Dear Savvy Senior,

Can you give me some tips on finding college money for our grandkids? My wife and I have five grandchildren (two that are living with us) and they'll all need financial assistance for college. What can you tell us?

Tapped Out Grandparents

Dear Tapped Out,

The cost of attending college today has gotten out of control. In the last decade alone, costs have jumped around 40 percent. But the good news is, there's more financial aid available than ever before - nearly $135 billion. Here are some tips to help you find it.

Get Help

A good starting point to help you learn what kinds of aid are available is at your grandchildren's high school guidance office. Counselors should be able to provide you with a variety of financial aid information and materials as well as tell you about potential local scholarships from civic groups, local business, foundations, religious or community organizations. Another option is to contact the financial aid office at the college(s) your grandchild wants to attend and be sure to ask about their institutional aid, which is money the school itself awards students. Also see www.finaid.org and www. students.gov, two comprehensive Web resources for finding student financial aid. Here are a few specific things to know.

Federal and State Aid

Federal student aid programs are the largest source of student aid in the country (see www.student aid.ed.gov). Each year nearly $75 billion is awarded through grants (free money you don't have to pay back), loans (borrowed money you do have to pay back with interest) and work study programs (employment which helps a student earn a portion of school costs). To apply, you'll need to fill a Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov or call 800-433-3243 and they'll mail you one. Eligibility for federal aid is based on need, but don't assume your grandchildren aren't eligible. Fill out the free application and find out. (Note: the best time to apply is between Jan. 1 and March 1 of your grandchild's senior year of high school.) If they're not eligible for federal aid, they might be eligible for financial assistance from your state. Contact your state higher education agency (see www.ed.gov/ about/contacts/state) for more information.

Scholarship Search

There are hundreds of thousands of scholarships and fellowships (free money you don't have to pay back) from thousands of sponsors that are awarded each year. Generally, these are awarded based on academic, athletic or artistic merit. However they're also available for students who are interested in par- ticular fields of study, who are members o f underrepresented groups, who live in certain areas of the country or who demonstrate financial need. How can you find scholarships? One of best ways is online. Here are some top free search sites to help you get started:

FastWeb (fastweb.com)

The College Board (college board.com)

Scholarship Experts (scholar shipexperts.com)

Scholarship Resource Network Express (srnexpress.com)

College Answer (college answer.com)

Savings Plans Another way to help pay for your grandchildren's college is to start a 529 college savings plan. Available in every state, 529's allow you to save for your grandkids future college costs, tax-free. As long as the money's used for higher education, you pay no tax on your investment gains, and in many states you can even deduct part or all of your contribution on your state tax return. See www.savingforcollege.com to learn more.

Savings Clubs

Are you aware of college savings clubs like Upromise (www.upromise .com), BabyMint (www.babymint .com) and LittleGrad (www.little grad.com)? These offer a way to use everyday purchases to save money for college. While details vary depending on the program, the general principle is the same. If you spend money at the companies affiliated with the program, these companies will deposit a small percentage of the purchase price into your grandkid's college fund.

Savvy Tips: If your grandchildren are interested in pursuing careers in the military, see www.military.com, and click on "Education" to learn about military aid for college. Also see www.scholarshipcoach.com for a variety of products that can help you find cash for college.

Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit www.savvysenior.org. Jim Miller is a contributor to the NBC Today show and author of "The Savvy Senior" books.