You've probably got a ton of questions about financial aid and paying for college. We know. We've heard 'em. And we've found answers to many of the questions you and your parents are asking.

Paying for college seems overwhelming. Where do I start?

Start with your guidance counselor. He or she will have plenty of resources available to help you get started. If you're homeschooled, or if you go to a small private school with limited resources, take advantage of the services of a local public school guidance counselor.

Ask your guidance counselor about the two broad categories of financial aid—need-based and merit-based. Need-based aid is granted to students who would otherwise have trouble meeting college costs. Merit-based aid is based on a student's high school performance—academic and otherwise. Ask your counselor any questions you or your parents have about the differences between these two types of aid, and how you go about getting them.

Also, talk to someone in the financial aid office at one of the colleges you're considering. Take advantage of their wisdom. They'll be glad to help.

Familiarize yourself with financial aid terminology. Many of these terms are defined on page 54. As you talk to the experts, you'll have a better understanding of what they're talking about as they mention things like the FAFSA and Pell Grants and SEOGs. (Whew!)

There are tons of excellent books on the subject of financial aid. Here's one we'd recommend: College Money Handbook 2009 (Peterson's).

The federal government is a good source, too. Get a free copy of Funding Education Beyond High School: The Guide to Federal Student Aid by calling the Federal Student Aid Information Center at 1-800-4-FED-AID. It's also available online at studentaid.ed.gov/students/publications/student_guide/index.html

What's the difference between scholarships, grants and loans?

Scholarships and grants are gifts toward your college education; you don't have to pay them back. But you do have to pay back loans, usually with interest.

Scholarships are usually awarded for some special achievement or talent. Scholarships are also sometimes awarded based on a student's financial need.

Grants are usually awarded according to financial need only; earning a grant has nothing to do with your performance or skill in a certain area.

Sometimes scholarships and grants are referred to as "gift aid." Gift aid can come from many places—the federal government, state governments, the colleges and universities themselves, and tons of private sources, sometimes as close as your own church.

What's the FAFSA?

FAFSA is the Free Application for Federal Student Aid. But it's more than just an application for federal aid. It's an application for all types of aid—federal, state and college financial aid. This form gathers information about your family's income and financial situation—information the government uses to determine how much aid you're eligible for.

You'll want to pick up a FAFSA in the fall of your senior year. You can get a FAFSA from your guidance counselor's office, from one of the colleges you're considering, or by calling the Federal Student Aid Information Center at 1-800-4-FED-AID.

Another option is to file the FAFSA online. You can submit your FAFSA by going to fafsa.ed.gov. If you apply online, a built-in help service is available. You also can get help at ed.gov/help/landing.jhtml?src=gu or by calling 1-800-4-FED-AID. Filing electronically is the fastest, easiest way to apply. In fact, the Department of Education encourages this option.

Note: If you file electronically, you'll need to use a Personal Identification Number to sign your application. You and your parents can request this PIN at pin.ed.gov, and it serves as a legal signature for several Department of Education transactions. You can receive your PIN through the mail or by e-mail. A note of caution: There are several "dot.com" websites that charge families to complete the FAFSA. Don't go this route. Save money by filing your FAFSA through the government's services.

Fill out the FAFSA as soon as possible after January 1 of your senior year. You'll have to report financial information for both you and your parents, so you'll need your current tax returns and your Social Security Numbers. If you and/or your parents haven't filled out your tax returns by late January, go ahead and fill out the FAFSA anyway, estimating your answers. You'll be able to correct them later.

When you file the FAFSA, keep a copy of it, as well as copies of all tax and financial forms. You may need them later on.

You can list schools you're interested in attending on the FAFSA, and those schools will get the results of your FAFSA after it's been processed. You aren't required to list colleges on the FAFSA, but doing so speeds up the financial aid process.

About four weeks after mailing the FAFSA, or two weeks after filing online, you'll receive a Student Aid Report (SAR) from the government. The SAR will repeat the information you provided on the FAFSA. Check the SAR carefully for mistakes; this is your chance to correct them by sending in a response form. If you don't receive your SAR after four weeks, call the processing center at 1-800-4-FED-AID.

