Since Laura Monte was a child, her parents had assured her that if she did well in high school, the family would find a way to pay for college. Now, things are not so certain.

The Southern California family had socked away money in stock funds that grew to $45,000. Scott and Pam Monte figured that the investments, coupled with their dual income, would pay for four years of college. Then the stock market crashed, and the college fund dropped by half.

That led to difficult family discussions and a change in Laura's application plans, replacing costly East Coast private colleges with California public universities. "It's really stressful," said Laura, a senior at Tesoro High School in Orange County's Rancho Santa Margarita.

"It's hard to talk about money with your parents, when your parents come to you and tell you they might not be able to pay for your education."

As they face looming college application deadlines in a soured economy, many families are grappling with how personal resources and financial aid could affect decisions on college. The economic downturn, with parents' job losses and investment declines, is adding an extra layer of anxiety to what can be a stressful chapter of family life even in a booming economy.

"It is the most uncertain college admission year we have had in a very long time," said Terry Hartle, senior vice president of the American Council on Education, a higher-education group based in Washington, D.C. "I think it's a very worried and troublesome time."

Because many deadlines for private college applications are in mid-January, it is too early to say exactly how the financial climate will affect where students apply and ultimately enroll. But guidance counselors and education experts expect the average student to seek insurance, of sorts, by applying to more schools than usual and having more public schools in the mix.

Hartle and other officials said they didn't expect many students to forgo college or not to apply to private campuses. Yet, when crunch time comes in April and May, families will weigh acceptances, financial aid and their own resources with more than the usual scrutiny, they said.

"I think the term 'hedging your bets' will define the admission cycle this year," said David Hawkins, director of public policy at the National Association for College Admission Counseling.

For some families, like the Montes, the stock market decline shook long-held plans. Laura, who wants to major in broadcast journalism, dropped the idea of applying to Boston and Syracuse universities and other East Coast schools. Her first choice now is San Diego State University, Scott's alma mater; her second is the University of California, Santa Cruz. She added applications to California State University campuses, too.

Financial aid "would have been an afterthought in the past. Now, of course, it's very front and center," said Scott Monte, who is a senior vice president of marketing for a mobile technology company. He attended a college financial aid class for parents last week; the annual workshop had twice as many attendees this fall as last.