Need-based scholarships are usually much easier to find than merit-based ones, and students in financial need with great academic credentials will be the best off. A very honest discussion about how much money you are able to contribute toward the cost of college might motivate your child to begin working on financial aid and scholarship applications. Get involved in the process without taking over. Help your child find opportunities, qualify them and provide the financial information required on the applications.

Many parents don't want to burden their children with student loans because they think loans will be a financial stumbling block right after college. The truth is students receive some of the most affordable loans around.

Stafford loans are available to all students at an interest rate guaranteed to be less than 8.25%. The loan principal is limited to $2,625 for the first year, $3,500 for the second, $5,500 for the third through fifth. Stafford loans can be subsidized (the government pays the interest while the student is in college) or unsubsidized (the interest accrues, even though payments aren't made until graduation).

Perkins loans are based on significant financial need and carry a low fixed interest rate of 5%. Depending on when you apply, your level of need and the funding level of the school, you can borrow:

• Up to $4,000 for each year of undergraduate study (for a total amount of $20,000 if you have completed two years of undergraduate work; otherwise, the total you can borrow is $8,000)

• Up to $6,000 for each year of graduate or professional study (for a total amount of $40,000, including any Federal Perkins Loans you borrowed as an undergraduate).

The number of Perkins Loans awarded annually is limited, so colleges often allocate them very carefully.

Federal Work-Study programs provide jobs for college students with financial need to earn money for their college expenses. Jobs are related to community service and areas of course study. The pay rate and amount of work hours required will depend on the type of award your student receives.

PLUS Loans are government sponsored and made to parents for the sole purpose of paying for a child's education. Interest rates must be under 9% and the loan principal is not limited as it is with a Stafford loan. The catch is that borrowers must begin repaying PLUS loans immediately.

In addition to grants and scholarships from organizations, maybe your child still needs more help. If you don't want to apply for federal aid, research what the school itself has to offer. Most colleges and universities have need- and merit-based aid packages available. Meet with someone from the aid office as soon as possible and be prepared. Know what it is exactly that you want the school to provide.

Regardless of how soon your child will start college, a Northwestern Mutual Financial Network Representative can help you prepare a solution to progress toward your goal. A wealth of products and resources are available through The Network, and a Financial Representative can leverage that power for you.