If your son or daughter has started to shop for a college, you could be in for a serious case of sticker shock. The average cost of a private university is over $20,000, per-year. Add an inflation factor, and you could be looking at costs of over $100,000 for a four-year degree.

Congress has given families better ways to save for college costs; the Economic Growth and Tax Reconciliation Act of 2001 improved and expanded options like the state-sponsored 529 College Savings Plans and the Coverdell Education Savings Account. Anyone planning for the educational future of a young scholar would be wise to consider one of these tax-advantaged ways to save.

If your child is already in high school, however, even the best of these plans may lack appeal. John J. Leahey, CPA/PFS, CFP, a partner with WebsterRogers LLC, shares some money-saving strategies for those starting to eye an alma mater.

“As children get closer to college age, in tenth or eleventh grade, start to think about forms,” advises Leahey. There are no better forms to start with than financial aid forms, like the FAFSA (Free Application for Federal Student Aid). FAFSA will determine the family’s expected contribution toward college costs and the student’s eligibility for financial aid.

Leahey stresses financial aid forms should be completed with care to qualify students for maximum financial aid entitlement. Not only does financial aid mean parents pull less money out of their own pockets, it often makes the difference between students who enroll in the college of their dreams and those who must settle for a second choice.

By reviewing these forms early and enlisting the help of a financial or educational planner/advisor, strategies can be put into place that put the family’s financial situation in the most advantageous light possible. For example, a business owner may be able to restructure the family business for more favorable exposure on the form. Even if you don’t own a business, consulting a professional is a good move since these forms ask for exacting information about family assets and income.

Leahey cautions that the first FAFSA form submitted is usually considered the default form and the “burden of proof” is on the family for any changes made on subsequent forms.

Savvy college shopping can also significantly lower college costs. Leahey says, “Even if a student really wants to go to one particular school, he/she may need to apply to another for leverage. Apply to at least one state school to have leverage for a private college.”

In fact, some sources suggest that college-bound students should apply to at least six colleges. Knowing that a prospective student has other bids on the table may entice a college to make a more financially appealing offer.

According to Leahey, most colleges have discretionary funds and grants (some based on need and others on merit) at their disposal, and often use these funds to close the gap between their costs and lower costs of state-supported colleges. “Many schools will negotiate their financial aid plans,” he comments.

Also, be aware that a college’s “sticker price” is rarely its true cost. To keep lecture halls filled, colleges consistently award grants and discounts to incoming freshmen. Factoring the school’s average award amount into the cost of its freshman year reveals a typical student pays far less than the advertised price for the first year of college.

When it comes to college costs, everyone asks the same question, “What will I have to pay?” The answer hinges on how well you do your homework. And remember, if you don’t have all of the answers, it’s a good idea to get a tutor.

To obtain more information about this and many more topics, contact the nearest WebsterRogers LLP office in Florence, Myrtle Beach, Georgetown, Charleston, and Sumter.