Even if you think your child won't qualify for financial aid, you should apply anyway. Aid may be available. Besides, to qualify for some college loans, you must first be denied financial aid.

Read more about the different types of financial aid online:

1. Scholarships
Scholarships are generally considered gift aid because you don't have to repay them. Scholarships are awarded for merit in academics and athletics, or they are based on ethnicity or religious affiliation.

2. Grants
Grants are also considered gift aid. Federal and state governments and universities develop formulas to determine a student's financial need.

3. Educational Loans
Loans are sources of financial aid that you must repay. If you decide to borrow to pay for your child's education, government-sponsored educational loans are a good deal. They are better than traditional and consumer loans because they usually offer lower interest rates and extended repayment terms. They also don't require collateral.

Go online to Sallie Mae's Web site  to read more about financial aid, educational loans and application procedures.