Recently, Harvard implemented additional financial aid for students from middle class families, with incomes ranging from $120,000 to $180,000. The maximum annual costs for such students are now limited to 10% of income. Which means $18,000 maximum per year. The annual costs of Harvard education, including tuition fees, lodging and board, is about $45,600. Other Universities and institutions are following suit, and college costs are, thankfully, expected to go down steeply in 2008 and onwards for the next few years.
Step2
You would still be in need of about $20,000 a year, to fully provide for your child's education. This is where a college savings plan will help you, not only in terms of available funds for college, but also in terms of tax benefits. All contributions and earnings in a 529 college savings plan are fully tax free. Even withdrawals, so long as the money is used solely for college education, are fully tax free.
Step3
Another way is to open a Roth IRA. This will provide the same tax free withdrawals, and also allow you to use the funds for other purposes, in case your child does not need the funds for college, while preserving the tax break.
Step4
In summary, if you want to ensure that your children are able to pick the best college to fulfill their dreams and nurture their talents, allow them to choose an institution where money is not the deciding factor. You can do this by starting a college savings fund today.
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How to Finance College Education
Novice 
