The more they figure you're desperate to attend, the less likely it is they will improve your package, because they figure you'll go anyway,

By selling now, you can lock in losses and reduce your child's 2001 tax bill, ... And your college savings will grow faster with the tax treatment in a 529.

[Keep in mind, too, that the aid process is] a business transaction, ... They're rationing the money out to meet the college's needs and get the kids they want to get.

If you paid down credit-card debt that would reduce the net value of your savings.

[Plus,] the better students tend to get better packages, ... If they feel you can contribute more to the university as a student academically, musically or whatever, then you don't have to contribute as much financially.

In the end they have the same amount of money but not to the financial-aid people.