If the information you provided on the FAFSA was correct (that is, no estimates), your SAR will include your Expected Family Contribution (EFC). The EFC, determined by a formula established by law, is exactly what it implies: a dollar amount the federal government says you and your family will be expected to pay for your freshman year at college. Colleges use the EFC to determine the amount of your federal grant, loan or work-study, if you are eligible. Colleges also use this information to determine the makeup of your entire financial aid package.

What kinds of federal financial aid are available?

The federal government provides about 75 percent of the $45 billion in college financial aid awarded every year. Here's a look at the federal aid options:

• Federal Pell Grant. This is the largest grant program, with more than five million students receiving Pell Grants every year. Pell Grants are the starting points of assistance for lower-income families. The amount of a Pell Grant depends on your EFC, the cost of the college, and other factors. The maximum Pell Grant for 2007-08 was $4,310.

• Federal Supplemental Educational Opportunity Grant (SEOG). The SEOG provides additional money to especially needy students. The maximum is $4,000 per year, and the amount depends on the college's policy, the availability of SEOG funds, the total cost of education, and the amount of other aid awarded.

• Federal Work-Study. This program provides jobs for students who need help paying for college. The salary is paid by funds from the federal government and the college.

• Federal Perkins Loans. This is a low-interest (5 percent) loan for students with exceptional financial need. Perkins Loans are made through the college's financial aid office. Students may borrow up to $4,000 per year for up to five years. You can take up to ten years to repay the loan, beginning nine months after you graduate, leave school or drop below half-time status. A Perkins Loan does not accrue interest while you're in college.

• Federal Stafford Loans. These loans can be borrowed from two sources—either from the federal government through the Direct Loan Program, or from a commercial lender (bank, credit union) that participates in the Federal Family Education Loan Program. Interest rates vary, up to a maximum of 8.25 percent, and the 2008-09 rate is 4.21 percent. There are two types of Stafford Loans. With a subsidized loan, which is based on financial need, the government pays the interest while you're in college. With an unsubsidized loan, which is not based on need, you'll have to pay interest while you're in school. The maximum amount students who are still financially dependent on their parents may borrow is $3,500 for freshmen, $4,500 for sophomores, and $5,500 for juniors and seniors. You'll have to start paying back your Stafford Loan six months after you graduate, leave school or drop below half-time enrollment.

• Federal PLUS Loans. These loans are for your parents. Your parents don't have to demonstrate financial need to qualify for these loans, just a good credit history. Your parents can borrow up to the cost of your education, minus other financial aid received. Your parents must begin repaying PLUS Loans within 60 days, meaning they'll be paying off the loans while you're still in college. You can find current interest rates at studentaid.ed.gov in the Federal Student Aid Programs section.

Tell me more about work-study.

When you fill out the FAFSA, you're applying for all types of aid. Eventually, you'll receive a "financial aid package" (discussed later in this article), detailing the types of aid you've been awarded. One of those types might be Federal Work-Study.

In this program, students work on an hourly basis at on-campus jobs, getting paid at least the federal minimum wage—and no more than the amount noted in the financial aid package. You won't get the money you're awarded "up front." You must work for it, and you'll get a piece of it every pay period.

Don't be intimidated by the prospect of working a part-time job and making the adjustment to college life. Studies have shown that college students with part-time jobs earn better grades than those who don't work. One financial aid official told us he worked about 20 hours a week in college, adding, "I got the best grades I'd ever gotten because I didn't have time to goof around. A job can teach you a lot about responsibility—and the lessons carry over into other areas."

What's the Financial Aid PROFILE?

The PROFILE is used by many private colleges and universities to award their own private funds—money you can't get by filling out the FAFSA. The PROFILE is filled out in addition to the FAFSA. Ask the colleges you're considering if they take part in the PROFILE program, or if they have their own institutional forms to use instead of the PROFILE.

You can register for the PROFILE with the College Scholarship Service (CSS), a service of The College Board. CSS sends you an application, which you fill out and return to CSS, which forwards the information to the colleges of your choice.

To register for the PROFILE or get more information about the service, visit profileonline.collegeboard.com.

What's a "financial aid package"?

It's the combination of grants, loans, scholarships, work-study and possible discounts a college offers you. This package is detailed in a letter from the college, telling you what types of aid you're eligible to receive. The aid comes from a variety of sources—federal, state, college and/or private.

