Here are eight things parents of college-bound students should know as a 2009 financial aid season fraught with economic concerns begins:

• Apply ASAP: Parents should fill out the Free Application for Federal Student Aid now to have the best chance of receiving aid. It is used to determine eligibility for aid and scholarships, and this year there are likely to be more applicants vying for less grant money.
• Don't rule out pricey schools: A high sticker price doesn't necessarily mean higher out-of-pocket costs, especially at schools where merit aid might be available.
• Don't forget the profile: Remember to fill out the CSS/ Financial Aid Profile, used by many private colleges and universities to determine aid eligibility. The form and more information are at http://www.collegeboard.com .
• Look at less-selective schools: While you're shooting high, make sure you are applying to less-selective schools to add to your margin of financial safety. Your student might qualify for a merit scholarship or get a good need-based package, or it may just make more financial sense.
• The loss of home equity value won't help: Household income counts the most in the aid equation that also considers non-retirement assets, number of family members in the household, number of kids in college and taxes.
• Look for scholarships online: Private scholarships may help you fill the financing gap even if your student isn't brilliant. Some scholarship search sites include http://www.fastweb.com , http://www.Scholarships.com and the College Board's Scholarship Search ( http://www.collegeboard.com ). Also check with your high school guidance office.
• Call aid offices: Don't hesitate to call the schools' financial aid offices for information on available aid or for assistance.
• Be wary of taking on too much debt: Federal loan limits have been increased, but consider the consequences of overborrowing before taking on a huge debt burden just because you can.

For more ideas, visit Grants for Individuals : Undergraduates provided by the Michigan State University Libraries Funding Center.

Source : Detroit Free Press, January 25, 2009.