The first thing that prospective college students must do is complete one or two forms.  The FAFSA is the most common form - the other is known as PROFILE.  These forms will help establish if prospective students will be eligible for either need based or merit based financial aid.

The FAFSA is required for all forms of financial aid from federal, state, and college sources.  This form is completed in January, and uses completed tax returns as a base.

The PROFILE is required by some private colleges to supplement FAFSA information.  There is a cost involved in filing this form, and it can be filed at any time.

In all cases, the family is considered the first source of money for college.  Regardless of whether the family actually intends to contribute, both FAFSA and PROFILE will include in their reports an 'estimated' parent contribution known as the EFC.  This figure is reached based primarily on income figures.  In addition, students are also generally expected to contribute as well, from savings, loans, or work.

Prospective students must apply to the college of their choice and be accepted to be considered for both types of aid.  The financial aid office will receive a copy of a student's FAFSA or PROFILE report as well.  When both

acceptance and the report are secure, the college offers the student a 'package' to the student.  The 'package' may include both need based and merit based aid, and will outline expenses (tuition, room and board, books) and resources (aid types and amounts).  Each college will offer a different package, although the EFC will not differ much from school to school.  These packages arrive in March or April, and the family will need to decide which offer to accept.