Filling out the FAFSA or the PROFILE can be tricky. You need to fill out these forms carefully; financial aid staff will use them to determine what you and your family can afford to pay for college.

Here are some tips to help parents avoid mistakes that could cost them thousands of dollars:

• Don't list IRAs or 401(k)s. These are retirement funds and are to be used when you retire, not to pay for college. So, don't record them as investments on the forms.
• Don't forget about medical expenses. Financial aid forms have different rules for recording medical expenses than tax returns do. Report all health insurance premiums and out-of-pocket expenses for co-payments and medical purchases.
• Report everyone in your family. If you are providing 50% or more of the support for an adult child who lives in your house (even if that child is working), that person counts when you record the size of your household.
• Be careful to correctly estimate the value of your stocks, bonds, and mutual funds. Report what an investment is worth today, not its original purchase price.
• Don't overestimate the value of your house. Since you can't predict if your house will go up or down in the future, it may be best to report the assessed value of your house, rather than what houses are selling for in your neighborhood. And, don't forget to reduce that price by 8%, which is the commission and related costs you'd have to pay if you sold your place.