We like to remind students and families that there are many different paths through higher education. It's important to consider cost and return on investment in college decisions, but also important to remember that having a college degree or a certificate from a trade or vocational school will have a lasting positive impact for a lifetime. College is a great investment. But like any investment, you'll get the best return if you are smart about how you invest. Check out our Paying for College course for more information on saving for college, financial aid and being a smart consumer of higher education.

We really like this great article on the top 5 big mistakes that families make when they're paying for college from Bankrate.com. The following mistakes are directly from the article. Also check out the full article.

One of the most important points that it reinforces is that families can borrow to pay for college, but can’t borrow to pay for retirement. This accompanied with a savvy college selection can decrease the burden of college costs.

Paying for college: 5 top mistakes

1. Not filling out the Free Application for Federal Student Aid
The absolute biggest mistake parents make when paying for college is not filling out the FAFSA, or Free Application for Federal Student Aid.

The FAFSA is the key to grants, work-study programs and gift aid from a college's financial aid office. It's also required for federal student loans, such as subsidized and unsubsidized Stafford loans, and PLUS loans for parents.
The U.S. Department of Education says 41 percent of undergraduates didn't apply for federal financial aid in the 2007-2008 school year, and 2.3 million students who would have qualified for a Pell grant didn't bother to fill out the FAFSA. Why? Because it can take two to three hours, or they assume they won't qualify, says Mark Kantrowitz, publisher of FinAid.org. "But the formula changes each year, so it's worthwhile to apply every year, even if you didn't qualify for aid in the past."

2. Choosing a school that costs too much
It's important to do a real apples-to-apples cost calculation of all the colleges your child is considering. This comparison isn't as simple as deducting the financial aid package from the school's sticker price because the aid package usually includes student loans.

"You have to look at two cost comparison points -- how much is the cost minus gift aid such as grants and scholarships, then how much is the total cost with loans," says Tally Hart, senior adviser of economic access at Ohio State University. "Compare the total debt you will have to take on to graduate from each school."
The true price of paying for college is what you're paying now plus the debt you must take on over the four or five years until graduation, Hart says.

3. Taking out private loans instead of federal student loans
Parents should use all available federal loans before borrowing from private lenders, Kantrowitz says. But in the 2007-2008 school year, 26 percent of private-loan borrowers didn't take out any federal Stafford loans, and 14 percent didn't apply for federal financial aid at all, according to the Project on Student Debt, a California-based nonprofit group.

Private student loans can be tempting, thanks to almost instant approval and quick, easy online forms. But they usually have less favorable repayment terms and higher interest rates than federal loans. Unlike federal loans, private student loans are based on the borrower's credit score, and have variable interest rates that can reset monthly.

Private loans had interest rates as high as 18 percent in 2008. At the same time, interest rates on the federal Stafford loan were capped at 6.8 percent, and at 8.5 percent for parent PLUS loans.

4. Using retirement money to pay tuition
If you withdraw money from your 401(k) or IRA to pay tuition bills, Uncle Sam will not make you pay the customary 10 percent early withdrawal penalty as long as the money is used to pay qualified education costs such as tuition, room and board, and fees for you, your spouse, your children or grandchildren. But that doesn't mean it's a good idea.

You will still have to pay income taxes on all or part of the money, and you'll have less money on hand to fund retirement. The money also will count as income when you fill out next year's financial aid form, so it will reduce the amount of financial aid you will be eligible to receive next year, Kantrowitz says.

5. Using home equity to pay tuition
Home equity loans historically have been a popular way to pay for college because the interest paid is usually tax-deductible, and the interest rates are usually lower than for credit cards and private student loans. But now home equity loan rates are hovering near 8 percent -- higher than the interest rate on most federal student loans. And with home prices on the decline, the loans are harder to get.

If you get a home equity loan, that money can hurt your financial aid eligibility. Cash in the bank -- even if it came from a loan -- is factored into your expected family contribution when you fill out the FAFSA, Kantrowitz says.
Home equity lines of credit have variable interest rates, and therefore come with their own set of problems, says Brad Huffman, a Certified Financial Planner with Future Finances in Columbus, Ohio. "They fluctuate with prevailing rates, so the loan could become expensive down the road when interest rates increase."

What's more, "College funding has become one of the greatest burdens for many near-term retirees," Huffman says. "Do not create financial ruin so that Junior can go to college."