With the average cost of a private undergraduate education topping $40,000 per year, it’s easy to understand why many families experience “sticker shock” when it’s time to apply to college. And while it is certainly expensive to attend a college or university, it doesn’t have to be as costly as you might expect. And until you know how much and what type of financial aid you will receive, it’s impossible to tell what the cost of your education will be.

The fact is, 75% of students pay, on average, less than $8,500 for their educations, and most students pay far less than the official “total cost” of attending any particular school. At most colleges and universities, it’s very common for a high percentage of students to receive some sort of financial aid, so it’s important for applicants to become familiar with their aid options. And don’t be put off by a more expensive school: the good news is that schools that charge higher tuition also tend to have more financial aid available!

Students may be eligible for financial aid based on their family’s demonstrated financial need. There is also non-need aid available – this is sometimes referred to as “merit” aid and may be rewarded to students based on their academic records or for achievements in sports, music, theater, etc. Both types of aid require filling out the same standard application forms. Financial aid is not just for tuition – this money can also be put towards the cost of books, room and board, personal expenses and transportation.

There are two types of financial aid available: “gift aid” refers to grants and scholarships that you do not have to pay back or work to receive. “Self-help” aid includes campus jobs or educational loans you’ll have to start paying back after graduation. While loans may be necessary to pay for college, it’s important to think carefully about how much debt you will accrue before you’ve even entered the work force.

The amount of money you get from a school may depend on whether it’s a reach school, a safety school or something in between – schools tend to give more financial aid to more qualified students.

For many, attending a state university as a state resident can be a great way to obtain a high-quality education at a significantly lower cost. Tuition at these schools is much less expensive than at private colleges, despite the fact that state schools can be very selective. For some families, however, the cost of attending a higher-priced private college may actually be cheaper because of more generous financial aid packages.

No matter what, college is not an inexpensive way to spend four years. But think of this time as an investment: with a college degree you will earn, on average, over one million dollars more in your lifetime than you would with a high school diploma.