Paying For College - After The Stock Slide

When you see Philip Schaffer in his high school theater class, you know performing on stage is exactly where he wants to be, CBS News correspondent Ben Tracy reports.

"I can't imagine myself doing anything else and being happy with it," Philip said.

He hopes to start college next fall at NYU in New York City - the theater world's biggest stage.

"He wants to give acting a chance and we support it," said his father, Jeff Schaffer.

But finding that dream is now a struggle for his parents. Jeff works for a non-profit developing affordable housing. Reina is a teacher. The recent Wall Street meltdown shrunk their college savings accounts by 30 percent.

"Before, it wasn't an issue too much but now we see we might not get to the dream school that you want, because of the finances," Reina said. "To me that's sad. It hurts."

In a poll out Monday, roughly half of parents say recent economic events have changed the way they will pay for college and they are limiting their child to less expensive options.

"So our income is going down, college is going up," said Jacqueline Gazetta, a college financial planner. She says in these tough times parents can save thousands in college costs.

"There are a lot of colleges out there that are perfect for a student that might have a lot more money and parents need to really open their minds up to picking the right school for the right kid," Gazetta said.

While public and community colleges are generally cheaper, private schools often offer more financial aid.

But to get any aid at almost any school, you have to fill out this government form. It's free and online.

But you may want help from a college financial planner, because families lose thousands of dollars in aid each year filling it out incorrectly, according to Fafsa.ed.gov.

If you qualify, consider using low-interest government loans first, to give your college savings investments time in the stock market time to recover.

If you've lost your job, contact the school directly. Many schools offer emergency loans to needy students.

As a last resort, you could withdraw money from an IRA.

The Schaffers are simply saving everything they can.

"It means the budget will be tight for the foreseeable future and we're not retiring any time early," Jeff Schaffer said.

And they know that getting Philip through college may be the most difficult role of their lives.

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Since when is it a parent''s responsibility to put a child through college?

Philip seems like a healthy young man. Why isn''t he joining the armed forces in order to pay for his college?