A Parent's Guide to Financial Aid (continued)

Some colleges may have their own institutional forms, which usually carry no cost.

Keeping track

If your child is applying for aid at more than one college, it can be difficult to keep track of what has been sent where. Making a checklist of what's required at each college can help you keep track.

Also, it is very important to make copies of everything you send: the FAFSA, the SAR, your income tax forms, and any supplemental forms or information. Any organization dealing with a large amount of paperwork could end up losing or misplacing a form or two. (And things still get lost in the mail occasionally!) Having a copy in your file cabinet or safety deposit box can make the difference between a minor inconvenience and a major chore if you have to supply missing information.

A few weeks after you submit the necessary information, call the college financial aid office to confirm that your child's application is complete. That can help you identify and resolve problems faster than if you waited for a formal notice from the college.

Comparing Financial Aid Packages

As discussed above, the amount of money in a financial aid package depends on your child's EFC and the cost of the college. If your EFC is the same at each college, you'll pay the same at each college. That's one reason not to cross an expensive college off your child's list until you explore financial aid possibilities.

There are two main points to look at when assessing a financial aid package: whether the aid meets your child's demonstrated financial need, and what proportion of the package is loans versus grants and work.

Meeting financial need

The majority of colleges in the United States try to meet the full financial need of their students. But rising college costs and an increased need for aid has caused some colleges to resort to gapping.

Gapping is when a college offers some financial aid, but not enough to meet the full financial need of the student. (As described above, financial need is the difference between the college costs and the EFC of the student.) In that case, you and your child must decide if you can afford to make up the gap between the financial aid offered and the total cost of the college. In some cases, your child may be able to qualify for merit-based scholarships to close the gap. Or, your child could take on a job to make enough money to pay the difference.

If one college meets your child's full financial need and another cannot, you and your child must weigh the difference in affordability versus the attractiveness of the college for your child.

"You can narrow college choices based not only on whether the college is the right 'fit' for your student, but also on whether the college is within your affordability range," says Massa.

Weighing proportions

If all the colleges can meet your child's financial need, take a look at what kind of aid each college offers. Some colleges can afford to offer substantial grant aid (which need not be paid back); others rely more heavily on loans (which must be paid back).