Loans do bring some risk. You're agreeing to (usually) 10 years of monthly payments once you graduate college

Grants and scholarships are more favorable than loans because they don't have to be repaid--they're free money.

In a work-study program, your child works for a certain number of hours per week (either on or off campus) to earn money for college expenses

Scholarships are a type of financial assistance that does not need to be repaid!

Financial Aid is a wonderful program that can help if you are having problems with the current cost of college. With the average tuition for a typical four-year private college jumped to $30,367 it is no surprise that one would need help no matter how well off you are. A financial aid program helps to supplement the cost of education and offers opportunities to those who would otherwise not have the means to further their education.

If you already started school don't think you are not eligible. Students who already receive aid may also qualify for additional funding to offset the extra costs sometimes associated with study abroad expenses, transportation, etc. Additional aid often comes in the form of student loans, although there are some need-based study abroad grants available annually. Check with your college for more information. Students who are returning to previously held work-study jobs who are not included in the priority group will be awarded work-study at their request.

If you work then you are advised to use your completed Federal income tax returns to your advantage. Not filing correctly and having to do corrections may cause a delay in the processing of application results but don't let that deter you from trying as the benefits far outweigh the inconvenience.

Remember that financial aid is available from federal, state, and even private resources. Four primary types of financial aid programs exist: grants, scholarships, loans and federal work-study. Financial aid is only to be applied for college and not things like car payments. Seems obvious but you will be surprised how much fraud is out there. Taxpayers provide this and it is put in place to make sure that everyone who desires a college education has the financial ability to pay for college expenses.

Financial aid is not intended to cover all of your expenses so one needs to budget appropriately. Primary financial responsibility belongs to you and your family (parents). Financial aid is based on the core principle that you and your parents have the primary responsibility for paying for your post-secondary education if you are a dependent student. These requirements explain why you may have to report your parent(s)' income. The amount of financial aid awarded to students is based on the cost of the program and to what extent of their ability one is able to contribute. A student's expected contribution is based on his or her available resources, which include savings, investments (stocks, bonds, annuities, and employee benefit plans), IRA accounts, trust funds, after-tax earnings for the student and his/her spouse.

Things to remember, financial aid is available to students who have been accepted for admission and whose families demonstrate the financial need. This Continued need must be demonstrated each year so if household income increases then you may not qualify. Financial Aid is available to assist students on an approved study away program so if studying abroad is your thing then go for it! Students attending a program not approved by The Office of National and International Studies are not eligible for financial aid assistance so always check your college for specific details. Financial aid is evaluated annually; one cannot, therefore, be guaranteed the same level of aid over the complete years of attendance.

Now how do you go about doing this? The first step to receiving financial aid is to fill out the free application for federal student aid. This is the agency that determines what the family contribution should be. The difference between the cost of attendance and expected contribution for a student, determines how much funds should be awarded based on need. There are some programs that are based on merit or are non-need based and can replace expected contributions from a family source.

If you apply early, then several funding sources for assistance can be considered. An eligible student with demonstrated need should not be denied the opportunity to attend college. Though the maze of financial aid can be intimidating, if it is taken on a step at a time it's as easy as drawing a line from A to B.

Begin by determining your eligibility to participate in federal, state and local financial aid assistance. Once you have determined that you are a good candidate for eligibility, apply for and receive your financial aid. After your initial application for Federal Student Aid, the remainder of the process should be completed at your prospective college or university. The Financial Aid office can be very helpful with this process.