Most students are aware of the benefits of attending college. According to a March 2007 U.S. Census Bureau press release, adults with advanced degrees earn four times more money than those with only a high school diploma. However, when pursuing a higher education, one of the determining factors is cost. Even though there is an incentive to attend college, the immediate costs seem far greater. In 2006-2007, according the College Board, the average cost to attend a four-year private college/university was $22,218, and the average cost to attend a four-year public university was $5,836--and tuition steadily increases. Some students believe that due to these increases a college education is unattainable, and hundreds of intelligent and productive individuals do not make the most of their potential.
The truth is that college can be affordable for many students when all options are explored.  

So how can you get your hands on free scholarship money?

First off, anyone can win --- from the prom queen to the computer geek. You'll find scholarshipsfor just about everything --- from knitting to ethics. All sorts of groups want to give away money. The Coca-Cola Scholars Foundation offers 250 high school seniors each year a share in $1.8 million. The key to finding these opportunities is conducting a broad search. Just remember that freemoney requires an investment in time. You have to fill out the numerous parts of scholarshipapplication, get involved in school or community activities, perform good deeds, and at least maintain decent grades. The whole idea is to pay it forward now, so you don't have to pay it back later.
Let’s talk about FINANCIAL AID. Financial aid consists of scholarships, grants and loans, and work-study. It’s a good thing to check with the financial-aid office at your chosen university to find out what it offers, which might depend on whether it's a public or private institution. Private institutions can draw from endowments, while public ones are often limited to traditional avenues of revenue like tuition.

Grants and Scholarships

The very best form of financial aid are Grants and scholarships because they are almost always tax-free. Grants and scholarships are awards that do not have to be paid back. The difference between a grant and a scholarship is that a grant is awarded and a scholarship is generally earned. Scholarships are almost always awarded based on some form of merit, whether it is academic, athletic or community service-oriented. Grant money can be obtained from the federal government, state government and the university, whereas scholarship money is generally from a private organization or the university itself.

Loans

Federal Stafford loans
Unsubsidized Stafford loans are available to all college students, regardless of financial need. Stafford loans carry a fixed rate of 6.8% and payment terms are more flexible than those for private loans. Interest on the loan will accrue while you are in college, but you can defer payments until you graduate.
There are limits to the amount you can borrow each year. The cutoff for freshmen who start college this fall is $3,500. Stafford loan limits haven't kept up with tuition inflation, which has led to the increase in private loans.

Work-Study

Federal work-study programs provide employment for students with financial need. This money can be used to help pay student living fees.

FAFSA – Free Application for Federal Student Aid
To qualify for federal financial aid, as well as state aid and grants from many colleges and universities, you must file a Free Application for Federal Student Aid, or FAFSA (www.fafsa.ed.gov/). FAFSA is the starting point for everything from merit awards to government-sponsored grants and loans, even affluent parents should fill it out. After you provide your financial information, you submit the form to the U.S. Department of Education, which calculates your expected family contribution (EFC) and reports it to the colleges you request. The colleges compare your EFC with the cost of attendance and close the gap with a mix of grants, loans and work-study.

Click it!

Using the online application not only eliminates snail-mail time delays but also flags clerical errors. Last year, those advantages persuaded 94% of families who filed a FAFSA to do so electronically. Allow a few days before filing to apply for a PIN, which lets you "sign" the FAFSA. In order to apply for the upcoming year, Web applications must be submitted by June 30, 2008.
When looking for scholarships, loans and grants, there are fakes out there who will try to get money from you. Anytime you are asked for money in order to get money, be skeptical. When a scholarship asks for money up-front, requires an application fee, or guarantees recipient will get scholarship money, don't trust it. Legitimate scholarships do not charge an application fee, and they also will not require you to give personal information, such as bank account numbers or your Social Security Number.
Some easy ways to protect yourself is to talk to a trusted source, like a college advisor or financial aid administrator; research the college, and trust your instincts. If you think it's a scam, it probably is.
If you believe you have been a victim of fraud, you can contact the National Fraud Center at 1-800-876-7060, or the Federal Trade Commission at 1-877-FTC-HELP.

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