• Save money in the parent's name, not the student's name.

• Pay off consumer debt, such as credit card and auto loan balances.

• Parents considering going back to school should do so at the same time as their children. The more family members in school simultaneously, the more aid will be available to each.

• Spend student assets and income first, before other assets and income.

• If you believe that your family's financial circumstances are unusual, make an appointment with the financial aid administrator at your school to review your case. Sometimes the school will be able to adjust your financial aid package to compensate.

• Minimize capital gains.

• Do not withdraw money from your retirement fund to pay for school. If you must use this money, borrow from your retirement fund.

• Minimize educational debt.

• Ask grandparents to wait until the grandchild graduates before giving them money to help with their education.

• Trust funds are generally ineffective at sheltering money from the need analysis process, and can backfire on you.

• If you have a second home, and you need a home equity loan, take the equity loan on the second home and pay off the mortgage on the primary home.

It is a good idea to familiarize yourself with some terms that you may run across during the financial aid process. Study up! The more you know, the more comfortable you'll be with your financial aid plan.