APPLYING FOR FINANCIAL aid often triggers apprehension in college-bound students and their parents, but today’s crisis in the educational loan industry has only escalated fear and anxiety.

Ben Miller, who writes for Ed Policy Watch, claims, “to date there haven’t been any reported cases of students being unable to obtain a Federal Family Educational Loan (FFEL). Several dozen lenders have left the program, but the largest companies, such as Sallie Mae, are still participating.”

While students can still obtain loans, not all of the existing lenders are willing to lend to all students at all types of educational institutions. For example, Wells Fargo, Citibank and Chase no longer will lend to students who attend community colleges. Ironically, these students are often low-income students, and as a result, the population most in need of loans.

At Luzerne County Community College, Financial Aid Director Mary Kosin is working assiduously to inform students of the private lenders still offering loans to community-college students. That list is so fluid Ms. Kosin can no longer print it; instead, she publishes updated information on www.luzerne.edu and notes that the financial-aid section of the college’s Web site is a tremendous source of information for families as are those of most colleges.

This new complication makes it even more crucial for students to work with their college’s financial-aid office. A financial-aid officer can explain the type of loan program the college offers and guide the student through the process. None of that can occur, however, before the student and parent (if the student is dependent) files the Free Application for Federal Student Aid (FAFSA).

While the deadline for Pennsylvania state aid is May 1 and many colleges have deadlines in January and February for filing the FAFSA, other colleges, Luzerne County Community College among them, simply require filing four to six weeks in advance of classes starting (filing earlier than that is most definitely recommended, however). According to Ms. Kosin, the greatest mistake students make is waiting to file the FAFSA; they think they can apply for financial aid when they register for classes the week before school starts.

Ms. Kosin urges students contemplating taking classes at LCCC this fall to file a FAFSA immediately. The first step is to log on to www.fafsa.com and download a worksheet, complete it, then enter all of the information into the electronic form (while paper forms still exist, the Federal Government strongly recommends electronic filing). Following the submission, the student will receive via e-mail a Student Aid Report (SAR) indicating eligibility for grants and loans.

College financial-aid officers are a tremendous resource for families applying for aid. They can answer questions, provide direction and even guide students through completing the FAFSA. While financing a college education sparks much anxiety these days, filing the FAFSA early and consulting your college’s financial-aid officer could alleviate many concerns.