It might be time to take a class to brush up on skills or to work toward completing a degree.

It may be that you want to pursue your college education to set an example for your child.

Whatever your reason, now is the time to start planning your finances.

January is the right time to start thinking about financing your education because money is awarded to federal and other aid applicants on a first-come-first-served basis. To be considered for the best financial awards at a college, many times the priority deadlines are in February or March.

You do not want to find out this summer that you qualified for some grants or scholarships, but the money was awarded already.

January is also the time when you will be receiving all your tax forms in the mail. While you have them handy, you may as well complete the Free Application for Federal Student Aid, known as the FAFSA.

You must comple the FAFSA online at www.fafsa.ed.gov to qualify for federal grants (money you are given that does not have to be paid back) and loans (money you will need to repay after college). Many state grants and scholarships awarded by colleges also require that the FAFSA be completed. Follow the instructions on the FAFSA Web site carefully. There are worksheets you can print out and complete before submitting your official document, there are deadlines to meet and everyone must request a PIN (personal identification number).

There are several documents and information to gather in order to complete your FAFSA. You will need:

— your social security number,
— driver’s license,
— 2007 W-2 forms and other records of money earned,
— your (and your spouse’s, if you are married) 2007 federal income tax returns,
— 2007 untaxed income records,
— current bank statements,
— current business and investment mortgage information,
— business and farm records,
— stock, bond and other investment records.

For more information and an explanation of the documents, go to the FAFSA Web site.

Four main criteria wil determine what your Estimated Family Contribution (EFC) toward your college costs will be. This will then determine what financial aid you are eligible for at each college.

First, the FAFSA will look at the income level of you and your spouse. Second, the FAFSA will look at assets. Assets include things like stocks, bonds and investment properties. The net value of the home you live in does not need to be reported. Third, the FAFSA considers the number of people in the household. The last criterion is the number of people in the household in college. A parent who is going back to college and has one child in college can count both.

Note that the cost of the college you will be attending does not affect your EFC. For example, if you are eligible for a Pell Grant, the amount you receive will be the same for any public or private school.

If you want to learn unofficially what your EFC may be, there are Web sites that can help. One is www.finaid.org/calculators/finaidestimate.phtml. Keep in mind that an estimator like this is only as accurate as the information you submit. To complete this estimator, you will need many of the same documents you need to complete the FAFSA.

Once you have your EFC, you can talk to a financial aid person at the colleges you are considering. They will be able to tell you some of the financial aid you will qualify for. Keep in mind that the financial aid person probably cannot tell you just by the EFC whether you will be given a scholarship.

If you are looking for scholarships, ask at the college if they have them for nontraditional students. Also check online for scholarship possibilities through other organizations. Some sites to get you started in your search may be www.fastweb.com or www.finaid.org/otheraid.state.phtml.

Finally, if you have questions, don’t hesitate to ask a financial aid counselor at a local college for help.

Crystal Lorimor is director of marketing and public relations at Ohio University Eastern Campus in St.Clairsville. She wrote this article with the assistance of the OUE Student Services Office.