Top dollars for black scholars: how to finance your educational choice

The headlines say it all: "Cost of College Tuition on the Rise" and "Battling the College Cost Crisis." These headlines and other factors can cause panic in college-bound students and their parents. A college education has been long viewed as the gateway to the American Dream, as important in today's society as was a high school diploma years ago. However, the cost of higher education has risen dramatically in recent years, causing prospective students to narrow educational choices because certain options are now priced out of their reach.

According to the College Board, students are expected to pay $112 to $1,190 more in tuition and fees than last year. Such an increase has forced some students to find other sources to help finance their education. Locating appropriate funding can make an expensive education more affordable for qualified students, according to financial aid experts and scholarship strategists. Financial aid also has increased, bringing the total amount available for students to a whopping $129 billion. Although the price of higher education will continue to climb, the cost can be lowered with proper knowledge of how to fund your education. Here are a few tips to guide you in the search for scholarship treasure:

DETERMINE COST OF ATTENDANCE

Knowing the total cost of an education can help students determine a general idea of their financial need. This cost includes the total amount needed to attend the college or university of your choice each academic year. When selecting these institutions, students must factor in that costs will differ between private and public schools, as well as in-state versus out-of-state schools. The cost of attendance typically includes direct bills, including tuition, fees and room and board. Tuition is the total cost of classes per credit hour and will vary depending on whether a student is full-time or part-time. Fees are other services such as health and insurance that will be provided by the university. Room and board consists of the cost of living on campus and the various meal plans at eat-in dining facilities. Students should then add up the indirect costs that also are associated with attending college, such as laundry, books, phone bills and gas. Parents should decide how much money, if any, can be contributed from the family. Determining this total cost will help highlight which funding options are at your disposal.

TYPES OF FUNDING

According to the U.S. Department of Education, there are four main types of financial aid-loans, grants, scholarships and work-study programs. Loans include low-interest, federally subsidized funding that must be repaid. Private loans may be obtained from a bank and from the school itself. Grants and scholarships are merit-based financial gifts that don't have to be repaid. Both can be federally funded, but may also come from private sources. Various scholarship programs seek students with needs that are unrelated to finance and may require students to maintain a specific academic level. Work-study is a federal program that offers part-time work to help students offset a variety of educational costs. Salary is the current federal minimum wage, and students are paid once monthly.

Keep in mind that there are "financial aid organizations" that are only out to get money from you. Any scholarship offer that guarantees money for college in exchange for a small fee is likely to be a scam. Victims of scholarship scams should contact the National Fraud Information Center at 1-800-876-7060.

On January 1, students should obtain and complete the Free Application For Federal Student Aid (FAFSA), provided by the government, and the College Scholarship Service Financial Aid profile. Next, call the Federal Student Financial Aid Information Center (800-4FED-AID) to make certain that the college you wish to attend is eligible to participate in federal student aid programs.

WHERE TO FIND FUNDING

Searching for funding for college can be a challenge, but not if you know where to look. Scholarship experts advise students to take a strategic approach to searching and applying for scholarships. Here are some tips:

* Register with a free online scholarship search at www.fastweb.com; and www.wire dscholar.com.

* Contact the financial aid administrator at each school in which you are interested to find out what scholarship and grant programs are available.

* Contact your state agency responsible for public elementary and secondary schools to get information on the Robert C. Byrd Honors Scholarship Program. Call 1-800-4-FEDAID for additional information.

* Contact your state higher education agency to get information about state aid, including aid from the State Student Incentive Grant (SSIG) Program, which is jointly funded by the individual states and the U.S. Department of Education.

* Consider community service. The AmeriCorps provides full-time educational awards in return for community service. Go to www.americorps.org for details.