Today could be a day of liberation for millions of college graduates who are struggling with college loan payments. Thanks to the federal government's new Income Based Repayment Plan, which takes effect today, many debtors can cut their payments on their federal student loans to less than 15 percent of their incomes.

The U.S. Department of Education's official site about IBR is a great place to start, but anyone thinking of applying for the program should consider a few details:

Millions of students and parents struggling to raise cash for college this fall could have a happy surprise early next year: an extra tax refund of up to $2,500.

The new higher education tax credit, which was part of the stimulus bill signed into law in February, is expected to put hundreds, if not thousands, of extra dollars into the pockets of millions of Americans who write tuition checks this year. Better yet, students don't have to fill out any extra financial aid applications to get the new money. They just file their taxes.

"This will definitely help people," says Jackie Perlman, an analyst for H&R Block's Tax Institute.

Of course, like anything in the federal tax code, the rules are a little complicated. But experts like Perlman say the new credit is bigger and more inclusive than previous higher education tax credits, which were so complicated that more than a quarter of eligible taxpayers failed to get a penny, and those who were able to collect typically got less than $900.

It sounds like just a new twist on the all-too common Nigerian scams or Madoff-style Wall Street bait-and-switch. But it's true: Some states, businesses, and colleges are really handing out free cash to help build up parents' college savings accounts.

There are a few catches, of course. Nobody should sign up for anything that sounds suspiciously good without doing a little homework. And most of the grants and rebates are comparatively modest: The typical family might reap a few hundred dollars. Few parents will get enough free cash to make up for the average 20-plus percent decline in 529 college savings plans over the past year. (Tax-protected education savings accounts are called 529s after the part of the Internal Revenue Service code that created them.)

Although I've been writing for years about financing college, I've never before received so many letters like this one from Philip I., who is a mortgage consultant in New England: "I am panicked. My son is a junior in high school. Any ideas would be helpful." Many parents are reeling from big financial losses at the same time they are shocked by college price tags, confused by all the nitpicky rules, and scared that they'll ruin their children's future if they can't figure out some way to get them through college.

Luckily, we've put together advice from financial aid experts—including lots of parents who managed to pay tuition without going bankrupt. A basic primer to financial aid can be found here.

While every student and family is unique, there are four principles that apply to everybody:

As the values of real estate, stocks, and bonds evaporate, people seem to be questioning whether investing time and money in a college degree is worthwhile. The answer, it turns out, is pretty clear: A wide variety of studies show that, on average, college pays off in financial and nonfinancial ways. But some college graduates—especially those who attend low-quality institutions or take worthless courses—will be below that average and might very well be wasting their time and money. Those who are lucky, smart, and diligent enough to attend high-quality colleges and earn in-demand degrees will be far more likely to reap big rewards.

This is controversial stuff. Our story summarizing research that shows that the average real net present value of a college degree is about $300,000 drew hundreds of comments. A new software program developed by computer whizzes and journalists at Ohio State University and the University of Delaware analyzed the nearly 700 comments and found that those who wrote were split nearly 50-50 over whether a degree was really valuable.

Q: How will the recent financial and economic troubles affect my college scholarship?
A: Anyone who has already qualified for any kind of grant or scholarship this fall should be fine. But charities and governments are already planning to cut back the amount of money they'll be handing out next year.

The market meltdown is increasing demand for scholarships far above the dollars expected to be available next year. In fact, several scholarship programs are likely to cut awards next year, despite record-breaking applications.

Alan, a U.S. citizen studying at the University of Kassel in Germany, asks:

"I am growing quite desperate. I am looking for any type of aid that I can find.... I have an available cosigner with good credit, yet so far I have been unable to find any private loan. My school is not able to receive federal funds. After countless hours of searching and asking, I have found nothing. I am also not the only person in my situation. There seem to be many Americans abroad who face the same financial issues due to the current economic troubles. We are running out of options and have nobody to help us. Well, frankly...it sucks."

While the financial situation is looking a little grim for U.S. citizens studying at overseas schools that are not approved by the Department of Education, it is not entirely hopeless. Students who are willing to transfer, or get creative, might find ways to finance an overseas education.