A Few Facts About Paying For College

(ARA) - Are you or your son or daughter heading to college this fall? Are you daunted by the costs and financing decisions? Ponder these facts:

* As reported by the U.S. Department of Education, more than 16.3 million students will be enrolled in colleges in 2006 in the United States - you’re not alone in making some tough financial decisions.

* During the 2005-2006 academic year, The College Board reports that the estimated average annual cost of attendance was $31,916 at a four-year private college, $15,566 at a four-year public college and $11,692 at a two-year college. As the saying goes, paying for college is like buying a car every year - the only decision is whether it’s new or used.

* Student loans have proved to play a key role in financing college and university students’ educations. The American Council on Education reported in its 2003-2004 survey findings that two-thirds of students, or their family members, currently depend on these loans to pay college expenses.

* Teen Research Unlimited states that teens spent $159 billion in 2005. When they leave for college, making good financial choices becomes even more important.

As noted by these statistics, handling finances is critical to college success. So how do college students find and manage the money? Here is the most important tip to make sound financial decisions when paying the bills: seek financial aid and good money management tools.

Simply put, financial aid is the money you can get for educational expenses. It’s designed to supplement the amount you and your family contribute. You’ll encounter four basic types of financial aid: grants, scholarships, work study and loans. Most students rely on federal programs for funding financial aid. To apply you must complete a form called the Free Application for Federal Student Aid, or FAFSA. If you want to take advantage of maximum federal funding for the fall semester, you must turn in the FAFSA as early as possible after January 1 of that school year.

Applications are available at high school guidance offices, the college the student plans to attend, or the U.S. Department of Education’s Web site at www.fafsa.ed.gov. One more thing - even if you think you won’t qualify for college financial aid, try anyway. You might be pleasantly surprised and receive financial aid.