San Francisco ? Confronting the thought of paying for college is daunting enough when a child is born. It’s far worse 16 to 18 years later when parents realize they didn’t give it enough thought — or effort — for years.

Scholarship award letters are making their way to eagerly awaiting high school seniors. Countless parents are certain to be disappointed in the sums provided.

Yet there are several strategies to help overcome college-financing shortfalls. Whether you lost a chunk of college savings in this bear market or underestimated what it will take to send your child to school, take heart. Your home, your community and the college itself may provide you a financial lifeline in the nick of time, experts said.

The first place to look to drum up additional college funds is the student’s school of choice, said Michael Gaer, a financial planner in Rochelle Park, N.J.

Many students are approaching a May 1 deadline to accept university admissions offers, and those rallying for a more lucrative financial aid package are wise to negotiate and use other schools’ offers as leverage before they agree to attend their first-choice school, he said.

“Schools aren’t going to publicize it, but if they want the student badly enough, they will match if not do better than the competitor’s financial aid award,” Gaer said. “The worst that they’re going to do is say no.”

Colleges are especially apt to consider upping the ante if there’s a documented financial hardship such as a job loss, extreme medical expenses or caring for an aging parent, he said.

Many families looking for a quick fix are wise to steer clear of the stock market, which has caused many state-sponsored 529 college savings plans to falter, said Charles Failla, a certified financial planner at Raymond James Financial in New York.

Even FDIC-insured interest-bearing savings accounts are yielding little because interest rates are at a 40-year low, he said.

“There’s really no good way to do short-term investing in anything more aggressive than a CD or short-term bond,” Failla said. “Unfortunately, the rates of return on those are really horrible right now.”

Americans shelled out $18,273 on average for a four-year private school in the 2002-2003 academic year, up 5.8 percent from last year, according to the College Board. Four-year public schools were easier on the pocketbook but still cost $4,081 on average, a 9.6 percent jump from last year.

Still, there’s a big difference between list price and the actual cost of attending, Gaer said. In fact, seven in 10 students attending four-year schools pay less than $4,000 for annual tuition and fees, the College Board said.

“Never discount a school by its price tag,” Gaer said. “It’s not the cost, it’s what you pay. More times than not, a private school will cost less than a state school.”

Among the strategies financial experts recommend for supplementing near-term college funds are:

• Ask the school to boost its award offer. If the financial aid office can’t help, see if the individual department can pitch in anything.
• Look into a private scholarship online and in your local community. The College Board at www.collegeboard.com and FastWeb at www.fastweb.com offer a clearinghouse of scholarship information, Gaer said, noting that scholarship sites should be free of charge. Don’t forget to pound the pavement for obscure awards and grants in your own back yard from organizations such as the Rotary Club.
• Ask about payment plans that stretch obligations over the school year. Many schools will structure interest-free, 10-month payment plans for a $50 annual fee, Gaer said.
• Parents can ask schools or banks about obtaining a Parent Loan for Undergraduate Student or PLUS loan, or alternative loans. The best attribute of the PLUS loan is its accessibility, Gaer said.

“As long as you have decent credit, you can get this loan…. Bill Gates could get this loan.” Parents are wise to borrow as much in the child’s name as possible so the student can take advantage of the student loan tax deduction, which phases out after $130,000 of income, he said. Student loans typically have flexible and income-sensitive repayment plans as well as forbearance provisions.

• Borrow against your house. “If you have some equity in your home, that’s a great way to do it,” Failla said, noting that houses have appreciated rapidly in many parts of the country in the past few years, affording many an opportunity to tap one of the most accessible forms of loans. “As opposed to saving $200 a month for the last 15 years, you can take out a home equity line of credit for $25,000 and repay it over the next 15 years for about 200 bucks” assuming a 5.5 percent interest rate, he said. Gaer, however, is more cautious. “I would only recommend it if parents are comfortable and they have to realize if something happens to them, creditors don’t care if it’s for college. They will come after your home.”
• Ask wealthy family elders for a helping hand through the 529 college savings account’s more generous gift tax exemption. Federal law limits tax-free gifts to $11,000 a year per beneficiary, but parents and grandparents can give up to $55,000 a year if the money goes into a 529, Failla said. “The 529 allows you a five-year acceleration on the gift exclusion,” he said, noting that such gifts can reduce estate tax liability as well. Failla suggested approaching the ticklish topic by saying ‘Have you done anything for your estate planning, Mom and Dad? If you haven’t, here’s an idea.'”