At this time of year, college acceptance letters are beginning to arrive, and so are the tuition bills. For those considering financial aid packages from different schools, it may not be too late to negotiate. THAT MONEY SHOW invited Kristin Davis of KIPLINGER'S PERSONAL FINANCE magazine to give us some tips.

WHAT IS FINANCIAL AID?
Financial Aid is assistance from a college or from the federal government for families who cannot afford the full cost of tuition, fees, and room and board. It comes in the form of grants (essentially free money), loans (which must be repaid), and work study (usually in the form of a campus job).

HOW MUCH WILL MY CHILD RECEIVE?
To find out your child's eligibility, you must file financial aid forms -- the F.A.F.S.A. for public schools, or the PROFILE for private schools -- which detail your family income, assets, and other financial points. The information will be analyzed and used to determine your family's expected contribution to your child's education.

CAN I APPEAL?
For parents of students who have just received acceptance letters to colleges, who are now looking at the tuition bills and wondering how they're going to pay for college, it is possible to negotiate with the school's financial aid office in the form of an appeal. You may ask them to reconsider their decision about how much aid your child qualifies for if:

1. your financial condition has changed since your child first applied, including a job loss, a cut in pay, high medical expenses, a divorce, even investment losses;
   
   
2. you feel there may be factors or extenuating circumstances that weren't considered the first time you submitted your application;
   
   
3. you have received a better financial aid offer from another school about equal in prestige, and you feel you can use their offer as leverage. Be careful with this approach. Be friendly, and don't make demands.

HOW CAN I AFFORD A REALLY EXPENSIVE SCHOOL?
The more a school costs, the more financial aid you will likely qualify for. Remember that your expected contribution does not change based on the cost of the school your child chooses. If your expected contribution is $10,000, and the school's tuition is $10,000, you probably won't get any financial aid. However, if the school's tuition is $30,000, your child will probably qualify for $20,000 in financial aid. So, the more expensive school may be just as affordable as the less expensive school.

WHAT MISTAKES SHOULD I AVOID?
Remember that your finances will be evaluated to determine your family's expected contribution. Starting in your student's junior year of high school, you must carefully watch your finances to avoid events that will affect your financial aid formula. For instance, avoid taking any big capital gains distributions from investments. A good financial planner will be able to help you avoid pitfalls. Remember, you'll have to continue watching your finances until your student has finished college.