It would be nice if there really were people giving away free money, but with the number of options available for receiving financial aid a college education may be closer than you think. Even if you don’t think you’re eligible for financial aid, the numbers may surprise you. According to a 2005 study by the U.S. Department of Education:

• 69 percent of all undergraduates enrolled in public four-year institutions in 2003 – 04 received some type of financial aid.

• 83 percent of all undergraduates attending private not-for-profit four-year institutions received some type of financial aid in 2003 – 04.

• 89 percent of all undergraduates enrolled in private for-profit institutions received some type of financial aid in 2003 – 04.

So how do you go about applying for financial assistance?

The U.S. Department of Education devotes millions of dollars each year to helping students afford college, and state and local governments, colleges and universities, private companies, professional organizations and others add many millions more. But before you can get your hands on any of it, you’ll need to fill out the FAFSA (Free Application for Federal Student Aid) form. This is the first step in receiving aid, and you can submit the 2008 – 2009 FAFSA on the Web by midnight on March 10, 2008.

After the Federal Student Aid Information Center processes your FAFSA, you’ll receive a Student Aid Report (SAR). This document summarizes the information from your FAFSA and helps schools determine what kind of aid you're eligible to receive. If you don't hear back within four weeks of filing the FAFSA, call 1-800-4-FED-AID. Have your social security number and date of birth available for verification.

Remember that nearly every student, regardless of age or income level, is eligible for some sort of assistance. Most financial aid typically comes from one of these sources:

• Grants: Grants such as the Pell Grant and the Federal Supplemental Educational Opportunity Grant (FSEOG) award aid to college students based solely on financial need. Best of all, grants aren't loans so they don’t have to be paid back.

• Subsidized Loans: Federal loans, such as the Federal Family Education Loans and Direct Loans, offer low interest rates and forgiving payment schedules. Plus, parents can leverage additional money to help pay for their children's education through the Parent Loans for Undergraduate Students (PLUS) program, which also offers low interest rates.

• Scholarships: There are thousands of scholarships available, you just need to know where to look. Colleges, non-profit organizations, community groups, corporations and more offer scholarships. And like grant money, scholarship money also doesn’t have to be paid back. Look below for some outstanding online and print resources for finding scholarships.

• Alternative Loans: If your needs aren't fully met by federal programs or scholarships, commercial banks can provide additional assistance. This type of assistance is readily available, but frequently comes with higher interest rates.

For a head start on finding out what you can expect in terms of dollars, check out the free financial aid estimator from FinAid! This calculator helps determine your Expected Family Contribution (EFC) and financial need, and estimates your potential financial aid.

Scholarship Resources – Online

BrokeScholar.com
CollegeBoard.com
CollegeNET's Mach 25 Database
FastWeb
FedMoney.org
FinAid
Sallie Mae's College Answer
Scholarship Resource Network Express
Scholarships.com
School Soup
SuperCollege.com

Scholarship Resources – Print

Kaplan's Scholarships - Billions of Dollars in Free Money for College, 2007 Edition
CollegeBoard's 2007 Scholarship Handbook
Reference Service Press Funding - offers a number of specific financial aid directories, which are offered for purchase through this site.

Also, be sure to have a look at the following sites to get the lowdown on scholarship scams:

Federal Student Aid
Federal Trade Commission
National Association of Student Financial Aid Administrators