St. Louis Post-Dispatch business columnists Jim Gallagher writes in Sunday’s edition that many college and trade school students are taking out pricey private student loans when they’re eligible for cheaper federal student loans.

Gallagher writes that federally backed student loans, called Stafford loans, charge 6.8 percent interest. Students who show financial need may qualify for a subsidized Stafford and pay no interest while in school, and only 5.6 percent later. The loans are guaranteed by Uncle Sam, so the lenders require no credit checks.

However, you can pay interest of 18 percent or higher for private student loans, which have variable rates. Still, Gallagher writes, the Project on Student Debt reported last week that nearly two thirds of students with private loans haven’t borrowed all they can in federal loans. Federal loans are limited to $5,500 per year for most freshmen and rise to $7,500 for seniors, while “independent” students can borrow more.

The report also shows that the number of students with private loans has grown from 5 percent in 2004 to 14 percent last year.

If you have a student in college or one preparing to go, click here to read the full story.