Paying for college can amount to a small fortune and the costs keep going up. Recent reports show that current college tuition & fees went up almost 6% from last year. New statistics from the College Board's Trends in College Pricing 2006 reveal that the average costs of a four-year private university is $22,218 annually, while that of a public four-year institution is up to $5,836.

A two-year public college increased to $2,272 per year. Remember, this is an AVERAGE; you will get sticker shock from hearing about college costs that can add up to more than $40,000 per year in tuition and fees!
But does the actual cost of college include everything? Here is a quick checklist.

The good news is that there is more financial aid out there than ever before; reportedly more than $100 billion that is available to worthy students. To know if you qualify all you have to do is apply. A financial aid award is broken down into three general areas.

Gift Aid means just that; you don't pay it back. This is usually awarded based on academic achievement or talent.

A Grant is based on financial need and your eligibility will depend on family income. This one must be paid back with interest after you graduate but not while you are in school.

The last category is Work Study in which you are given a job to pay for some of the costs of your education, such as books or course materials. The school's financial aid office finds you the jobs.

The process of applying for financial aid is pretty straightforward; it's based on a formula. Individual colleges have their own policies on student financial aid packages which are either need-based or merit-based.

Millions apply yearly but you should stay a step ahead and apply as early as possible. Once you receive the response you can start figuring out a budget and finding the money elsewhere if you don't get what you were expecting. You should start the process of exploring financial aid at the same time as you start your college application, months before your senior year begins.

Students can download the U.S Department of Education's free application for Federal Student Aid (FAFSA) to determine eligibility for the Pell Grant, among other awards. It is required by all state and most school assistance programs. You can complete the whole process online.

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