I would suggest instead that parents spend some time on the College Confidential website financial aid & scholarship forum:
http://talk.collegeconfidential.com/financial-aid-scholarships/ The parents on the forum have tons of experience with these issues. A day or so spent perusing those threads (even some of the older ones) is a tremendous education in the realities of funding a college education.
I do not agree that the "money has dried up" for college scholarships. But you have to be savvy about how to go after it. There are several strategies; one we used very effectively for my oldest D (junior in college at a private LAC) was applying to schools that give good merit money where your kid is near the top of the applicant pool. She also gained some smaller amounts of scholarship money from organizations she had been active in (eg, scouts).
You still might decide to use a scholarship service after spending the time online, but you can do this yourself, too.
