The first place to start is the Free Application for Federal Student Aid (FAFSA). This form will allow you to apply for low interest loans, and more importantly for Pell Grants. You can fill out the FAFSA online at http://www.fafsa.ed.gov or get the paper forms at your school financial aid office if you prefer. Expect to need all relevant financial information including bank statements, W-2 forms, prior year's tax forms, and if the student is under 22, parental financial information as well. If you need assistance with the FAFSA, your school's financial aid office may be of assistance. High school students will typically find that assistance in managing financial aid application is available via your guidance counselor.

The Pell Grant is a federally funded grant that can assist you with tuition and other school expenses. Pell Grants are available only to undergraduate students, and do have income limits. In 2007-2008, the maximum Pell Grant amount is approximately $4,300. Pell Grant awards are dependent not only on income, but also on hours enrolled, credits, and more. If you qualify, this grant is an ideal means of assisting with your college expenses, as it does not have to be repaid.

Federal tax credits can also help you pay for college, whether for yourself or your dependent child. There are two education tax credits that can provide some amount of financial relief; however, you may only claim one of these per student per year. The Hope Credit is available for any student in his or her first two years of college education and enrolled at least half time in a degree granting program. The Lifetime Learning Credit is available to students enrolled at an eligible educational institution, pursuing coursework that will serve to improve or allow them to acquire job skills. The amount of these credits is impacted by both your adjusted gross income and tuition costs. Neither tax credit is refundable above and beyond your tax debt. More information on these credits may be found at http://www.irs.gov/taxtopics/tc605.html.

You may also find that you can take advantage of private scholarships or grants in your search for funds to pay your educational expenses. Many companies provide tuition reimbursement to employees working on relevant degree programs. Fully explore all your funding options if you are considering going back to school. With programs like the Pell Grant, tax credits, and additional funding sources from private organizations or your employer, you may find it easier to afford your expenses than you expect without incurring debt or financial hardship.