Save on College by Picking the Right School

Columbia University and New York University -- which are on opposite ends of Manhattan -- offer a similar situation. While O'Shaughnessy says Columbia may provide 100% of a low-income family's needs, NYU would offer the same student about 68%, with a good portion in loans.

"You can have a smart kid and if they go to NYU, they're probably going to leave the school with a lot of debt," she says. "If they go across town to Columbia, they won't."

Students and their parents should consider these useful tips to lower the cost of tuition without tacking on enormous debt burdens:

1. Do your homework.

Figure out whether the school of interest meets the student's profile -- academically and financially.

Most schools release a "common data set," which provides useful information, including average merit award, total loans and grants and how many students receive need-based awards vs. merit-based. The College Board's Web site also has a "College QuickFinder" tool, which provides information on cost and financial aid, and lists similar schools based on other visitors' searches.

If a school simply doesn't meet your financial needs, don't be afraid to take your business elsewhere. While a different university may not be the top choice, "if you let your kid apply wherever they want, that could be a financial disaster," O'Shaughnessy says.

2. Play the gender card.

Young men are in high demand overall, since 56% of the higher-education student body is comprised of women, a figure that is projected to grow. On the flip side, colleges that are focused on engineering, math or science tend to attract more of their male counterparts.