In theory, financial aid funds are supposed to go to those who need the money the most. In reality, financial aid dollars flow to those students and families who best understand how the financial aid process works. Here are some key points to remember:

* Don't forget. Higher education in America is big business. The college is trying to get you to pay the most money; but you are trying to pay the least amount. It can be very costly to assume that the college is going to show you how to get the most aid. As a college financial aid administrator quoted in the New York Times once said, "Parents and students sometimes forget that we work for the school, not for them." Indeed, articles in national publications have reported that a majority of private colleges are now hiring consultants and using various criteria to determine the smallest amount of aid they need to give in order to get students to attend their school. If you are just going to fill out the aid forms and then sit back and hope for the best, you're likely to be shocked and disappointed when the financial aid offers arrive in the mail.

* Don't initially rule out any school as being too expensive. The amount of financial aid you are eligible to receive is based on the relationship between two items: the "cost of attendance" and the "family contribution". The cost of attendance represents the sum of tuition and fees, room and board, books, transportation, and an allowance for personal expenses. The family contribution is the amount of money the college expects from the family for the student's education in a particular year. If the cost of attendance is greater than the family contribution, you have demonstrated "need" and are eligible for financial aid. So in theory once the family contribution is determined, the greater the cost of the school the more aid you are eligible to receive.

* Plan ahead. Just like your tax return, eligibility for financial aid is based on the student's junior year. To increase your chances of getting the most aid, if appropriate, make the necessary changes to lower your family contribution. Certain reductions in discretionary income items could increase your "need". You should also consider making the appropriate changes to assets, debts, certain expense items...

* Keep on top of the aid process. Financial aid doesn't just happen. You get rewarded for paying attention to details and utilizing a proactive approach to the entire aid process.

* Concentrate on the big money. The federal government, the state governments and the colleges themselves award the bulk of financial aid funds. Scholarships that are awarded by corporations, foundations, community groups and other organizations represent only a tiny piece of the financial aid pie. Unfortunately, many families mistakenly concentrate their time and energies pursuing those " little known scholarships" that supposedly go unclaimed each year.