IT'S NO SECRET THAT HIGHER EDUCATION COSTS ARE ON THE rise. Over the last two decades, the price of attending two- and four-year public and private colleges has grown more rapidly than inflation and family income. In fact, last year the average tuition and fees for four-year public colleges rose nearly three times faster than the national inflation rate.

Consequently, students of all economic levels are borrowing money to help finance their education. According to a report issued by the National Center for Public Policy and Higher Education, only 17% of the highest-income families borrowed for college in 1990, but that figure increased to 45% by 2000. In addition, the U.S. Department of Education reported the average amount of debt incurred by a public college graduate totaled $16,243 in 2000; those who attended private colleges incurred $17,613 in debt. For those who pursue graduate degrees, "Upwards of $100,000 [of debt] is very common, which is very scary," says Erica Sandberg, chief financial writer and media relations manager for Consumer Credit Counseling Service in San Francisco.

As grim as such figures are, there is some good news for student borrowers. Statistics show that more education still leads to higher salaries, and the College Board estimates that over a lifetime, those with a B.A. or higher earn over $1 million more than those with a high-school diploma.