The current economy is not an environment for sissies. Banking institutions and other lenders are looking long and hard at credit histories before they lend money, and they reserve the most advantageous interest rates for those with a-list credit scores. This credit-tight climate has college students and their families wondering how it is possible to finance a college education. But fear not: if you are prepared to do the heavy lifting, there are places – both traditional and non-traditional – where college loans and even scholarships can be found. So, let’s get started…

• Whether you are applying for a loan, grant or scholarship, one of the first steps is to fill out FAFSA (Federal Application For Student Aid) or CSS/Financial Aid Profile (a service of the College Board) form. Many potential lenders and college financial loan officers and scholarship committees use the information on these forms in making their loan decisions and scholarship awards.

• Federally-backed loads tend to be small and expensive. If you’ve got a good credit score, banks and other lending institutions are an option. But just because loan money is tight, make sure you shop around and get a range of options from various lenders. College financial aid offices are a great source of information about loan options. There are several excellent on-line sources that can be very helpful – SimpleTuition is a good place to start. Nonprofit lenders usually have lower interest rates, so check out the Educational Finance Council to see if you are a match for any of these lenders.

• Never sign on to any loan agreement that does give you an upfront picture of your loan, interest rates and terms of repayment. Some loans will begin adding interest while you are still in school, others don’t start the clock until you graduate. Make sure you get all the facts before you sign on to any loan package. Student Lending Analytics has excellent information about lenders and lending practices.

• Some students are getting creative and finding ways to help finance their education from personal loans from family and friends. However, if you are going ‘personal’, there are services that can help you structure a loan so both you and the lender(s) are confident about the details. Check out Fynanz, Greennote, and Virgin Money.

• Even with money tight, there is still scholarship/grant money available, so make sure you explore sources of these funds. Qualifying for this kind of aid can be tough and time-consuming, but remember, scholarships and grants are the closest thing to ‘free money’ – you don’t pay back these monies. Scholarships and/or grants are awarded either on a need-based basis or in recognition of excellence – usually in academic, athletic or artistic arenas, although there are scholarships given for community service and other pro-social work.

There are other sources of loans, scholarships and grants – some employers have tuition-matching programs for employees and their families. Employees of colleges and universities often qualify for reduced or free tuition. Check out all the available resources. Make sure your FAFSA and CSS forms are filled out correctly and are on file. Even with a tight economy, there are ways to finance you education and not put you in hock until your retirement – so get busy!