recently, and some lenders offer rates as low as 5%. Tip: If you think you'll need to tap into multiple sources of cash before your child's four years of college are over, apply for a home-equity line of credit now. You'll qualify for a larger credit line when your monthly debt payments are low.

What about tapping your balances in a 401(k) retirement account or other company savings plan? Rates are low, typically prime plus one percentage point, and you are essentially paying the interest to yourself. Generally, you can withdraw as much as half of your vested balance or $50,000, whichever is less. But you must pay the money back within five years, and if you change jobs or get fired, you'll have to pay immediately. Another drawback: Taking a loan means slowing the growth of your retirement stash.

Next, turn to private-sector college loans. About 1,000 educational organizations offer them, acting either as direct lenders or as servicers who collect your payments. You can apply either through your child's college or the groups directly. These loans cover all or most college expenses, minus any financial aid that the student receives. At 8.25% to 11.5% or so, their rates are generally a bit higher than those on federal loans or home-equity loans, but they still beat those on the typical personal loan. Four of the best:

--Excel loans from Nellie Mae (800-634-9308). A parent can borrow from $2,000 up to the full cost of the child's education, minus financial aid. The rate is prime plus 0.5% for the first year, prime plus 1% thereafter (at current rates, that's 8.75% for the first year and 9.25% thereafter), plus a one-time guarantee fee of 7% of the loan amount. You can take as long as 20 years to repay.

--TERI Alternative Loans from the Education Resources Institute (800-255-8374), the largest private loan guarantor in the country. TERI will lend you up to the entire cost of your child's education, and you have up to 25 years to repay. The six banks that participate in the program set their own interest rates, which recently ranged from prime to 8.9%. Apply through your child's school.

--Extra Credit loans from the College Board (800-874-9390). These loans cover room, board, tuition and fees, minus financial aid, for up to four years. Interest rates are tied to the 90-day Treasury bill rate plus 4.5 percentage points--currently 9.3%. You can stretch repayments up to 15 years, but you can't defer repayment of principal until after the student graduates.

--Signature Education Loans from Sallie Mae (800-891-1409). These loans, new this year, let you borrow a maximum of $100,000 at the three-month T-bill rate plus 3.1 percentage points, adjusted quarterly. The application fee is a hefty 6%, but repayment doesn't begin until six months after graduation (interest accrues immediately). You have up to 15 years to repay. Apply through your child's college.

Reporter associate: Jillian Kasky