Even though college may seem far off, the time to start planning and saving is now. Here are some helpful hints:

Learn the Lingo.

Not all financial aid is created equal. It comes in different forms.

Grants and scholarships: This is the most desirable kind of aid, as it doesn’t have to be paid back. A grant is a gift based on financial need, and scholarships are money given for different reasons such as excellent grades, choice of major, choice of college, artistic ability, leadership ability, athletic ability, gender, race, financial need, community involvement, and so on. Scholarships are available from a wide variety of places, whereas grants come from just three major sources:

• Institutional grants, which are from the university’s own funds. Private colleges and universities tend to offer the most in institutional grants.
  
  
• Private grants, given to the university by someone else, for example, a graduate of the university or a corporation.
  
  
• Government grants, provided by the state or federal government. Large state universities are more likely to be dependent on government grants. The neediest students are often given Pell Grants.
  
  
• Work-study programs: Although less desirable than grants—because they take away some of the time that could be spent studying—work-study programs do have their benefits. The person who helps pay the bills (the student) tends to take the investment more seriously. Keep the hours down, though, to 10 or fewer per week.
  
  
• Loans: Loans are the least desirable type of aid because—you guessed it—they have to be paid back, with interest. Before accepting a loan from your bank or the university, find out the terms of repayment. Federal loans are usually the cheapest and allow borrowers the longest time to pay them back. (And by the time payments are to begin, the student should be a graduate and able to take on at least partial responsibility for repaying those loans.)

Start Planning Now!

• For help planning for college, check out American Education Services

Calculate What Your College Costs Might Be.

• This is a good way to set your savings goal. Look at the College Board’s College Cost Calculator for more information.

Get Answers to Your Questions.

• Visit the Peterson’s financial aid website.

Have Other Questions?

• Ask the NACME Scholarship Source. Send e-mail to scholarships@nacme.org.

Looking for Financial Aid?

Check the College Board’s database of more than 2,000 scholarship grants.

For more information on financial aid, please take a look at The NACME Guide to Engineering Colleges.

Free Application for Federal Student Aid (FAFSA)

To apply for federal student financial aid, and for many state student aid programs, students must complete a Free Application for Federal Student Aid (FAFSA). The information provided on the FAFSA determines a student’s eligibility for federal and state financial aid. The application is free.