When you get your aid package, usually in the spring of your senior year, study it carefully. How much of it is "gift aid"? (Gift aid is money you won't have to earn or pay back.) How much of it is "self-help aid," in the form of loans or work-study? If there's a loan involved, what's the interest rate, when will you have to start paying it off, and how many years will it take to pay it off? If there's work-study involved, how many hours a week will you have to work? The package should include an explanation of all these details; if not, be sure to call the school's financial aid office and ask for more information.

What if the package doesn't provide as much financial aid as you had hoped? Most colleges are willing to talk to you and your parents about it, so feel free to call and ask. Let's say, for instance, that after you've filled out the FAFSA and other applications, your family's financial situation has been affected by job loss, divorce or unexpected medical expenses. These types of things may mean you can receive more aid. So it's important to let them know about anything that might affect your ability to pay for college.

But most often, the aid package represents the best offer the college can make; they're not going to "hold back" and make you beg for more. Still, it can't hurt to ask the financial aid officer if the college can possibly find a way to help even more.

How can I estimate the portion my parents and I will have to pay?

Once you get your financial aid package, you'd think it'd be easy to figure out how much is left. Just add up the cost of tuition, room and board, and any mandatory fees. Then subtract the total of the aid package, and you'll have to pay the difference, right?

Well, mostly right. Let's first talk about travel. This cost varies significantly from student to student. If you live on the West Coast and go to school in the East, you're probably looking at two or three round-trip plane tickets per year. If your college is just a hundred miles from home, your travel expenses will obviously be much less. If you're taking a car to school, you'll have to figure out those expenses as well. You probably won't drive around much on campus, but you might use your car for other reasons. Students at suburban colleges often drive the 10 to 20 miles to a nearby big city, or to the mall or movie theater. Those trips can add up. As for the cost of books and other personal expenses, I'd encourage you to check with the school's financial aid office for help in estimating these costs.

Check out the interactive calculator at petersons.com/finaid/financialcalculator/default.asp?sponsor=1 for help in planning your budget.

The thought of going into debt for college seems scary. Should I borrow? And if so, how long will I be in debt?

You need to think about college as a long-term financial benefit. Remember, 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 be well 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 the ministry or 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's a worthwhile investment in itself.

Fortunately, student loans have low interest rates and deferred payment options, meaning you can usually postpone payments until after you graduate from college. Students who decide to use loans must carefully figure out: 1) how much they need, 2) how much debt they feel they can handle, 3) how large a monthly payment they can afford to make when they graduate, and 4) how many years they want to take to repay the loan. One helpful tool that may help you make your decision is found at finaid.org/calculators/loanpayments.phtml. This calculator helps you estimate your monthly loan payments. Other financial aid calculators are available at finaid.org/calculators/.

One college's financial aid official gives this 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.

How can I find out what kind of scholarships are available to me?

Start with your guidance counselor. He or she will have a ton of resources—like books, CD-ROMs and websites. When you fill out the FAFSA and any other financial aid applications, you're already in the running for many scholarships—from federal and state governments, from the colleges themselves, and from some private sources. You'll find out if you were awarded any of them when you receive your financial aid package.

But there are thousands upon thousands of private scholarships available, often in your own backyard. Your own church, or at least the denomination to which your church belongs, might even offer scholarships. Local businesses, civic clubs, banks and other organizations often offer scholarships. And one or both of your parents' employers might offer a scholarship.

You've just got to start asking around, digging through books, searching online. And you'll certainly want to check out the article, "How to Win Money" on page 50, which offers insights from students who've been successful in the scholarship search.

When you do apply for scholarships, follow the rules and requirements. Be neat and thorough. Don't sell yourself short. And make sure you meet the deadlines.

Many students wonder if they should use a scholarship search service. With the amount of information available through your guidance counselor, the internet, your local library, and your local bookstore, you can do a ton of searching on your own. Scholarship search services are often accurate and legitimate, but they also often work with the same databases and resources that are available—for free—in your guidance counselor's office. So, think twice before spending money on something you can do for yourself for free. Financial aid offices often link to free online scholarship sources.

Hopefully, this article answers many of your questions about paying for college. As you take these steps and follow this advice, don't forget to continually consult the ultimate source for all of your needs—God. Prayerfully turn to him every step of the way.