(BPT) – The college years are an important milestone in a young person’s life — during this time they explore options for future careers and gain experiences that shape the person they will become. These years can also bring stress, especially when it comes to figuring out how to pay for their education. A recent survey found that while 81% of students felt a college degree was crucial for their future, 7 in 10 also agreed paying for college is stressful — and 67% found the cost surprising.
In the College Ave Student Loans survey, it is clear that most families manage paying for college from a combination of several different sources, rather than relying on any one source of funding.
According to the survey, the top 5 sources used to pay for college are:

• Merit aid (scholarships/grants) — 51%
• Federal student loans — 46%
• Parent savings/income — 40%
• Student savings/income — 36%
• Private student loans — 20%

Here are 6 tips to help you get started with putting together your financial plan for college.
1. Everything starts with the FAFSA
If your child will attend school next fall, you probably filled out the Free Application for Federal Student Aid (FAFSA) months ago. This form must be filled out each year your child attends college, and becomes available on October 1. It is not just the federal government that uses FAFSA information to provide grants or loans — schools also use this information to offer financial aid, such as scholarships. Because some funding is limited, it’s important fill the FAFSA out as early as possible.
2. Grants
The most well-known government grant, the Pell Grant, is based on student need. However, other grants may be available through your state or school, so be sure to check your state’s department of education website.
3. Scholarships are not just about grades
It’s not just students with a 4.0 GPA who qualify for scholarships. Some are based on a wide variety of criteria such as where you live, interests/majors, family background — or even by chance. Many employers offer educational scholarships, so ask your HR department (and your child’s employer, if they have one). Check with community groups or civic organizations you belong to, or that are active in your area. Your child’s high school guidance counselor can also help with finding scholarships.
Don’t forget online scholarship searches at websites like Fastweb, Scholly, Cappex and Unigo. One easy scholarship to apply for is a $1,000 monthly scholarship sweepstakes at CollegeAve.com.
4. Federal student loans
If you need to borrow, the best place to start is with any federal loans in the student’s name that they qualified for as part of their financial aid package. These loans have low fixed rates and offer unique benefits, such as income-driven repayment plans.
5. Private loans
Because federal student loans have annual limits, you may need to consider a private student loan to help bridge the gap between the financial aid your family receives and the amount you need to cover remaining expenses. Use the student loan calculator at CollegeAve.com to look at possible monthly payments, private loan interest rates and repayment terms.
You may also consider private parent loans, if you have strong credit and are able to take on the debt. Private parent loans such as those at College Ave offer a choice of fixed and variable rates and no origination fees, unlike federal parent PLUS loan options.
6. Part-time employment
Students can also help pay for expenses by working part-time. The survey found 6 out of 10 students plan to have a job while in college. Students who qualify for work-study will have options for jobs right on campus. If not, they can look for other part-time work in the area. Some students may also opt to work over the summer and use that income to help pay for expenses over the school year. Looking for summer jobs in the student’s field of interest is also a great resume builder.
Cutting costs up front can also help make college more affordable. Strategies like using public transportation, buying used textbooks and living at home can help students save money. Another option is spending the first year or two at a community college. Just make sure all course credits will transfer to the student’s preferred school.
These tips should help you begin putting together your best combination of funding options.