Don't Let the Market Crimp Your Child's College Choices

(MoneyWatch) 
My college saving accounts (for my daughter in college and my son one-and-a-half years away) look like roadkill, and I bet yours do, too.

No surprise, then, that so many private colleges have seen fewer teenagers applying this year. Bloomberg reports a sampling of top colleges that have seen applications drop from 2008:

• Williams College -20%
• Middlebury College -12%
• Swarthmore College -10%

Here, however, is a sliver of good news: Colleges have not turned off the financial aid spigot. Not by a long shot.

In a recent survey of private colleges, only 8 percent said they were considering cutting back financial assistance. In fact, many colleges have increased their financial aid, according to the New York Times, because they are terrified of starting the new school year with vacancies.

What's ironic about elite schools like Williams and Middlebury taking an application hit is that they offer some of the nation's best aid packages. In fact, when a teenager who needs financial help gets into a place like Swarthmore, it's like winning the lottery. The financial aid packages are that good.

If you're wondering which schools provide the best financial aid packages, check out the list on ProjectonStudentDebt.org's website.

Expensive private schools can actually represent a cheaper deal than state schools. So the best approach in this economy is to avoid making assumptions about costs until you go out and kick some tires.