Navigating the financial aid process can be just as daunting and perplexing as choosing a college. But a school's high price tag shouldn't keep you from your bright future. Here are a few key pieces of information to help you through the process:  "The first thing students will want to do is get a handle on what types of schools they're applying to,†says Michael Ellison, assistant dean of admissions and financial aid at Amherst College. Students need to find out if the schools offer merit-based awards or need-based awards or a combination of the two. If the school uses a need based system Ellison encourages families to use some of the tuition exercises available online.  Students can use the "expected family contribution (EFC)†calculator at www.finaid.org to help gauge how much tuition they may be expected to pay.  Filing your FAFSA: To determine eligibility for federal aid, students must fill out the Free Application for Federal Student Aid (FAFSA). The form, which requires both student and parent financial information, can be accessed at www.fafsa.ed.gov beginning Jan. 1. Each school has its own deadline for when it must be completed.  The award letter: Once you've been accepted to a school you will receive an "award letter†detailing how much aid the school will give you. Most letters compare cost of attendance and some even include books and transportation.   The work-study factor: It's not like a loan or scholarship. In fact, depending on the institution, most students will receive their work-study money as a paycheck once they find a university-sponsored job. "You'll want to familiarize yourself with the institution so you know if work study will go directly toward your bill or if you will get a check†Ellison says.  Appealing your award: If you think you financial aid package is inadequate, try appealing it. It's important to have documentation of factors such as  medical expenses, a parent's job loss, divorce, or separation to prove your financial shortfall. "Provide new information that we didn't know about,†Ellison says. Check with your school's financial aid office to find out how they handle this process.   Still more aid:  If the appeals process does not work, make sure you maximize all federal loans before you head for the private loans. A Parent Loan (PLUS loan), can be taken out by parents if they are eligible, but if they're rejected you will be eligible to max out your Stafford Loan.  Private Loans: Once you've exhausted all your resources, private loans can be a last resort . Ellison recommends comparing fees, interest rates, and terms and conditions of different lenders. "A good rule of thumb,†says Mark Kantrowitz, publisher of FinAid.org, a financial aid resource guide, is to "not borrow for you entire education more than your expected starting salary after you graduate.†He says students who borrow more than that are more likely to go into an extended repayment.  Scholarships: Scholarship are usually a blessing in the unsightly world of pricey education. But external scholarships awarded directly to your institution can mean a decrease in your award package. "Some schools take [outside scholarships] directly off what the institution is going to give,†Ellison says. Find out how your school will treat outside scholarships.   Aid Tip: Learn your schools financial aid processes inside out. Speak to counselors, upperclassman, and professors. Understand the jargon and be prepared.   Don't start the financial aid process without knowing these key terms: FAFSA: Free Application for Student Aid, determines your eligibility for federal aid. It must be filled out each year and can be accessed Jan.1 on www.fafsa.ed.gov.  CSS Profile: The College Scholarship Profile is used by more than 600 institutions to determine student eligibility for nonfederal aid. Check with your institution to see if it is required.   EFC: Expected Family Contribution is "a measure of the family's ability to absorb educational costs over a period of time,†says Mark Ellison, director of Admissions and Financial Aid for Amherst College. Your EFC is determined once you've filled out your FAFSA.   Merit-based awards: These are usually based upon academic, artistic, athletic or some other non-need-based criteria to award aid.  Need-based awards: Aid based upon your financial status.   Award letter: Issued by the school's financial aid office, it breaks down your financial aid package based upon grants, loans, scholarships and federal work-study. You must accept or decline the award by the school's deadline.   Appeal: A request to have your financial aid package reviewed by a school's financial aid administrator. Students should document any extenuating circumstances that will affect your financial situation such as the death of a parent, unemployment, divorce, separation, and medical conditions.   Federal work-study: A federal program that provides students with part-time employment with their school during the academic year. This need-based aid is based on eligibility.  Federal loans: Loans backed by the government. Federal loans include the Stafford Loans, Plus Loan, and Federal Perkins Loan. They all have different eligibility requirements, interest rates, and repayment rules.  Subsidized Loans: Loans that are subsidized will have the interest of the loans covered over a specific period, usually while students are enrolled full-time in college and for up to six month after graduation. With a federally subsidized loan, the government pays the interest while the student is enrolled and during the six month grace period.  Private loans: Education loan programs that are established by private lenders to supplement financial aid awards..  529 Plan: Also known as qualified tuition plans (QTP) according to Bankrate.com, this plan allows parents to set aside money for educational expenses with "tax deferred growth.†Plans can vary by state. Families can be enrolled in a 529 plan through a financial adviser or 529 Plan manager. Check out www.savingforcollege.com for a list of plan managers by state.  Resources www.fastweb.com: A free scholarship matching service www.finaid.org: A financial aid resource guide, www.blackstudents.com: Offers a biweekly newsletter containing scholarship, internship, and grant information. http://www.finaid.org/questions/glossary.phtml