10 financial aid pitfalls
By Christina Couch • Bankrate.com

In a perfect world, the largest slice of the financial aid pie would go to the neediest students. In reality, it goes to the savvy students who have successfully mastered the financial aid planning and application process.

To help you avoid getting shortchanged, here's our guide to the top 10 most common financial aid pitfalls.

Expert advice Score more free-money grants or low-cost federal student loans by heeding this advice from financial aid experts who know the business well.

10 financial aid mistakes to avoid 1. Not applying at all 2. Applying early 3. Planning too late 4. Overlooking scholarships and grants 5. Forgetting the family 6. Paying for free dough 7. Believing all loans are made equal 8. Earning too much 9. Neglecting your aid officer 10. Ignoring alternative aid

1. Not applying at all
It sounds like a mistake that's too obvious to make, but students collectively miss out on millions in both federal and private aid each year because they don't apply.

According to the American Council on Education, an increasing number of low- to moderate-income families -- 1.8 million to be exact -- missed out on monetary help from Uncle Sam because they did not complete the Free Application for Federal Student Aid, or FAFSA, which is required to qualify for federal, state and some institutional financial aid awards. ACE estimates that approximately 1.5 million families who were qualified for the Pell Grant, an award of up to $4,310 per year that does not have to be repaid, disqualified themselves from receiving a check by not filling out the appropriate paperwork.

The situation gets worse on the institutional level, says Brad Barnett, senior associate director of financial aid for James Madison University. He cites missed deadlines, incomplete paperwork and miscommunication with a school's financial aid office as the top reasons students do not receive campus-based aid awards.

"The FAFSA form is where the aid process starts, but there could be lots of other forms the student needs to fill out, and to figure out what those forms are, students need to ask," says Barnett. "The procedures for applying for scholarships are going to be a little bit different for each school, as are the priority filing dates. If you miss a priority filing date, you could miss your financial aid."

To make sure you're applying for aid through both the federal government and your college or university, Barnett recommends submitting your FAFSA form as closely as possible to Jan. 1 of the academic year in which you plan to enter college and directly asking your financial aid office about other requirements you'll need to fulfill to qualify for awards.