Starting the financial aid quest

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NEW YORK (CNN) -- Question 1. I am helping my nephew navigate the process of applying for financial aid, grants, student loans, and scholarships for college. Can you tell me where to start our search for financial assistance? -- Jan, Georgia

To start your financial aid search, go to FAFSA.ed.gov. This site is where you can learn about and fill out the Free Application for Federal Student Aid. You can also learn about what grants may be available to your nephew. For other college scholarship opportunities, check out fastweb.com and collegeboard.com.

Question 2. I moved into my wife's house in 2006. I have NEVER owned a house myself & I am not on any paper work. Am I eligible for the $8,000 tax credit if I purchase a new home in my name only? - Jason

If you haven't owned a home in the past three years and you purchase one before Dec. 1 of this year, you should be able to qualify for the $8,000 first-time home buyers tax credit. There are income limitations though. Make sure you go to federalhousingtaxcredit.com for more information.

Question 3. I have been laid off. I am trying to consolidate my credit cards debt. One of the companies told me if I consolidate with them it will not affect my credit or my score. A friend told me that it will affect it. I don't know who to believe. Can you help me? - Leoni

The word consolidation can be very misleading, especially when it's used in marketing, says John Ulzheimer of Credit.com.

Often, companies will market consolidation programs, when in fact you're getting into a debt settlement program that can have serious consequences for your credit report, he says. Some companies will market consolidation programs, but they're really offering debt management programs that allow you to make one payment instead of multiple payments on all of your credit card accounts.

Settlement programs have a negative impact on your credit scores and lenders will likely avoid you while you are in the plan, says Ulzheimer. Your best bet right now is to choose a reputable credit counseling organization that's a part of the National Foundation for Credit Counseling. You can find a local agency at their website at www.nfcc.org.

- CNN's Jen Haley contributed to this article

TALKBACK: Sept. 15 marks the first anniversary of the Lehman Bros. failure. What lessons have you learned since the financial meltdown?