Free money. How do you get it? According to the Online Education Database: “From a scholarship, fellowship, or grant.” With the average cost of college over $25,143, most of the population are in financial need.

Forthy five percent of kids have education loans averaging $18,363, and when the typical time is seven ears to pay off college loans, there is not a whole lot to look forward to post-graduation.

Despite the economy being in a rut, there are $50 billion grants and loans distributed each year. The question is how to get a hold of some of it. Maybe we should first ask:

Where is it coming from?

• U.S. Department of Education • Federal Aid

• State Funds • Institutional aid

• Private Sources

The types of loans:

• Grants • Merit Scholarships

• Athletic Scholarships • Low Interest Loans

• Federal Direct Loan • Family Education Loans

• Stafford Loans • Parent Loans

• Work Study Programs • Service Learning

Typically, low income families receive the most financial aid. If your family earns less than $25,000 a year, you are in this category. If your family earns about $25,000- $70,000 you can still receive good financial assistance, but you will be expected to pay a good chunk of your tuition.

If you are a part of the fifth of the population who receives more than $70,000, you wont get much aid.

Tip: Start Saving.

You can receive federal aid by completing your fafsa at www.fafsa.ed.gov. Local scholarship applications can be found in the guidance office. Most of the time these require essays and recommendations. In order to find private scholarships, most scholarship searches can be found in the websites below.

Links:

www.fastweb.com www.petersons.com

www.collegetoolkit.com www.collegeboard.com

www.zinch.com

www.fame.com (Maine High School Students only)