College tuition costs continue to rise, outstripping the rate of inflation year in and year out. Add in room and board, fees, books, labs and related expenses and the annual cost of a private school education can easily top $30,000 even pushing up closer to $50,000 at select elite schools, far beyond what most families can afford.

The good news is that just like buying a car, the listed price isn’t what you’ll end up paying, particularly if you cannot afford the school. As automakers discount their products, most schools do the same even if they have many more applicants to choose from should you decide to go elsewhere.

But, before you decide to throw up your hands in disgust and consider Plan B, make sure that Plan A has been exhausted. Specifically, you’ll want to do the following:

Fill Out Your FAFSA – The Free Application For Student Aid (FAFSA) form should be filled out by all prospective and current college students to determine whether you’re eligible for student aid. This form is sent to the federal government which issues a Student Aid Report (SAR) which is sent to your college. The SAR will have your Expected Family Contribution (EFC) featured, an amount that can be much smaller than what the going rate is for college.

Get Merit Aid – Families who have too much money to qualify for student aid can still get assistance especially if your student is a high achiever and has a promising academic track record. Top grades means you have much academic potential – some schools recognize ability as an important reason to extend assistance.

Grants, Not Loans – When seeking assistance, you’ll want to get as much grant money as possible (which doesn’t have to be repaid) instead of relying upon loans (which can strap your student down financially for many years). Some colleges and universities are no-loan schools who offer grants to eligible families. This list includes select elite schools including most Ivy schools and private institutions such as Swarthmore and Amherst.

Think Diversity – If you are of an ethnic minority or of an under represented gender, you may find that you could be eligible for aid (or a better aid package) simply for being who you are. Colleges value diversity and will do whatever it takes to populate their student body with as diverse a group of people as possible.

Instead of worrying about how you will pay for college, consider the many ways you can get lop off thousands from the sticker price. Don’t forget to apply for scholarships which can be another way to get the money you need to pay for your education – more than seven billion dollars of college scholarship money is made available each year: get your share and reap the educational rewards!

Tags: college grants, college scholarships, college tuition, FAFSA, Free Application For Student Aid, merit aid, Student Loans

Applying for financial aid should be something that every student does, no matter what their family’s ability to pay for college might be. Even affluent families can find shelling out $45-50,000 or more annually for tuition and related expenses to be quite a hit, especially if no aid is forthcoming.

These days students are not only encouraged, but expected to apply for financial aid, given the high cost of college education and the myriad number of ways in which aid is awarded. So, to get started we’ve outlined seven steps that prospective students should take to get the financial aid train rolling down the track:

1. Apply to School – Financial aid cannot be awarded until you apply and are accepted to a college in the first place. Only when you are fully accepted (not provisionally) will you be able to complete the steps which follow.

2. Apply for Financial Aid — Your Free Application for Federal Student Aid (FAFSA) will determine financial aid eligibility, but before you can apply you must first obtain a personal identification number (PIN) from www.pin.ed.gov. Both the student and one parent must have a PIN in order to complete the FAFSA.

Your PIN is important, something that you will need throughout the financial aid process. In addition, you’ll want to make sure that you follow all signature requirements which can delay your application if signatures are not completed. You’ll be filling out a pre-application worksheet before you submit your FAFSA.

3. Submit the FAFSA – Visit http://www.fafsa.ed.gov/ and submit your FAFSA. Double check your federal tax forms before applying. Make certain that you enter the school’s correct Title IV institutional code onto the form, otherwise you could delay your application.

4. Receive your SAR – About one month after submitting your FAFSA, you’ll receive a Student Aid Report (SAR) from the U.S. Department of Education. Review your SAR for accuracy; follow the instructions on how to make changes if mistakes are found. Your school will receive a copy of your SAR about the same time as you receive your information.

5. Obtain Your Financial Award Letter – Your college will review your SAR and send to you a financial award letter which will outline your complete financial aid package.

6. Apply For Stafford Loan – If your financial aid package sufficiently provides what you need to pay for college, then you’re all set. Otherwise, if you fall short, you can apply for a federal Stafford loan, a type of student loan managed by the federal government. Visit http://www.hesaa.org/index.php?page=apply-now-for-federal-stafford-and-plus-loans to apply today. Also, consider various private student loan options to help you pay for college.

7. Set Up A Loan Entrance Review – Before starting school, your college will contact you to set up an appointment to review loan documentation. This conversation will discuss funds awarded, distribution, and review of other financing options you may want to consider.

Financial aid can spell the difference between attending college or going without a degree, therefore applying for assistance is critical to help you learn how much of your college costs will be covered by your school as well as discovering what your personal share of these costs will be.

Tags: College Financial Aid, college tuition, FAFSA, financial aid