Senator Eliot Shapleigh - El Paso, Texas

 The new car can wait. So can the home computer. But not the college degree.

Families have long scrimped and saved for college. The sour economy has merely added a new wrinkle. To help smooth it out, local colleges and high schools are offering extra financial advice, and sometimes more scholarship dollars.

They report a rise in financial aid applications but say people aren't panicking.

Their stock portfolios and retirement plans may be taking a pounding, but families are not backing away from higher education, because it provides a lifelong return on investment.

"There are ways to do it. You just have to be really ambitious," said Kim Garner of Garland.

She speaks from professional and personal experience. As the secretary in Garland High School's counseling office, Garner helps students hunt down scholarships. And she has two daughters in college, with a third headed there this fall.

This year, total college costs in Texas – tuition and fees, room and board, books and transportation – average $18,000 at public universities and $30,000 at private ones. Most families try to cushion the financial blow with grants, loans and other aid.

Colleges say the demand for financial aid has been rising in recent years. Applications from Texas rose 9 percent from 2007 to 2008, according to the U.S. Department of Education. Nationally, the increase was 10 percent. Colleges anticipate even greater demand this year.

"On the one hand, that's a good thing, because we want people to be applying for federal student aid," said Justin Draeger, a vice president at the National Association of Student Financial Aid Administrators. "On the other hand, it's an indicator that as early as last year, more people were looking for help paying for college."

In a typical fall, Austin College, a small, private liberal arts school in Sherman, gets maybe 10 phone calls from families with a real or anticipated job loss, salary cut or other financial problem. This past fall, those calls probably doubled, said Nan Davis, vice president for institutional enrollment.

The recession has ushered in a hiring freeze at the college, and some construction projects are on hold. But leaders say financial aid remains a priority – more than 90 percent of students receive it – and they've asked alumni to continue donating to that cause.

"I think you're going to see colleges and universities doing everything possible to help meet those needs," Davis said.

Schools respond

Texas Woman's University in Denton is offering about $100,000 more in scholarships this semester. The University of Texas at Austin created a Web page with resources for families hit by the economic crisis, including $300 emergency loans and the "Hire a Longhorn" job bank for students needing part-time work.

Cedar Valley College in Lancaster, where many students are working adults, is offering scholarships to students who have been laid off.

High schools are doing their part, too. For the first time, Garland High is inviting parents to campus for one-on-one help filling out the Free Application for Federal Student Aid. Students must submit that document to receive any aid from the federal government, the state or individual colleges.

Where, not whether

Debbie Lee, Garland High's head counselor, said the tough economy has not changed the calculus of major decisions in a family's life. The question is still where to attend college, not whether to attend college.

"Since the cost of college has been going up, there are a lot more kids going to public instead of private, and staying in state instead of [going] out of state," she said. So the students who might have picked Duke or the University of Pennsylvania now opt for Texas A&M or UT-Austin.

Some families are deciding to send children to two-year instead of four-year colleges.

Garner, the Garland High secretary and parent, has twin daughters at Texas Tech and Sam Houston State. Her youngest daughter, Kodie, is a star catcher on the high school softball team. She plans to start her college career this fall at Paris Junior College on a full scholarship.

Garner said her three girls never considered skipping or postponing college.

"They've got to go," Garner said. "In today's job market, nobody wants someone who graduated with just a high school diploma."

Some financial aid experts say it doesn't always have to come down to two-year vs. four-year, or public vs. private. Go ahead and apply for admission to your dream schools, they urge. You might be surprised at just how much aid is available.

Many families appear to be taking that advice. Even as costs climb, so do applications for top schools.

If the best a needy family can contribute is love and kisses, they can be assured they'll receive grant money, said Henry Urick, assistant director in UT-Austin's financial aid office.

He added: "We've instructed our staff to be open-minded, open-hearted, and to the extent of our ability, open-walleted."