Borrowing money may be a fact of life for some people, but paying back more than you need to doesn't have to be. Fortunately, there is a lot you can do to obtain a loan at a good interest rate.

Overcoming the "We're not worthy complex":

• Shop around. Try banks, credit unions and trust companies. If you prefer one place, ask them to match the best offer from a competitor. If you or your family have frequently dealt with a particular bank in the past, ask for a preferred lending rate.

• Don't be intimidated by banks when you seek a loan. Remember that you are young, educated (and getting more so), and it is in a bank's best interest to establish a long-term business relationship with you. If you don't like their attitude, go elsewhere.

• Ask for an explanation of any unclear terms on your loan agreement.

• If you are turned down for a loan, find out why. It could be that your credit rating has an inaccuracy in it (a more common occurrence than you might think). Phone the local credit bureau for a copy of your credit record. It is everyone's right to receive this and it is free of charge once a year.

• Always negotiate the terms of your loan and try to get an interest rate lower than what the institution originally offers. The worst they can say is no, and a yes could save you a substantial amount of cash. Try asking for a quarter- to a half-percent lower than they first quote.

• Find out if you can pay down your loan ahead of time without penalty. This is particularly important if interest rates are starting to rise.

If you are given a loan, follow these repayment guidelines:

• Make payments on time! This will enhance your credit rating and improve your chances of getting future loans at a reasonable interest rate.

• If you find yourself with surplus money at any time during school, pay down your debts as soon as possible, starting with whichever loan charges the highest interest rate.

• Keep records of all payments made! Believe it or not, banks have made the occasional mistake.