Hello Denise,
I'm one of those "organized moms." I now have two in elementary school, but in previous years, when my children where in different schools, I, too, found it overwhelming. Papers drive me nuts!
Mail/newspapers- I have a recycle basket right by my front door. When the mail comes, I do not put it down. It takes me 15 seconds or less to go through the mail. Junk mail that does not have personal information gets dropped right in. My shredder is hidden under my computer desk so I have a small pile next to it on a constant basis. All bills/important things go right on my desk. I have a bill organizer right behind my computer so the opened bills go there.
The outer envelopes of bills and the little papers that come inside them go immediately to the recycle basket. (I pay most of my bills online, so I have a pile of the return envelopes to use for other things.)
Newspapers-I only buy newspapers for the coupons. I don't have time to read it, but I want to recycle it. So, as soon as I have emptied the newspaper of the coupons, it, too, goes right into the recycle basket.
When this recycle bin is full, I take it to a location close to my home that has a paper retriever - http://www.paperretriever.com/ Most often they are at schools and churches and they are used as a fundraiser. You can find one close to you by looking here: http://www.paperretriever.com/form/search_us.asp?ID=267 I have found that I can easily just stick the recycle basket in my car as I am running different errands and I'm helping the environment. Everything that can be recycled gets recycled.
SCHOOL PAPERS!
I have found that if I empty their folders from school daily, it helps cut down on craziness.
Since the kitchen is the central part of our house, I have bins. One for each child. I know that I don't need 2 copies of things (they are at the same school) so most times I'm recycling things (in the recycle basket at my front door). I do not save everything, but want a place to put their awards, special drawings, etc.
At the end of the school year, I buy an under-the-bed plastic storage container (1 for both of the kids) and label it with their names, teachers, year and school with a sharpie. It eventually joins the others in the attic from previous years. I use one bin for both children to cut down on space.
As you can see, I'm a neat freak. :) I just want to make sure I save the important things they do. It helps me stay involved with their school activities, fundraisers, etc.
I know that most people would not do what I do, but it's the system that works for me. You could also do one bin for all the children and just sort them at the end of the year.
But when you sort your papers immediately, it does cut down on the chaos.
If I can help any further, please let me know!