FAFSA stands for Free Application for Federal Student Aid. Everyone should fill this out, even if you don't think you qualify. 
 

You will need to apply in January or February of your senior year, and again each year that you plan to continue college. The form is available at www.fafsa.ed.gov. If you are a parent of a current senior, you should start filling this out as soon as you have your income information for 2010. If you need help or have specific questions, call the CFNC Hotline at 1-866-866-CFNC or 1-888-234-6400.  
 

The FAFSA generates a number called your Estimated Family Contribution, or EFC. The EFC is the amount of money that you are expected to contribute toward college expenses each year. Calculators to give you an estimate of this number are available at www.collegeboard.com (under "For Parents") and www.cfnc.org (under "Paying for College"). The gap between your EFC and the full cost of attending each college is called your financial need. Colleges will put together a package to meet that need that may include grants, subsidized and unsubsidized loans, and a work-study job. They will mail you this package offer sometime in March or April, and you can choose which parts of the package to accept. You should have an offer from each college before you have to make a commitment to your final choice on May 1.