Preparing to attend a new school can be an exciting and hectic time. Add “How am I going to pay for it all?” into the equation, and it can seem a bit overwhelming.

Don’t worry; this crash course in financial aid will teach you all your options when it comes to paying for a four-year school (and show you that it’s not as hard as you may think).

Fill out the FAFSA
Before you look any further, fill out the Free Application for Federal Student Aid (FAFSA). Financial aid officers use this form to determine the amount of your financial aid award. You can get a paper FAFSA at your two-year school’s financial-aid office, or fill it out online at www.fafsa.ed.gov. Even if you completed a FAFSA last year, you must submit again every year you’re in college to qualify for federal aid.

Know your free options
Once you’ve completed the FAFSA, you should start researching potential scholarships and grant money, known as gift aid. One of the great things about gift aid is that you don’t have to pay it back! Exhaust all forms of gift aid before considering any federal or private student loans.

Don’t discount your ability to qualify for scholarships just because you’re not valedictorian or a star athlete. While some are based on academic or athletic performance, there are tons of scholarships out there for everything from your ethnic background to your hobbies. You can find free aid if you devote time and a bit of organization to your search. Many four-year colleges also offer scholarships specifically to transfer students. See the scholarship listing in this magazine to start your search.

CollegeAnswer.com and FastWeb.com are two good online jumping-off points for finding financial aid. Also check with your employer, local foundations, civic groups and community organizations for scholarship opportunities.

Learn about loans
If you find that you still need money once you’ve exhausted all sources of gift aid, consider your loan options, such as the federal Stafford and the PLUS (Parent Loan for Undergraduate Students) loans.

Stafford loans come in two forms: subsidized and unsubsidized. You don’t have to pay interest on subsidized Stafford loans while you’re in school and for six months after you leave school or drop below half-time enrollment.

Interest accrues on unsubsidized Stafford loans from the date of your first loan disbursement.

Your aid package from your new school will most likely include a combination of subsidized and unsubsidized loans. There are limits to how much you can borrow according to your year in school, so check with your financial aid counselor for the specifics.

PLUS loans are federally sponsored loans for parents. Unlike Stafford loans, there isn’t a loan limit. Your parents can borrow up to the full cost of your education. However, your parents will have to start paying back this loan within 60 days of the last time they receive a payment.

An important thing to note about Stafford and PLUS loans is that the new interest rates are the lowest in the history of the student-loan program. If you or your parents are considering dipping into retirement funds or charging tuition and other expenses to credit cards, the low interest rates may make taking out a federal loan a better option.

If you still need more money for school, consider a private lender that offers loans specifically for students. Some lenders offer repayment discounts for paying on time, consolidation options or special repayment plans, so be sure to research various lenders and weigh your choices carefully.

By planning ahead, knowing your options and investing a bit of time, finding free aid and additional funding through student loans is totally within your reach. And remember: Even if you didn’t get financial aid in the past, keep looking! A four-year college education is worth every penny.

YOUR FINANCIAL AID TO-DO LIST
Did you know that your financial aid will not automatically transfer with you when you go to a different school? By following this simple checklist, you’ll ensure that your financial aid will be waiting for you when you arrive on your new campus.

At your current school
Meet with your financial-aid counselors to:
Let them know you are transferring.
Get information about your current aid.
Request that your financial aid transcript be sent to your new school.

Meet with your academic advisor to:
Ensure you’ve met all transfer requirements.
Request that an academic transcript be  sent to your new school.

At your new school
Complete the FAFSA with your new school information. Even if you completed a FAFSA last year, you must submit a renewal FAFSA every year you want to be eligible for federal financial aid.

Contact your financial-aid counselor to ask about scholarships, grants and work-study programs.

Request a calendar of financial-aid deadlines and important dates, including when you can expect to receive your award letter and the subsequent follow-up deadline.

Apply for student loans even if you have previous loans.
Request a deferment form from your lender/servicer to update any previous loans you may have with your new school information.

This important step ensures that your lender knows you’re still in school. 

Have the financial-aid office at your new school certify your enrollment and forward the deferment form to your loan holders so they can update their records.

Audrey Rutherford is the marketing communications specialist for Education First, the exclusive marketing representative for federal education loans made by JPMorgan Chase Bank.