Regardless of which college a student chooses, higher education requires a major investment of time, energy, and money. By taking advantage of a variety of available resources, most students can bring the education that is right for them within reach. Many families find it is economically wise to spread costs out over a number of years by borrowing money for college. A significant amount of government money money, both federal and state, is available to students. Moverover, colleges themselves have expanded their own student aid efforts considerably.

In spite of rapidly increasing costs, most competitive colleges are still able to provide financial aid to all admitted students with demonstrated need. In addition, many colleges have developed ways to assist families who are not eligible for need-based assistance. These include an increasing number of merit scholarships as well as various forms of parental loans. There also are a number of organizations that give merit awards based on a student's academic record, talent, or special characteristics. Thus, regardless of your family's income, if you are academically qualified and knowledgeable about the many different sources of aid, you should be able to attend the college of your choice.

There are essentially four sources of funds you can use to pay for college:

1. Money from your parents.
2. Need-based scholarships or grants from federal and/or state programs, a college or outside organization.
3. Your own contribution from savings, loans and jobs.
4. Other forms of assistance unrelated to demonstrated financial need.

All of these are considered by the financial aid office, and the aid package given to a student after the parental contribution has been determined usually consists of a combination of scholarships, loans and campus work.

Parental Borrowing

Some families who are judged to have sufficient resources to be able to finance their children's college costs find that lack of cash at any moment prevents them from paying for college bills without difficulty. Other families prefer to use lesss current income by extending their payments over more than four years. In both instances, these families rely on borrowing to assist with college payments. Each year parental loans become a more important form of college financing. The Federal PLUS Program is designed to help both aid and non-aid families. It allows parents to pay their share of education costs by borrowing at a reasonable interest rate, with the backing of the federal government. These loans are available through both the Direct Loan program, administered at the college or university, and the Federal Family Education Loan Program, administered through banks and financial institutions.

Need-Based Scholarship or Grant Assistance

Need-based aid is primarily available from federal and state government and from colleges themselves. It is not necessary for a student to apply directly for a particular scholarship at a college, the financial aid office will match an eligible applicant with the appropriate find. The Federal Pell Grant is by far the largest single form of federal student assistance; an estimated 5.3 million students receive awards annually. Families with incomes of up to $45,000 may be eligible for grants up to $4310. By filing the FAFSA, you automatically apply for the Federal Pell Grant and the Federal Supplemental Educational Opportunity Grant. Students eligible for a Federal Pell Grant who complete a rigorous high school program (as defined by their state) may be eligible for an Academic Competitiveness Grant ($750 first year; $1300 second year). Federal Pell Grant students who major in science, math, and certain foreign languages and maintain a 3.0 GPA may be eligible for a SMART Grant ($4000 a year for up to 2 years).

The Student's Own Contribution

All undergraduates, not only those who apply for financial aid, can assume responsibility for meeting a portion of their college expenses by borrowing, working during the academic year and the summer and contributing a portion of their savings. Many private colleges require aid recipients to provide a "self-help" contribution before awarding grant and scholarship money because they believe students should pay a reasonable share of their own education costs.

Student Loans

Virtually every student will be able to borrow to help pay for college. Colleges administer three tyes of loans that are all backed by the federal government:

• The Direct Stafford Loan
• The Federal Family Education Loan Stafford Loan
• The Federal Perkins Loan

Students must demonstrate financial need to be eligible for the Federal Perkins Loan. While every student is eligible for the Stafford Loan programs, financial need must be demonstrated to have the interest on the loan subsidized by the federal government.

Summer Employment

All students, whether or not they are receiving financial aid, should plan to work during the summer months. Students may be expected to save from $800 to $1850 before their freshman year and $1500 to $2550 each summer while enrolled in college.

Term-Time Employment

Colleges have student employment offices that find jobs for students during the school year. Aid recipients on the Federal Work-Study Program receive priority in placement, but once they have been assisted, non-aid students are helped as well. Some jobs relate closely to academic interests; others should be viewed as a source of income rather than intellectual stimulation.

Student Savings

Students assets accumulated prior to starting college are available to help pay college bills. The need-analysis system expects 20 percent of each year's student savings to go toward college expenses. This source can often be quite substantial, particularly when families have accumulated large sums in the student's name(or in a trust fund with the student as the beneficiary).