College funds await

If you're headed to college this fall -- or have a child who will be going -- now is a good time to fill out a Free Application for Federal Student Aid, aka the FAFSA.

That's the advice of Ben Kittner, who handles market research and public relations for the College Foundation of North Carolina.

Kittner said the state has more than $250 million in need-based grant money to hand out to state residents who are admitted to North Carolina colleges this year. There's also close to $350 million in other state financial aid available. But to be considered for any of it -- or pretty much any federal grant or loan -- you first have to fill out a FAFSA. Since the grant money is available on a first-come, first-served basis to those who qualify, the sooner you submit your FAFSA, the better your chance.

You'll need some 2008 tax information to complete the form, but you can start with estimates and make corrections after you finish your taxes. Federal student aid loans have one deadline for turning in the FAFSA and another deadline for corrections to the form.

Find a link to the 2009-2010 school year FAFSA application at CFNC.org or at FAFSA.ed.gov. Kittner said to avoid any Web site that charges to help complete a FAFSA. Remember, that first F stands for "free."

If you do need help with the form, you can get it Feb. 21 -- FAFSA Day -- at 60 locations across the state. Find out where and register at CFNC.org/FAFSAday or call 866-866-2362. The help comes from CFNC and the N.C. Association of Student Financial Aid Administrators.

Kittner has been paying more attention than usual to college costs the past few years because he has one child in college and another applying right now. So I asked him for suggestions on where to find cash for college.

In addition to CFNC, which lists the state's scholarships and grants, he suggested:

* finaid.org and fastweb.com -- the sites list national and international scholarships.

* your employer; many large companies such as Wal-Mart and McDonald's have corporate scholarships.

* merit scholarships from trade associations and credit unions.

After grants and scholarships, Kittner suggested turning to federal loans because they carry some of the lowest rates. He also noted that many colleges have work-study programs that can at least help keep students in pizza, if not textbooks.

BEWARE OF GIMMICKS: Knewton, a company that offers online test prep at www.knewton.com for the SAT, GMAT and the like, is offering a discount through Jan. 31. The amount? Whatever the Dow Jones industrial average has dropped from its 2008 high on the day you register. On Friday, that was 32 percent.

It's a fun gimmick, but be sure to comparison shop. And remember, the College Board has free prep.

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A recent column with home-buying tips flipped two terms.

"Pre-qualified" means you've been determined credit worthy and have a rough idea of what size loan you'd qualify for, but nothing has been verified.

"Pre-approved" means your credit history, salary, etc., have checked out, and you know exactly what you can pay for a house. Getting a "pre-approval" letter could help with negotiations because the seller knows that your offer is already backed by a lender.