by KYW's Salil Gutt

There are so many quirks in the college financial aid system that a whole industry of consultants has sprung up to help families navigate.

For instance, 35% of a child's assets and 5.625% of a parent's assets come into play when determining financial aid. Excluded from calculations are family home equity and money in retirement plans. So I counsel families to use their savings to max out on retirement plan contributions and pay off their mortgage instead of specifically saving for college. This prevents people from doing something silly like buying annuities to keep assets off the fafsa forms. 

Money in Section 529 plans count as family use assets when parents fund the plan but are excluded when grandparents do the 529 plan. The message. it makes more sense for grandparents, not parents, to fund 529 plans.

And finally, divorced parents of college bound kids must report the income and assets of the custodial parent. With shared custody the parent with whom the child lived longest during the preceding year must submit the information. This presents its own planning opportunities.