Solve the most common myths about financing your education after high school.

Myth: My family's income is too high to qualify for financial aid. The only way to know for sure is to fill out the Free Application for Federal Student Aid (FAFSA).

The federal government has a formula that considers a number of factors—including number of college-age children, income, and children’s assets—to determine the amount a family is expected to contribute to a child’s college costs. Any costs above that can be covered by financial aid or low-interest government or private loans.

One more reason to fill out the FAFSA: Some schools will not consider applicants for college grants and scholarships if they have not applied for federal aid.

Myth: My parents saved for my college education, so we won’t get any aid. Not necessarily. The federal formula provides allowances for savings and assets. You are not expected to sacrifice your home equity or retirement savings to pay for your child’s education. Only a small percentage of parental assets are expected to be contributed for education.

Myth: My sister wasn’t eligible for financial aid last year, so this year I won’t be eligible either. On the contrary: The number of family members in college has a big impact on your financial aid eligibility.

Myth: I plan to attend college part time, so I won't be eligible for financial aid. Financial aid is available for part-time students. Check with the college’s financial aid office for information on aid for part-time students.

Myth: There isn’t enough aid for everyone. The amount of federal aid available for college students increases every year. Over $78 billion was budgeted in 2006 for more than 9 million students. This does not include billions in state and private scholarships and grants that colleges administer or award themselves.

Myth: Millions of scholarship dollars go unclaimed every year. The statement that private scholarship dollars go unclaimed is unfounded. This is what professional scholarship search services would like you and your family to believe—they want you to pay for their services. You can do your own search for scholarships.

Myth: Don't consider your first-choice school if it costs too much. Generally, the higher the total school sosts, the easier it is to demonstrate eligibility for financial aid. Also, the stated costs at a school can be deceiving: aid is often available to offset some of the costs. You should apply to the school and wait to see the financial aid award letter. You may be pleasantly surprised.

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