By Sarah Breckenridge
October 30, 2002

STARING DOWN THE BARREL of a $100,000 college tuition bill can make even the stablest of parents feel like going berserk. Some, desperate to come up with the cash, really do start acting crazy. Last fall a Chicago consultant admitted to generating phony tax returns, underreporting income for hundreds of area parents so they could finagle more financial aid from their kids' colleges. This August a Los Angeles minister was indicted for allegedly showing families how to bilk the federal aid system. His purported strategy: Have the kid tell 'em he's an orphan. Even Hollywood is smelling the college desperation. In this fall's intellectually challenged Tom Green vehicle, Stealing Harvard, an uncle knocks off a liquor store to pay his niece's Ivy League tuition.

Hey, perhaps it's crossed your mind. Tuition hikes keep on coming, even in these lean times. Make that especially in these lean times. Just as your own college fund has been whacked by the stock market plunge, many schools are feeling the same pain in their endowment and alumni giving rates.

But there's no need for banditry. There's still plenty of money available through legal, conventional means. In the 1999-2000 school year (the most recent data available), a full 55% of all undergraduates received some sort of aid. Even families with incomes as high as $150,000 can sometimes qualify for need-based aid. Plus, merit-based aid is on the rise. Schools traditionally considered "second tier," such as Denison University and Lake Forest College, are eager to raise their student profile by offering tuition discounts to lure bright kids.

So chances are, plenty of colleges are willing to cut a deal for your kid. You just have to know how to play the game and start early, as in the beginning of high school. Your first-year package will depend greatly on financial moves you make during your child's junior and even sophomore year. That's why we've put together this step-by-step guide to maximizing your chances for need- and merit-based financial aid. By the time you're done, you'll be such an expert that you'll be ready to go through the process all over again when the bill comes due for the next school year.

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