However, some online schools, such as Ashworth College, are offering students an alternative method to pay for higher education with the pay-as-you-go model. Officials said that because they can operate with low overhead as compared to traditional schools and can set tuition at a more reasonable price.

"What we offer is a significant advantage for our students," said Leslie Gargiulo, vice president of education for the school. "Students make monthly payments, usually under $50 a month, and have the peace of mind of knowing that a student loan payment will not be waiting for them after graduation."

According to the 2010 Sloan Survey of Online Learning, nearly 30 percent of all college and university students in the U.S. participate in at least one web-based course.

Well, there are lots of people out there who want to help. One of them is Tami Peter, a financial guru of sorts. She has the resume, which includes stints at Moody’s Analytics, SG Americas Securities and as treasurer on the board of Bottomless Closet, a New York City non-profit that helps women get back on their feet and get a job.

Tami has volunteered her time to Bottomless Closet since 2001, creating and teaching a monthly Personal Finance Series, which has grown to a 16-part program. Her goal, she said, is to make every woman in the series empowered to accomplish her financial goals, and through knowledge, action, and self-confidence ultimately achieve financial independence. Tami also created a Financial Mentoring program and Debt-Free Bootcamp for those challenged with heavy debt, which resulted in a decline in the attendees’ overall debt by 50 percent in six months.

Here is what Tami suggests for your financial New Year’s Resolutions:

• First of all, it is not out of the ordinary to feel overwhelmed when considering the necessary steps and the environment of the recession when thinking of our finances. Breathe, take a step back, and reevaluate a way to coordinate your finances.
• Create a Personal Net Worth statement. Make a list of the things you own: cars, accounts, investments and subtract the things you owe such as credit card debt, mortgage, etc. This number is your Personal Net Worth.
• Create a separate savings account you do not allow yourself to touch, except for in emergency situations. Set up direct deposit so that a portion is transferred over each pay period.
• Print your monthly checking account statement. Seeing all that we spend is a true eye-opener.  Categorize your spending. When doing this it is easy to see the money spent on frivolous items, things we don’t use, or how often we eat out, etc.
• From the previous step, create a realistic written budget.
• Create a list of everything you owe. Prioritize this list beginning with plans to pay off bills with the biggest balance and highest interest rates.
• Visit annualcreditreport.com to check that information is accurate and your finances are in order.
• Your employer offers retirement benefits for a reason, use them.
• If you can, avoid using your credit card. Consumers often forget they must pay back these debts in the future, then with interest rates and other expenses, our debt adds up.
• Sometimes it is necessary to get help, as spending money can become a psychological issue. It becomes a habit we get so used to and is often difficult to kick.
• Create an emergency fund. Most financial planners recommend a stock pile of six to eight months worth of income to cover a job loss or other emergency.

Once your finances are in order, much of the stress in our lives can more easily dissipate, Tami says.

Sound good to me! What’s your take?

That leaves the dreaded college loan. We’ve all heard horror stories about graduates having their credit permanently damaged as a result of not repaying their college loans in a timely manner. Or where balloon interest on a college loan inflates upon graduation, leaving the new graduate to start life so deep in debt, it will take decades just to make a dent.

While it is true that managing any debt requires a fair amount of responsibility and willingness to stay on top of the payments, college loans are not nearly as complicated, scary and financially crippling as they used to be. Basically college loans boil down to three categories: government student loans, parent loans, and private student loans.

Government Student Loans (GSL)

GSLs are funded by the federal government, have extremely low interest rates, don’t require credit checks, and offer a plethora of repayment plans. This is where it gets tricky, because if you defer repayment of your student loans until after you graduate you might become comfortably accustomed to a lifestyle and budget that does not include a monthly student loan payment. So (Surprise!) when the government one day comes knocking, expecting a payment, and you haven’t planned for that, well, things can get financially ugly very quickly.

Your repayment plan depends on which GSL you get. There are two; the Federal Stafford Loan and the Federal Perkins Loan. The Federal Stafford Loan has a fixed rate of 6.8% and repayment can be deferred until after you graduate. However, to help offset your debt upon graduation you can set up payment plans for as little as $25 per month while you’re still in school.

To qualify for the deferred payment option you must show need via your tax returns. Two thirds of Stafford loan recipients have a family adjusted gross income (AGI) of $50,000 per year. However, a smaller percentage of recipients have an AGI of up to $100,000. So unless you’re really rolling in the cash, it’s worth your while to look into a Stafford loan.

The Federal Perkins Loan is a little harder to get because it’s a smaller pool of funds and is awarded to students with extreme financial need. Also, Perkins loans are school-based, meaning the individual schools decide who should get assistance however, the loans are funded with government issued money. The interest rate is 5% fixed and the federal government absorbs all the interest while the student goes to school and up to 9 months after graduation. It’s the best deal around, if you qualify.

Parent Loans

If your parents still claim you as a dependent they can take out a Parent Loan for Undergraduate Students (PLUS) loan. In this case, your parents are on the hook for repayment, not you. Like the Stafford and Perkins loans, PLUS loans are government issued, but have an interest rate of 7.9% fixed. Repayment starts 60 days after the last of the loan has been issued (even if you’re still in school), and your parents can take up to 10 years to pay it off.

Private Student Loans

Private Student Loans (PSL) are also called bridge loans because they’re meant to bridge the gap between what the government will loan you to pay for college and what your college tuition actually costs. Unlike the loans mentioned above, PSLs are privately funded by lending institutions, banks, endowments, trusts, and wealthy individuals acting as private lenders. Because there is no safety net in case you default, your credit score pretty much determines if you’ll get a PSL. However, on the bright side there are no lengthy, federal forms to fill out. But because PSLs are privately funded interest rates and repayment plans vary.

Even though a PSL might be easier to obtain (depending on the lender) you should be very careful when you engage in one. To be safe it’s best to have a loan officer or even an attorney check over your lending contract before you take out a privately-funded student loan. Nothing worse than getting into a legal, financial squabble before you even graduate from college.

Now more than ever going back to school is a wise choice. Once the dust settles in this economic downturn wouldn’t you love to be poised to start a new career? That can happen if you take a little time to plan out your college tuition payment options. Depending on your school, major, and financial situation, a college loan may be just the ticket you need to put you on the path to a whole new career.