Most aid programs are open to all students who need them -- not just full-time, four-year scholars. If you're pursuing a degree or certificate, check with your college, your employer and the local library to find out what financial aid might be available to you.

However, remember that some aid is limited to full-time students.

• How Do I Apply for Financial Aid?
• How Do I Calculate My Need?
• Am I Getting a Good Deal?
• Where Do I Look for Scholarships?

How Do I Apply?

The first step is filling out the Free Application for Federal Student Aid (FAFSA). These forms are available from any college or university financial aid office, or by calling 1-800-4FEDAID.

You can also fill out the FAFSA online.

The financial aid you are offered is based roughly on your financial need -- or the difference between a college's costs and the amount you can reasonably be expected to pay. Many schools also ask you to complete a separate college financial aid application -- so be sure to ask about the requirements of each school that interests you.

TIP: Completed 1040s make filling out the FAFSA easier. However, it's not essential that your 1040 be completed. You are allowed to use estimates on the FAFSA. But if you use estimated information, you will be asked to verify it later.

There are three basic kinds of need-based aid:

Grants are gifts that do not have to be paid back. Federal grant programs include the Federal Pell Grant and the Federal Supplemental Educational Opportunity Grant.

Loans are borrowed money that has to be paid back over a period of time, usually after the student leaves school. Federal loans include Federal Perkins Loans, and loans made under the Federal Family Education Loan Program (FFELP). FFELP loans are obtained from financial institutions such as banks and credit unions, and include Federal Stafford Loans (subsidized and unsubsidized), and Federal PLUS Loans.

Work-study is money you must earn by working at a part-time job. Funds for the major portion of wages students earn on work-study jobs come from the Federal Work-Study Program.

Adults shouldn't discount work-study programs.

"That's who staffs the college," says Marylee King, director of student services at Marylhurst College.

University of Minnesota
Financial Aid FAQ

College Board Online
Student Loan Calculator

George Mason University
Common Errors Made When Applying for Financial Aid

How Do I Calculate My Need?

When you apply for federal student aid, the information you report is used in a formula established by Congress. The formula determines your Expected Family Contribution (EFC) -- an amount you and your family are expected to contribute toward your education. If your EFC is below a certain amount, you'll be eligible for a Federal Pell Grant -- assuming you meet all other eligibility requirements.

You can check out several online EFC calculators to estimate what your expected contribution might be.

College Board Online
Expected Family Contribution

National Association of Financial Aid Administrators
Financial Aid Estimation Form

Am I Getting a Good Deal?

All colleges use the same guidelines to determine your ability to pay -- but each college has its own policy on how much grant aid it provides. Be sure to shop around, and inform the school of any mitigating circumstances that may hamper your ability to pay.

As you apply, you have the right to receive the following information from the school:

• The financial assistance that is available, including information on all federal, state, local, private, and institutional financial aid programs.
• The procedures and deadlines for submitting applications for each available financial aid program.
• How a school selects financial aid recipients.
• How the school determines your financial need.
• How the school determines each type and amount of assistance in your financial aid package.
• How and when you'll receive your aid.
• How the school determines whether you're making satisfactory academic progress, and what happens if you're not. Whether you continue to receive federal financial aid depends, in part, on whether you make satisfactory academic progress.
• If you're offered a Federal Work-Study job, what the job is, what hours you must work, what your duties will be, what the rate of pay will be, and how and when you'll be paid.
• The location, hours, and counseling procedures of the school's financial aid office.

Once you have a few different offers, there are several factors to compare. The U.S. Department of Education offers several ways to compare your options.

Where Do I Look for Scholarships?

Information on merit-based aid can be difficult to get -- and even more difficult to wade through -- but it pays to dig deep, be careful and be persistent.

Take the first step. Contact the schools to which you're applying for information on any merit-based aid available to prospective students. Then visit your public library, and scope out reference books with information on the many scholarships available from both public and private sources.

In addition, some colleges and libraries have computerized scholarship listings that help students identify potential aid sources.

Online databases also are a good start.

Start with your employer. Many companies will pay some or all of the cost of continuing education.

Go to the library. "I often direct people to references available at the public library," says Joanne DeMay, Associate Director of Continuing Education at Linfield College.

Financial-aid guides, like Peterson's, can be helpful. "And there is one [aid guide] specifically for students returning to school," says DeMay.

Check with local community organizations. Social service organizations or occupation-related groups you may be involved with could offer scholarships.

Look at sources that help a specific group of people. The Japanese American Citizens League, Lutheran Brotherhood, the American Architectural Foundation, and the American Association of University Women are just a few of the many organizations that help students in their interest group get aid.

National Association of Financial Aid Administrators
Scholarship and Fellowship Databases

Additional Resources:

Internal Revenue Service
IRS Offers Tax Credit for Education

U.S. Department of Education
The 2000-01 Student's Guide to Financial Aid

University of Wisconsin/Stevens Point
Financial Aid IQ Test

College Board Online
Questions & Answers: Financial Aid

With information from the College Board Online, the U.S. Department of Education, National Association of Financial Aid Administrators and the Indiana Career and Postsecondary Advancement Center .

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