Student Loans are imperative this day and age; especially when considering the fact that an average year at a public college costs more than $16,000. You can double that figure if you plan on attending a private college. Student loans are especially essential for students who wish to attend an Ivy League College, their tuition fees are upwards of $40,000 per year.

Even more shocking is the fact that tuition prices are on the rise, in fact college price hikes are increasing faster than inflation rates and show no signs of slowing down. Colleges compete for the best and the brightest by offering the latest technology, high tech labs, libraries, athletic facilities and recreation centers. These top notch facilities cost a lot of money to maintain, so the fees to attend these high quality learning institutions are paid for by students, most of which do so by taking out student loans.

Very few college graduates pay the full price of their college education. In fact, more than $100 billion in financial aid and student loan funding is offered to students each year from private organizations and the federal and state governments. More than 65% of all college students attending a four year college get some sort of financial aid or student loan.

So the question is, how can you qualify for your piece of that $100 billion for your student loan. Right?

The first step to qualifying for your federal student loan is to fill out the Free Application for Federal Student Aid. This form will determine how much money you are financially able to contribute toward your college education. The FAFSA form factors in a number of the family’s financial circumstances such as income, assets and number of children attending college to determine your Expected Family Contribution (EFC).

It is a lengthy and somewhat complicated process, but a process that could save you thousands of dollars in tuition fees. It is imperative that you fill out the forms accurately and completely. You will need to have W-2 forms, tax returns, bank statements, mortgage statements, business records and records of untaxed income handy when filling out your FAFSA student loan forms.

It can be a real pain gathering all this info to file for your student loan, but it is worth it because the FAFSA is used to apply for all federal and state student loans and grants. Any school you apply to will use your EFC to create your financial aid package, no matter what the price of the school is, so it is absolutely crucial that you fill out your Free Application for Federal Student Aid accurately. The amount of student loan funding you receive depends upon it.