You need money for college, but where do you start? And how do you make any sense of all those confusing financial aid terms, like FAFSA, EFC and SAR? Don't lose heart and don't give up before you even begin your money search. We're not only here to help move you in the right direction, but to also increase your chances for getting the best possible financial aid package. So read on.

If you're a freshman or sophomore reading this, now is the time to start thinking about cash for college. Dig around fastweb.com, looking into scholarship opportunities. Get involved in activities that will help you earn scholarships. Develop leadership or athletic skills and be proactive about community service. All of these activities could lead to scholarship dollars. Also, keep your grade point average up to increase your chances for academic scholarships. And make an appointment with your high school guidance counselor. Ask about scholarship information—both local and national. Ask for brochures, pamphlets or website names that will help you in your money search.

Then during your junior year, start contacting schools you're interested in. When contacting these schools, say something like this: "I'm thinking about going to your school. Please tell me about the types of aid you have and when I need to apply."

Get a realistic view of what an education costs. Turn to the Financial Aid Directory (p.58) and start checking out the "Total Cost" entry for a few schools—and realize that's for only one year. Multiply figures by four to get a rough estimate of what four years of tuition will cost. Then there is the cost of housing, books, transportation home and Friday night pizzas. But don't get too depressed. That's why you and your parents are looking for financial aid. And speaking of parents, be sure to talk to them early about the financial aid process. During your sophomore or junior year, you'll want to sit down with them to discuss how your family plans to pay for your education. Get an idea of about much they will spend and how much you will need to spend. Then get to work finding scholarships and saving money.

It's never too early to start visiting campuses. But by the spring before your senior year, you need to visit the three or four campuses you're most interested in. Sit down with a financial aid officer for a conversation about your possible financial aid options. Be sure your parents are there, too. Since the financial aid process can seem overwhelming, they can help guide you through it. Your parents will also have a good handle on your family's entire financial situation and can answer any questions the financial aid office might have. They'll also be able to ask questions you would probably not think to ask.

The fall of your senior year is a good time to start filling out applications. It's not like you're locking into the schools to which you apply. But applying early gets you into the system and on the school's mailing list. And the quicker you get into the system, the better shot you have at the school's limited funds. Because many schools have application fees (usually between $25 and $50), you'll want to be pretty sure this school is a solid option for you. Some schools do drop that fee if you apply early.

In early January of your senior year, you and your parents will want to fill out and submit the Free Application for Federal Student Aid (FAFSA). It's best to do this online at fafsa.ed.gov, but you can also get a paper copy of the FAFSA from your guidance office, from the college you're considering or from your local library. This is the form that makes it possible for you to be considered for state grants, federal grants or student loans.

You and your parents will need to include income information and tax information from the previous year, so be sure you and your parents complete your taxes at the earliest possible date. By the way, your family can estimate your tax and income info on your FAFSA. If you do this, you will need to submit the correct figures at a later date.

You'll also want to check with the schools you're applying to about any special aid forms they may require you to fill out. Yes, along with the FAFSA, many schools have special forms you'll need to complete in order to be considered for any aid available from that school.

To get all the aid you're eligible for, you will need to meet the schools' "priority deadlines." If you meet these deadlines, you have a better chance of getting more financial aid. If you don't, you could be out of luck because a school only has a limited amount of funds to give out. When the money's gone, it's gone. So don't miss those deadlines. Check with each school you're considering for a list of important financial aid deadlines.

When the FAFSA people receive your form, they will plug your income and tax numbers into a special formula that will determine how much the government feels you should be expected to pay. The amount is called Expected Family Contribution (EFC), and it's sent to you in a Student Aid Report (SAR). This report is also sent to schools you'd designated on your FAFSA.

The schools will then use the information on the SAR to determine your entire financial aid package, which explains the type and amount of aid you've been awarded. This aid could include a combination of grants, loans, scholarships and work study.

Just a quick note about the EFC: It's a figure the government comes up with, based on your family's financial resources. Now, whether your parents can really pay that much is another question. It's simply the number the government has come up with. If you tap into some non-federal sources of aid—outside scholarships, for instance—you and your parents may not pay the whole EFC.

Be careful. Loans should be your last resort. Loans and interest can really mount up to major debt that could take you years to repay. Nervous? That's OK. A little healthy fear when it comes to loans and debt is a good thing. Now, some good news: Student loans often have low interest rates and deferred payment options, meaning you can usually postpone payments until after you graduate from college. If your family chooses to take out loans, you must carefully figure out: 1) how much you need, 2) how much debt you feel you can handle, 3) how large a monthly payment you can afford to make after graduation, and 4) how many years you want to take to repay the loan.

As you and your parents think about borrowing money, you need to realize that college is a long-term financial benefit. A college grad makes an average of $500,000 more in the course of a lifetime than someone who doesn't have a degree. So, yes, the debt may well be worth it.

On the other hand, a college degree is no guarantee you'll make a lot of money. If you enter a low-paying profession, like missions work, you might make less money than someone in another career who only has a high school diploma.

But a college degree is about more than just earning potential. It's about making you a more well-rounded person, and that alone is a worthwhile investment. So our general advice: Apply for all the free money you can, earn money while in school, and conservatively borrow the rest.

Deciding whether or not to take out a student loan isn't easy. For you and your family to feel comfortable about your choice, talk to your pastor, youth pastor or a trusted family friend who's been through this. Ask that person to pray with you and for you. And look to God for guidance.

Before you do anything else, turn to our Countdown to College Cash checklist, and pay attention to the general guidelines for important deadlines. Pin this page to a bulletin board or hang it on the family fridge. Mark off each item you complete on the checklist. Also, check with your guidance counselor and the financial aid offices of your choice colleges about important financial aid deadlines. And don't forget that all-important FAFSA deadline. Place all deadlines in your calendar, daytimer or PDA. Don't miss any important deadlines.

As you and your parents jump into the process, keep a levelheaded perspective. Financial aid is important, but it's not the only thing to consider. Don't get excited about a school just because they offer you some big scholarships. If the school doesn't offer you anything but money, you're really not getting the best value for your investment. A decent aid package and a school that offers what you're looking for trumps the best aid package with a school that won't meet your educational, social and spiritual needs.

Most important: If God has led you to a particular school, and it doesn't appear you can afford that school, trust in the Lord to provide. If he wants you there, he already has a plan for you to get there.

Financial experts from the following schools offered input into this article: Olivet Nazarene University, Bourbonnais, Illinois; Calvary Bible College, Kansas City, Missouri; Dallas Baptist University, Dallas, Texas.

Copyright © 2006 by the author or Christianity Today International/Campus Life magazine.
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