More than 50 percent of today's college students receive need-based financial aid. This type of aid has nothing to do with how good your grades are or how beautiful your dancing is, only on how much you can demonstrate that you and your family need financial assistance in order to pay for college. You should always apply even if you think you don't qualify. What have you got to lose? Applying is absolutely free, and you may be pleasantly surprised. Generally, a school doesn’t even see your request for financial aid until after making a decision, so it will not deter them from accepting you.

To apply for aid from the federal government you will need to submit the Free Application for Federal Student Aid (FAFSA) form. Some schools will also require one or more supplemental form. They will either have their own or use the College Board's CSS PROFILE form. These are used to determine what amount, if any, a family (meaning the parent and student) can afford to pay each year. Both the FAFSA and the PROFILE are available through guidance counselors' offices or online, usually in early December, and each form takes about an hour to 90 minutes to complete. You will be asked to list all colleges that you are applying to. The Department of Education and the College Scholarship Service will then send copies of your form to listed institutions. You can apply for financial aid at a university before you are actually admitted as long as it is after January 1. However, you won’t actually receive funds until you have been admitted and enrolled at the university.

The formulas consider a variety of family circumstances when determining eligibility, and there is no definite maximum income a family can have to still qualify for assistance. The form collects income and asset information, as well as demographic data like parent age, family size, number of students in college and other related information. You can also provide information on any extenuating circumstances that affect your family's ability to pay full tuition.

You will probably find out the details of your financial aid eligibility when you receive your acceptance letter. The portion of need that a school will meet varies, but almost all will offer three types of assistance: Work-study, deferred interest and payment, or federal loans and grants. While everyone would prefer free-and-clear grants, work and loan opportunities can also be extremely beneficial.

You have to reapply for financial aid every year. After your first year you will receive a "Renewal Application" with preprinted information from the previous year's FAFSA. There are many factors that effect eligibility for financial aid and it may change from year to year, so even if you don’t qualify for financial aid one year, you should reapply the next. For example, if a sibling enrolls in college, you may become eligible. Renewal of your financial aid package depends on your making academic progress toward a degree, so there will be a minimum number of credits and a minimum GPA that you must maintain.