Myth #3: "The school itself is the best source for information on aid."

We like Kal Chany's response to this myth: "That's like saying the IRS is the best place to go for advice on tax savings!" The financial aid officer, known as the FAO, works for the financial department, not for you. He or she is trying to get as much money from each student as possible. Meanwhile, you're trying to spend as little of your own money as possible.

Recent studies have found that as many as 65% of private colleges and 27% of public universities engage in what is known as financial aid leveraging. This is a process used to determine how little aid the school can award per student and still get the student to enroll.

How do schools get away with this practice? By simply not telling you the many ways that you can manipulate your assets to show need. Is that dishonest? We're not saying hide your assets in a Swiss bank account. We're saying take advantage of the strategies available to you. (For more details, see The Dolans' Guide to Qualifying for Financial Aid.)

And you don't have to accept the FAO's aid offer as final either - even if he or she tells you that federal regulations prevent the school from giving you any more. Chany tells us that, at least in some instances, such a statement is a bald-faced lie.

This is not to say that negotiating for more aid will get you what you want, but it's sure possible. You might have some clout if, say, you have a daughter who has been accepted at two schools with comparable academic standards and reputation, and School B has offered a larger financial aid package, but she really wants to attend School A. Then you can go to the FAO at School A and explain that your daughter would really prefer to accept their offer, but you just can't afford to turn down School B. It will help a lot if your daughter is a highly desirable student to School A. Excellent grades and achievements go a long way in giving you the upper hand.

Up Next: Myth #4 & Myth #5

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