By Kathleen Kingsbury

"We couldn't figure how what the 'right' numbers were," says Bill, a lawyer from Madison, Wisconsin. "And we ended up with no real money in the end."

With their son about to start college in the fall, he adds, "We just feel we can find a way to be smarter."

Across the country this month, millions of other students and their parents are also navigating the complex world of applying for financial aid. January 1 marked the annual launch of the season as the U.S. Department of Education released the Free Application for Federal Student Aid (FAFSA) forms that applicants must complete to compete for federal, as well as state and institutional aid.

With a college education more expensive than ever (tuition and fees alone averaged $28,500 at private institutions for 2011-2012, College Board data shows), there are few families today that can afford not to tackle the FAFSA.

"Savvy consumers can minimize the financial burden of higher education by maximizing the amount of aid they go after, and there's a lot of money to be had," says Haley Chitty, spokesman for the National Association of Student Financial Aid Administrators. "Applying is well worth the effort - if you put in the time and hard work, it will pay off."

In recent years, many families have looked at their income levels, decided they wouldn't qualify for aid, and avoided applying altogether. Experts say this is a mistake.

Barry Sysler, a Pennsylvania-based college and financial aid consultant, likes to tell the story of a former client whose income was more than $250,000 - he had one daughter already in college and triplets starting in the fall.

"He thought he would definitely be denied, but with four children in college, he had some real demonstrated need," Sysler says.

Sysler convinced the man to fill out the paperwork and the family received a $10,000 award from the elder daughter's school, Northeastern University. "That's a lot of money to just walk away from."

What goes into the expected family contribution, as determined by FAFSA and schools, can be confusing. The expected contribution is heavily weighted toward income, but other assets count, including cash on hand, savings accounts, trusts, CDs, stocks and investment properties. Primary residences, family-owned businesses and most retirement plans are excluded. Additional children in college can lower the expected contribution