The class of 2008 is very busy right now thinking about the most important decision of their lives: who to ask to prom. The second most important decision of their lives is probably not getting any thought at all: where to go to college. Many high school students do not think about going to college, because they don’t think that they can afford it. That is far from true; the government is generous with financial assistance for students. The feds want educated people in society, and they put their money where their mouth is.

There are four main types of Financial Aid Programs available to students: grants, scholarships, loans, and federal work study. The differences between them are significant are should be considered when applying.

are Federal or State gift assistance with no obligation for work or repayment. Federal grants are specifically designed for lower-income undergraduate students to have the resources that they need to go to school. Grants are also available for post-baccalaureate students working on their higher degrees. This is the best-case scenario for students looking to finance their education; grants are free money.

are similar to grants, in that they are gift assistance with no obligation for work or repayment, but they come from private sources and there are requirements to be met, usually academic or athletic. Students who come from middle income families who cannot qualify for a grant should strive to obtain a scholarship to defray some or all of their education costs. There are as many scholarships as there are stars in the sky, and applying for them can be time consuming, but the reward is well worth it. For information on available scholarships and tips on how to apply, visit www.scholarshiphelp.org.

provide student with funds now, but with a future repayment obligation. Taking out student loans to finance an education is better than not going at all, but down the road can lead to a financial strain on a new grad looking to establish a career. Federal student loans do take this into consideration, however, and are structured to have small repayment requirements for several years after graduation.

is a program which allows students to attend school and work part time to pay their financial obligation. If a student does not wish to have large student loans after graduation, this may be a good option for them.

Financial aid can be uniquely packaged for each individual student, based on the combination of the different types of aid available. The combination of aid offered depends on the availability of funds, the student’s eligibility, the timeliness with which the application process is completed, and the level of education sought by the student.

Most colleges and universities have Financial Aid Offices to assist students and their families to search for, apply, receive and maintain eligibility for various types of financial aid.

Students can apply for federal grant and loan money by filling out a FAFSA (Free Application for Federal Student Aid). The earlier an application is received, the more resources will be available, so if there is a student in your life that needs financial aid to go to school, do not wait another day. You can mail your application, or you can complete it online at www.fafsa.ed.gov, and must be submitted no later than June 30, 2008.

State-funded grants are also available. Visit the Cal Grants website at www.calgrants.org for more information.

Federal Work Study

Loans

Scholarships

Grants