t's the dream of every parent and collegebound student: Win that magical scholarship that pays for everything. Yeah, right.

College scholarships come in many sizes and in hundreds of different categories, but hardly any will pay the full freight of a four-year college education. Meanwhile, finding the right scholarship requires as much "insider" know-how as picking the right stock. To get started, first, do your homework. Motivate yourself by reading Winning Scholarships for College, An Insider's Guide, by Marianne Ragin. The author amassed $400,000 in scholarships - a sum that could send a student just about anywhere with money left over.

Start early. Begin looking at college materials two years before it's time to apply.

Your child usually must maintain a "B" grade average or better, score well on college entrance exams such as the Scholastic Aptitude Test and excel in some extracurricular activity like music or athletics.

Start by selecting a college that prizes academic excellence as much as you do.

Not all scholarships come in the form of outright grants. Many scholarship programs include discounted tuition that comes as part of a "preferential package" from colleges seeking to shape their entering class with top students. The number of "trustee" or "president's scholarships" offer a sign of how strongly the alumni feel about the school. A well-heeled school, financially speaking, suggests that its graduates think they were well rewarded in their careers - probably by some of the school's alumni. It's nice to get confirmation that your choice of school translates to a head start on your future.

Many schools do not offer aid packages to cover all of a student's recognized financial needs. The difference between a student's need and the school's award is called the "gap," which can be as much as 35 percent below the estimated need. For some schools the "gap" is narrowed if the student has achieved high academic or other honors.

According to the National Association of College Admissions Counselors, 23 percent of all colleges close the "gap" based on the academic desirability of a student. Some schools, such as Bard College in New York, accept any student who ranks in the top 10 percent of his or her public high school at the tuition rate of the student's state university. That can be a huge decrease from Bard's typical $27,000 price tag.

Colleges also offer specific scholarships for special achievements and general excellence.

Twenty percent of these types of grants come from the coffers of the individual colleges and universities. Boston University, for example, awards a scholarship that pays nearly $20,000 of its $27,000 yearly tuition cost, as does Ohio University. Both are based on scholastic excellence. Scholarships for music, art and athletics are clearly defined. Academic awards are based on a combination of a student's SAT scores and his or her academic ranking as compared with classmates. Work with your child to achieve at least that goal.

Several states offer honors programs that are very prestigious.

Robert C. Byrd Scholarships offers $1,500 a year (state criteria apply to this essentially federal program). Ohio, Massachusetts and Alaska award scholarships to out-of-state residents. But most states keep their money for the home team. After all, funds usually come from state lotteries and are earmarked for residents. Check out Peterson's College Money Handbook 1998 for a state by state list. Your high school guidance office and the Federal Student Aid Information Center also have the information.

Most states have special education programs for the disabled. Ask the college financial aid officer, or write to your state's division of vocational rehabilitation.

The federal government and the military also offer some scholarships based on merit.

Scholarships from corporations, community groups and religious organizations abound, if you know where to find them. Peterson's Scholarship, Grants and Prizes 1998, does a credible job of providing guidance on these scholarships. But the best bet is to analyze your child's strengths and approach groups that promote such talent.

Check with your employer and with all the organizations you belong to see if small grants or awards are available. Many companies also give merit awards to students entering particular fields.

Union groups also set aside scholarship funds that are usually granted on a merit or need basis to members' children. Ask about these at your union's benefits office.

If you and your child select a college early enough, you can enter a prepaid plan that freezes the cost of college to a specific amount that is actually less than the anticipated rate of inflation by the time your child enters the school. If your child does not enter college or is not accepted, your money is returned (by most colleges), minus an administrative fee. You get prorated refunds if your child drops out or fails in later years.

Check with your dream college. Know the downside possibilities of prepaid tuition. Prepaid programs sometimes cause a student to lose out on a potential grant or other types of aid. The college no longer needs to "court" the gifted student, so it often times withholds money it otherwise might have offered.

If you can get a tuition reduction agreement, prepaying may be just the thing. However, Uncle Sam may tax the amount of college tuition you save in this program as if it were income. If you enter into one of these programs, get all the details first. To find out about them, call the bursar of the college that interests you.

The reality is you will not rely on any one form of financial aid. You will probably get your children a combination of loans, grants, private money and scholarships. Staying on top of all the help that is available is your best approach.

While there is no guarantee that all the resources listed in this section will be available when you need them, they are the current leaders in the field of making up for lost time where college is concerned.