For some people, paying for college is easy. I'm not one of those people, and chances are, neither are you. Getting a college degree is one of the biggest decisions you'll ever make. Paying for it is a close second. Universities can cost upwards of $40,000 a year: a hefty price tag. Fortunately, the government as well as private organizations are here to help you in your educational pursuits. The Federal Government has a program called FAFSA (Free Application for Federal Student Aid). The FAFSA process requires that both students and parents fill out a multi-page application. The process uses W-2 information as well as income tax returns to determine the financial eligibility of both you and your parents.

The first step in filling out the FAFSA is determining whether you are a dependent or an independent student. Students claiming dependency typically get less aid. If you can prove you're an independent student, while still having a very low income, the government will undoubtedly give you a copious amount of money for your education.

If you don't meet requirements for being independent, here are a few tips to getting more money as a dependent:

1. Make sure to file on time! The later you file the less funding there is available.
2. Before completing the form, transfer your assets over to your parents: car, stocks and bonds, etc. The government expects you to contribute a larger percentage of your assets to college than they expect of your parents.
3. If your parents want to go back to school, now is the time. The more family members who are in school, the greater your need and the more money you'll get. (But they pay tuition too!)
4. Stay full time, taking at least 12 credit hours per semester. It's harder for part-time students to receive aid.

Aside from FAFSA, there is another program called the CSS Profile. This non-government program is also used to determine your financial need. The school you attend pays this company to offer you institutional grants as well as private loans. The drawback is that the profile delves deeper into your financial background, so it may be more difficult to prove need. However, if you are fortunate enough to be unfortunate, then the CSS Profile could end up paying for your entire tuition.

Once your FAFSA has been processed and you've received an acceptance letter, you'll have options for various loans and grants you've been awarded. Now the decision must be made to accept or reject any or all of the loans and grants. Before you decide, there are a few things to take into consideration.

If you've received government grants, it is essentially free money. You never have to pay back a grant, so accept every single grant you can get your hands on!

The tricky part is the loans section. There are two primary types of loans: subsidized and unsubsidized. You do not have to start paying subsidized loans back while you are in school. Typically these loans don't accrue interest while you're in school, only after you graduate or drop below full-time status. Upon graduation, subsidized loans come due, but there is a grace period of about six months before payments begin. However, if you're in dire financial need, you can apply for a FORBEARANCE, which extends the grace period.

A large subsidized loan program through the government is the PLUS Loan, a loan for the parents of the student. The PLUS Loan is through the Direct Loan program and helps defray the cost to the student. This is one of the few benefits of being declared dependent.
Eligibility for the PLUS loan is need-based. In order to receive the loan, the government takes into consideration your parent's credit scores - if satisfactory, your parents may get a loan.

Unsubsidized loans are the absolute least desirable loans available. Typically interest is significantly higher than for a subsidized loan (up to 10 percent per year); the interest accrues while you are in school; and the loan payments start immediately upon completion of school with no grace period. Generally unsubsidized loans are seen as a less appealing alternative to grants and subsidized loans.

For more information on FAFSA you can go to their website at fafsa.ed.gov.