An unusual approach is the "moral obligation" scholarship program in which students receive funds that carry a moral, but not a legal, repayment obligation. Since there is no legal obligation to repay the loan, the payments made to the college can be claimed as tax-deductible gifts by the former student. For example, the HELP program at Lafayette College makes loans to qualified parents up to $5,000 and will fully subsidize the interest while the student is enrolled, with repayment on the principal deferred until after graduation.

There are also cases where the school will allow a student to rise outside scholarship awards to replace the loan portion of a financial aid package. There are also special scholarships and loans at some schools earmarked for "middle income families." Another creative program at some schools rewards students for community service. These schools award scholarships or repay up to 100 percent of student loans for spending time in community service, tutoring, volunteer work, or teaching nonreaders to read. For example, The University of California at Berkeley rewards students by repaying their federal loans if they choose careers in public or community service after graduation.

Some banks, credit unions, investment firms and other organizations have created special educational loan programs with more favorable interest rates or ether features that make the loans more attractive. For example, the Alliance Education Loan Program at the Bank of Boston will lend money to credit worthy undergraduates attending accredited colleges and universities, The Consortium on Financing Higher Education, a group of 30 high cost, selective, primarily East Coast schools, has a supplemental loan program for parents (SHARE). Parents can borrow up to $20,000 per year and take up to 20 years to repay. The Massachusetts Education Loan Authority (MELA) lets students and parents borrow up to 100 percent of the costs for college at 43 different schools on a 15-year fixed interest rate basis.

Some states offer loans separate from government authorized loans. Alaska offers a very generous program after fulfillment of a two-year residency requirement. Minnesota and Maine both offer loan programs with interest rates tied into T-bill rates and the prime lending rate. Money for state loans is usually secured through tax-exempt bond issues or an authorized nonprofit state agency.

One of the most interesting programs being conducted at both state and national levels provides tuition aid to prospective teachers in return for services. These programs qualify for our free money status because they provide, "forgivable loans" as rewards for easing the teacher shortage crisis. The state of Florida is one example of many states that practically pay for students to go to teachers' colleges. The state agrees to forgive the student's loans if the student agrees to (each a certain number of years in Florida after graduation). Naturally, if the student doesn't go into teaching, the loan must be repaid.

The Paul Douglas Teacher Scholarship Program, while technically a scholarship program, awards outstanding high school graduates who want to pursue teaching careers. Students who graduate in the top 10 percent of their high school class are eligible for awards up to $5,000. The recipients are generally required to teach two years for each year scholarship assistance. Over 10,000 awards are given yearly in this state-administered program.

In addition to the loans described in the preceding sections, there are many other innovative aid programs, loan payment plans, and tuition payment packages available through individual schools. The only way a find out if one of these plans exists at your school, or possibly create new one for yourself, is to ask. All schools receive funds for student aid in one form or another. They are also in fierce competition with each other to keep their best and brightest students and continue to attract those kinds of students in the future. The more you ask about ways to help finance your education, the more you will find out about unusual venues and alternative possibilities that may be just what you need to get that degree.