Finding the funds: financial-assistance options for college.

• Author: Johnson, Mike
• Position: Education

Getting a college education is money well spent. But where can you get the money to spend on getting that education?

Soaring costs make it essential that prospective students and their parents invest the time necessary to locate and take advantage of the numerous financial-aid opportunities available to pay for college, including scholarships, grants, Section 529 College Savings Plans and other programs. They must also complete and submit required federal forms, and follow the procedures and timelines for completing all other financial-aid applications.

According to the Indiana Career and Postsecondary Advancement Center, yearly tuition plus room-and board fees for such state colleges as Ball State, Purdue and Indiana can run $10,000 or more. Various additional fees, books and supplies add to the expense. At private schools costs tend to be even higher. According to The Wall Street Journal, the average cost of a private four year education grew 43 percent over the past decade.

"Families are aware of the costs of going to college, but they're not as prepared for finding sources of financial aid,' observes Jon Riester, assistant dean of financial aid and admissions at Hanover College.

Federal student loan programs are a well-known method for paying for a college education, but they can prove costly to the student. "I see more student loans taken out, and then students come out of college with a large debt," says Robert Sommers, director of financial aid at Indiana Wesleyan University in Marion.

"Costs keep growing, and you can't plan soon enough," says JoAnn Laugel, University of Evansville's director of financial aid. "Parents who went to college are better prepared, but it's still difficult and costly. You have to ask a lot of questions and do a lot of research."

To avoid saddling graduates with a long-term debt or placing a financial burden on parents, both students and parents should make financial preparations for college well in advance. They should also avoid basing their decision on what college to attend on cost. While state colleges have lower tuition, private colleges typically offer more financial aid, leveling the financial playing field.

"There is a great deal of disparity between the published costs and the real costs," says Steve Grissom, owner of College Bound Advising, an educational consulting firm based in South Bend. "The only cost that counts is how much you have to take out of your wallet to pay for school."

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