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Here on this site, we’ll discuss everything about financial aid for college including -

Discovering what the financial aid process is all about

Learning what types of financial aid are available to you

Identifying scholarship assistance companies that make fraudulent claims

Financing education is not a pleasant topic. Most parents probably wish that it weren’t a consideration at all. Unfortunately, each year many students face limited choices because of the lack of financial planning for col­lege. In order to best prepare for the future, families need to understand what it costs to go to college and what financial aid is available to them. Financial aid makes up the difference between what a family can afford and what it will cost to send a son or daughter (or both!) to the college of their choice. The belief is that students who can’t afford the full cost of education should still have the chance to go. In the past, financial aid was synonymous with grants and scholarships, also known as “gift aid.” Today, education loans are the main source of financial aid. The recent shift in financial aid, from grants to loans, has raised much confusion and concern.

The Lowdown on Financial Aid

College graduates may be required to pay off the cost of their education for many years after graduation. Unfortunately, there doesn’t seem to be much hope for change in the near future. It isn’t just students who have been forced to borrow. Parents are also borrowing money to meet their share of the cost.

Where’s the Money Coming From?

Families trying to finance rising college costs have many questions. What about finan­cial aid? Is there money for everyone? If not, who will receive whatever assistance is available? If a family isn’t eligible for much financial aid, what kinds of planning will help meet the rising costs of higher education? As you can see, it’s important that families develop a financial plan for college costs.

More and more students are unable to attend the college of their choice because their families haven’t planned for financing their college costs. Perhaps you had the fore­sight to set up a special college education savings account when your kids were young.

Maybe you didn’t! Who else can help you pay college expenses? Fortunately, there are lots of other sources of education funds out there.

Uncle Sam’s Contribution

Uncle Sam is the largest source of need-based aid. Most of the aid is made available through the U.S. Department of Education. Since the federal government is the larg­est source of student aid, it pays to know all you can about its major programs. The Department of Education provides aid primarily through grant programs in which students are awarded “free” money to apply toward tuition or federally subsidized low-interest loans.

The Federal Aid Umbrella

In recent years, the federal government has increased the amount of available loan money but decreased the amount of money for grants. The need to increase spending on educational programs across the board is one of the few programs politicians of both parties can agree on. Since the sources of federal funds are constantly changing, get the latest copy of The Student’s Guide: Federal Financial Aid Programs by calling 1-800-4-FEDAID (1-800-433-3243). It’s free and lists all current federal financial aid programs. Also be aware that eligibility for various types of federal aid can change from year to year. Just because you didn’t qualify for a program last year doesn’t mean you won’t make the cut this year.