It’s January, which means it’s time to begin filling out your FAFSA (free application for federal student aid). The sooner you file your FAFSA, the better off you’ll be because you will qualify for more free money, like Pell Grants. If you wait, you will still qualify for loans. But why go into student loan debt if you can avoid it?

The online FAFSA is a bit time consuming to fill out, but if you’ve done it before, it saves your information for you. In order to start, however, you’re going to need your tax return or at the very least your W-2 form(s). So if you haven’t already received yours, start doing some detective work to find out when you can expect it.

Many people are probably worried about the state of the student loan business in the wake of all the financial implosions in the Fall. Student loans from private lenders have certainly become harder to obtain (along with car loans and credit cards), but money from scholarships, grants, and federal loans will still be available. And this is the money you want to chase anyhow. The Dallas Morning News advises students that:

Federal financial aid includes need- and non-need-based grants, scholarships, work/study and low-cost student loans.

When seeking financial aid, first seek free money through grants and scholarships.

Supplement that with your income, college savings, and a monthly tuition payment plan.

Then look for federal loans for students and parents because they offer low, fixed interest rates and flexible repayment options.

Use private education loans made by financial institutions as a last resort. They tend to cost more than federal loans and typically have variable interest rates.

One challenge for LGBTQ students is that unless you’re 24, you will need to include your parents’ tax information on your FAFSA. Many of us have become estranged from our families, so this can present a major obstacle to getting the financial aid we need for college. However, you can fill out paperwork with the financial aid office to declare yourself financially independent. Be sure you speak to a financial aid adviser at your school and get started on this paperwork. It might be a little emotional for you to officially cut the financial ties with your parents, so if there are free counseling services available at your school you might want to take advantage of them.

One final resource in your financial aid search is Fastweb.com, a free online scholarship database. Don’t be swindled by some of these online services that charge a registration fee when there are free resources available.

Good luck with your financial aid search.