Failure to Believe that you qualify for Financial Aid. Many parents are under the misconception that if your family income is over $50,000 you will not be eligible for Federal Aid. This is often not the case. Assuming ineligibility may cost you thousands of dollars every year your child is in school.

Overstating asset values or including assets on the financial aid form that can legally be excluded may either reduce your financial aid eligibility or result in receiving no financial aid.

Failure to fill out financial aid forms accurately. Omissions, incorrect answers or misinterpretations can eliminate or reduce your ability to receive aid.

Failure to file forms in a timely manner. Each individual school has a priority filing date. It may be as early as Jan. 15 or as late as May. Missing deadlines often results in aid reductions.

Failure to have assets positioned properly to avoid potential large reductions in aid. Certain investments and accounts are excluded from the financial aid formula.

Failure to address special considerations. Events such as a death in the family, separation, divorce, loss of job or earnings, medical expenses, etc. can impact aid eligibility.

Failure to correctly differentiate between independent and dependent status. One must be aware of how each of these categories is defined. The determination of the family contribution toward college costs is calculated differently in each of these situations.

Failure to use current regulations and application forms. The federal government revises the formula and applications on an annual basis. Often, parents and students are unaware of these changes,which may result in the loss of aid.

Failure to file new applications for financial aid each year. Each year a student should re-apply for aid. Someone who has previously applied and been denied aid may have aid eligibility in the subsequent year.

Financial Aid scares people. While it can be complex it is not insurmountable. Start early, go slowly, read the small print and seek professional advice. The price you pay may be small compared to what you receive.