You may want to begin your search for cash with scholarships and grants, which cost you nothing and do not have to be repaid. It is important to note that if a student is awarded a grant or scholarship, the college will deduct that amount from the financial aid it would otherwise have given the student. 

• Scholarships - There are numerous scholarships available, try this search engine to get started or discuss resources with your financial aid office.
  
  
• Pell Grants - These constitute the largest of the government programs. Grants generally range between $400 and $3,125. In general, families showing financial need are eligible for grants, although families with higher incomes may also be eligible under special circumstances.
  
  
• Supplemental Education Opportunity Grants (SEOG) - For families exhibiting the greatest need, the SEOG offers grants ranging from $100 to $4,000 a year. SEOG funds are limited, so it is important to submit an application as early as possible.
  
  
• State Programs - Most states provide grants based on a combination of merit and financial need. Contact your child's high school guidance counselor or state office of grants to learn what types of aid may be available and how to apply.
  
  
• College Grants - Most institutions offer several kinds of grants based on need, scholastic achievement and/or talent in a special area. Some colleges give cash grants, while others offer tuition discounts.
  
  
• Private Grants - Thousands of grants and scholarship programs are available to students with superior academic records, special interests and other qualifying characteristics. Check with employers and local, state and national organizations with which you or any member of your family may be affiliated. The local library is also an excellent reference.

The federal government is by far the single largest source of financial aid to college students, but there are also state government loans, college-sponsored loans, commercial lending institutions and credit unions which also offer private student loans. Qualifying for funding involves filling out multiple forms and providing a detailed profile of your financial situation to potential lenders. As with all financial aid applications, it is important to fill out the forms completely and submit them as soon as possible. 

• Government Loans - Perkins Loans are designed for undergraduates and graduate students who have exceptional economic need. Perkins loans are extremely attractive because the interest rate is set at 5 percent. Repayment needn't begin until nine months after the student graduates, leaves school or drops below halftime status. Repayments can be stretched out over ten years, with payments of as little as $30 a month. Loan amounts range from $3000 per year for undergraduates, to $5000 per year for graduate students. 
  
  
• Stafford Student Loans (formerly Guaranteed Student Loans) are available to virtually all students. Students demonstrating financial need may qualify for subsidized loans, meaning the government will pay the interest on the loans while the student attends school, as well as for a 6-month grace period after graduation. If the loan is unsubsidized (not need-based), interest accrues while your child attends school and repayment must begin immediately after graduation. The typical repayment term is five to ten years. There are limits on the amounts you can borrow under the Stafford loan program.  Currently, dependent undergraduate students may borrow up to $5,500 per year as a freshman, $6,500 as a sophomore, and $7,500 per year as juniors and seniors.  For graduate students, the maximum is $20,500 per year.  Only a portion of these amounts can be borrowed as subsidized loans.  Consult your school for details.

(NOTE: An important thing to remember about both the Perkins and Stafford loans is that the students, not the parents, are the borrowers and are therefore responsible for paying back the money.) 

• Parent Loans to Undergraduate Students (PLUS) and Supplemental Loans for Students (SLS) PLUS loans are made to parents. SLS loans are made to undergraduate and graduate students, allowing borrowing up to $4,000 per year as freshman and sophomores, $5,000 per year as juniors and seniors, and $10,000 per year as graduate students. 
  
  However, combined PLUS loans, SLS loans and other financial aid cannot exceed the student's cost of attending school. Repayment of these loans must begin within 60 days of receiving the loan proceeds, and the loans can be repaid in five to ten years. Although repayment of SLS loans can be deferred while a student attends school, interest continues to accrue. 

(NOTE: Recent legislation will affect student loan programs in several ways. Many loans that formerly were processed through banks and other lending institutions are now granted directly through the Department of Education. In addition, thousands of students will be able to pay off their government loans through work in a National Service Corporation, such as AmeriCorps and the National Health Service Corps. Those entering this program could pay off as much as $5,000 worth of student loans for every year of service up to $10,000. For the latest information on all of the federal loan programs described here, call 800-4-FED-AID.)

College Work-Study Program (CWS)
The work-study program permits eligible students to work on campus to help offset educational expenses and reduce loan obligations. Students from higher-income families have a better chance of getting a part-time job under CWS than of getting most kinds of grants.  

Students will likely need more than one type of financial aid to fund a college education, but understanding the basics and filling out the Free Application for Federal Student Aid are great first steps. You should also take care in choosing lenders that offer the lowest rates and most flexible repayment terms, especially if you have a need for private loans in addition to federal aid.   
Source: Balance