If you need financial aid to attend college, you should make sure to choose a school that participates in federal student aid programs. These programs offer a wide variety of grants, scholarships and low-interests loans.

The first step in finding financial aid to help fund your college education is to fill out the Free Application for Federal Student Aid (FAFSA, http://www.fafsa.ed.gov). This application gathers information on the income of you and your parents, and based on those numbers, an Expected Family Contribution (EFC) is calculated and provided to you in a Student Aid Report (SAR). The EFC is how much you and your family will be expected to contribute to your education for the coming year. You must then give the SAR to the colleges you are interested in attending, and their financial aid department will create a payment plan for you based on your EFC.

The financial aid packages from your schools will most likely be combinations of grants and loans. Grants may come directly from the school, or you may be awarded a federal grant based on academic achievement. Loans are frequently from the Stafford, PLUS or Perkins federal programs. Some schools will offer more grant money than others depending on your academic achievement, and these are often the better financial choice.

What happens if you and your family will not actually be able to meet the EFC, as is often the case? You will have to turn to other sources, like private scholarships or loans with higher interest rates. Some state governments have educational loan programs for residents. Consult your high school guidance counselor and web sites like: FAFSA (Federal Student Aid)

Sources:
FAFSA
Federal Student Aid

One of the best ways to finance your college education is through grants. Unlike loans, grants won’t need to be repaid. Essentially, grants are free money for college, and are available through the federal government, state governments, colleges, and other institutions.

Federal Grants

To determine your eligibility for federal grants, you must fill out the Free Application for Federal Student Aid (FAFSA). Federal Pell Grants are usually the starting point for students in attaining grants. The maximum Pell Grant in 2008/09 was $4,731. Those with considerable financial need can qualify for the Federal Supplemental Educational Opportunity Grant (FSEOG), which awards between $100 and $4000 a year. Other federal grants include the Teacher Education Assistance for College and Higher Education Grant (TEACH Grant), the Academic Competitiveness Grant (ACG), and the National Science & Mathematics Access to Retain Talent Grant (National SMART Grant). Information about federal grants can be found on the Federal Student Aid website.

State Grants

Another way to finance your college education is through state-based grants. State grants include those for low-income families, minorities, and for students pursuing high-need fields, such as nursing and teaching. To learn what grants your state offers, see College Scholarships.org.

Individual College and Other Grants

Free money for college can also be found through individual colleges and other institutions. Colleges base grant eligibility on financial need and academic achievement. Some colleges offer grants to minority students and those with special needs. Other grants can be found through professional and local business organizations, such as the Chamber of Commerce and civil groups and clubs.

Sources:
College Scholarships.org: State-Based College Grants: An Essential Resource List
Federal Student Aid: Campus-Based Aid
Federal Student Aid: Funding Your Education
Federal Student Aid: Grants