Financial Aid Package:
If the school you apply to decides that you have financial needs, you'll get a letter telling you about your financial aid package. This will basically list how much money the college and federal government can offer you to help pay for your education, and in what form. For example, the federal government might offer you $2,000 in an unsubsidized loan and $1,800 in work-study, while the college might offer you $3,000 in grant money.

Loans:
If your parents can't pay for the cost of college outright, chances are the subject of loans will come up. Loans are money that you receive and then pay back in smaller payments. The federal government offers all sorts of loans for educational purposes. There are different types of loans - PLUS Loans, Direct PLUS loans, Stafford Loans, etc. Look at the US Department of Education's website for specific info. and to find out which loan is right for you.

Subsidized vs. Unsubsidized Loans
The federal government gives out subsidized loans to students who are in financial need. This means that, unlike loans in the real world, subsidized loans do not gain interest while you aren't repaying it (as long as you're in school, that is). On the other hand, unsubsidized loans are awarded to any student (not necessarily a student who has financial need). With these loans, you ARE charged interest while you're in school. If you have an unsubsidized loan, you can "pay as you go," or let the interest build up and be added to the original amount of money you took out with the loan. What's important to remember? Subsidized loans are WAY better for your wallet!

Grants:
If you're offered a grant, TAKE IT! Grants are not like loans. They're basically like a scholarship - you never have to pay them back. Many colleges (especially private colleges) offer grants if you have financial needs. That means that they make your bill much smaller!

Scholarships:
Scholarships, like grants, do NOT have to be paid back. Many businesses, organizations, and colleges offer scholarships. You should look for scholarships that you can apply for, as they can be VERY helpful in paying for your college education. $1000 in scholarship money may seem like a drop in the bucket if you're facing total annual costs of up to $40,000 for an education at a private college, but it's really not. Imagine if you didn't apply for that scholarship, and you took out an extra $1000 in loans…that could add up fast! Every little bit helps, so apply for as many scholarships as you can!

Work-Study
If a college that you apply to offers you work-study, they are basically offering a job at which you can make money while attending school. The Federal Work-Study Program is very helpful to many students, as it gives students a way to earn some money. The money can go for anything, but you might put it toward personal expenses, books for classes, or transportation costs. And don't turn down work-study just because you don't want to work in the dining halls - usually only first-year students work in the dining halls, so it's a great way to meet people and make friends right away.