Myth: Our income is too high to qualify for financial aid.

The only way to know for sure is to fill out the Free Application for Federal Student Aid (FAFSA).

The federal government has a formula that considers a number of factors — including number of college-age children, income, and children’s assets — to determine the amount a family is expected to contribute to a child’s college costs.

Any costs above that can be covered by financial aid or low-interest government or private loans.

One more reason to fill out the FAFSA: Some schools will not consider applicants for college grants and scholarships if they have not applied for federal aid.

Myth: We have money saved for our child’s college education, so we won’t get any aid.

Not necessarily. The federal formula has allowances for savings and assets. You are not expected to sacrifice your home equity or retirement savings to pay for your child’s education.

Only a small percentage of parental assets are expected to be contributed for education.

Myth: Our daughter wasn’t eligible for financial aid last year, so our son entering college this year won’t be eligible either.

On the contrary: The number of family members in college has a big impact on your financial aid eligibility.

Myth: Our child will be attending college part time, so he won't be eligible for financial aid.

Financial aid is available for part-time students. Ask your college's financial aid office for information on aid for part-time students.

Myth: There isn’t enough aid for everyone.

The amount of federal aid available for college students increases every year. Over $78 billion was budgeted in 2006 for more than 9 million students. This does not include billions in state and private scholarships and grants that colleges administer or award themselves.

Myth: You can get more federal money by shifting your assets around.

Almost anything you do to lower your Estimated Family Contribution (EFC) will have an impact on your personal income, assets, and taxes.

Don’t bother with financial strategies that may result in tiny increases in financial aid (and may be offset by higher taxes or lower asset levels). Instead, focus on getting your taxes done early and correctly.

Dig around and get the truth from reliable sources. High school counselors and financial aid administrators are professionals who are there to help your family.

What you need to know: Apply for aid, no matter what you think your chances are.