Planning Ahead for the Financial Aid Process

It's the time of year when millions of Americans hunch miserably over government forms, painstakingly filling in little boxes with the details of their family finances. No, we're not talking about taxes -- it's that unhappy season when parents fill out financial aid forms for college. Many colleges, especially private schools, require aid applications to be handed in by the spring.

If you're in the midst of this joyless process now, good luck -- it's probably too late to do much to make things easier. But if, on the other hand, you anticipate applying for aid in the next year or two, financial planners say there are a few steps you can take now that could help increase your family's eligibility for aid.

Don't Rule Out Expensive Schools

To cover your bases, make sure your child applies to several colleges. "They're going to have more of a shopping venue to compare and contrast and possibly even appeal financial aid," says Peter Laurenzo, certified financial planner and president of College Aid Planning Associates in Albany, N.Y., who's written a book on college financial aid. "When kids come in and apply to one school, they're at the mercy of the school." ...