5 things that are always on sale

The College Board says the typical private school discounts its costs by about a third, and public universities offer an average break of 14.7%. (See "Don't pay sticker price for college.")

"It is important to consider not just the net college cost, which is the difference between the cost of attendance and the financial-aid package, but also the out-of-pocket cost, which is the difference between the cost of attendance and grants and scholarships," said Mark Kantrowitz, editor of FinAid.org. "Out-of-pocket cost is a more realistic measure of the actual amount the college will cost you."

To avoid overpaying for a college education, you'll want to:

• Learn about the financial aid process and how to arrange your finances to get the best possible package. Some resources to check: MSN Money's Saving for College and Managing College Costs Decision Centers, FinAid.org's financial-aid calculator and the book "FastWeb College Gold: The Step-by-Step Guide to Paying for College." Never assume that you won't qualify for aid, Kantrowitz said; the formulas for aid are complicated, and how they're applied can vary by school. Also, changing family circumstances and congressional changes to available aid can have a big impact on how much you get. Even if you don't have financial need, you'll need to fill out the Free Application for Federal Student Aid (FAFSA) to qualify for federal student loan programs.

• Cast a wide net when researching and applying to colleges so you can uncover the schools that really want you (or your student). You can start with MSN Money's College Search engine, but also check out the Managing College Costs Decision Center, which includes articles on good values in public and private colleges.

• Make sure that if you do have to borrow money for school, you exhaust all federal student loan options first before resorting to private loans (read "How did student loans get so sleazy?" for details).

Cars and houses

Almost nobody negotiates half off a house or a car, but almost nobody pays sticker price, either. And because these are two of the biggest purchases most people make, it's worth going over the ground rules.

• Video: The recipe for bargain shopping

You know you shouldn't pay sticker price for a vehicle, but figuring out the "right" price -- and keeping to it in the face of an industry that specializes in getting people to overpay -- is a tall order. The second you drive a car off the dealer's lot, for example, it's worth only what someone will pay you for it, regardless of how big a rebate you got or how big a discount off sticker you negotiated. The closer you come to that price, the better the deal.

And even that swift bit of negotiation can be quickly erased in a few short minutes in the dealer's finance department. Similarly, you're not likely to make a bigger purchase than a home -- or have more of an opportunity to overpay.

Continued: Create a strategy

< previous |  1 | 2 | 3 | next >