Do you need to borrow to fund college education for yourself or your child? Be sure you take the Clark Smart approach to borrowing as detailed below.

Subsidized Stafford loans are the single best source of money you can borrow. The interest is picked up by taxpayers while you're in school. For the 2009-10 school year, subsidized Stafford loans will carry a fixed interest rate of 5.6%. The rate will be lower still at 4.5% next year, and all the way down to 3.4% the following year.

Freshman can borrow $3,500 annually; sophomores can borrow $4,500 each year; and juniors and seniors cap out at $5,500.

Once you exhaust your subsidized Stafford stockpile, you want to move on to unsubsidized Stafford loans, which are now at 6.8%. Remember, though, to borrow as little as possible because the interest on these unsubsidized loans will accumulate while you're in school.

As a third option, parents can take out PLUS loans, which are issued at a fixed rate of 8.25%.

Visit FAFSA.ed.gov to determine your eligibility for all these loan options.

One category of loans to avoid are private student loans. Back in 2005, the private student loan industry bought off enough politicians to gain the right to do any and all tactics short of causing you bodily harm in their efforts to collect on their money.

Private student loans typically can't even be dismissed in bankruptcy.

Finally, remember the consumer champ's rule of thumb when it comes to determining what level of borrowing you can comfortably handle: Do not take on loans that exceed the likely first-year earnings in your field.