Sources of aid
Free money: It's a good idea to apply for as many scholarships for which you are eligible to help offset the cost of college. Your guidance office may have scholarship applications on file and may provide leads on other scholarship programs. Many colleges offer institutional aid, so inquire at the financial aid office of any colleges you are interested in attending. A good place to research additional gift aid sources is www.collegeanswer.com/scholarship, a free scholarship search site.
Federal aid: Most college students have federal aid in the following categories: subsidized or unsubsidized student loans, parent loans, grants, or Work-Study. Federal aid is awarded after a student submits the Free Application for Federal Student Aid (FAFSA). The earliest a current high school senior's FAFSA can be considered is January 2, and it requires the household's completed tax returns. For more on federal student aid programs, visit http://studentaid.ed.gov.
Private aid: There are many non-federal sources of education funds for students. The most common types are scholarships and private (alternative) loan programs.
Private student loans are available for students, parents, and student sponsors who meet certain eligibility requirements. Nellie Mae offers competitive private loan programs and helpful information about paying for college, and allows borrowers to finance up to the cost of attendance minus any other aid.
Points to remember
Whether you borrow money from the federal government or a private lender, student loans must be repaid! Become familiar with the terms of your loans and stay aware of the amount of education debt you accumulate. Defaulting on your student loans can ruin your credit and prevent you from getting a home, car, or job.
Beware of scams that offer fee-based scholarship searches. These companies prey on entering freshmen who can least afford their premiums. Instead, conduct your own research for scholarship opportunities by asking your guidance counselor, a parent's employer, or by searching the Internet.
The amount of financial aid out there can mislead some students into thinking that it is someone else's responsibility to pay for their education. Your parents and the government might provide financial help, but you might not get any form of financial assistance or "free ride." It is your responsibility to pay for college. Even your expected family contribution relies on student income.
Financial aid will not come to you: You must find the money you need to pay for school. With college tuition on a steady increase, the need for student aid has never been greater; fortunately, neither have the resources. Get more information from Nellie Mae about federal and private loans, download brochures and user interactive worksheets that will help you prepare for college.