6 Strategies to Control College Costs for High Income Families When FAFSA Doesn’t Help
Copper Leaf Financial Associate Wealth Advisor Jackie Thibeault has published a new article on LinkedIn to address a topic that is top of mind for many parents who are considering the funding their kid’s college education: 6 Strategies to Control College Costs for High Income Families When FAFSA Doesn’t Help.
With the rising cost of college, even high-income families are feeling the financial strain of sending their children off to school. Colleges and Universities are expected to cross the $100k price point mark for the first time in the next 1-2 years. While high income earners may not be eligible to receive any need-based financial aid, there are other strategies to consider that can lessen the burden of higher education costs.
1) Have The Money Talk Early
Before your child begins applying to schools, it is important to have the money conversation and set reasonable expectations early. You may want to ask yourself the following questions:
How much would you like to contribute?
How much do you currently have saved and how much can you comfortably put towards college expenses out of cash flow monthly?
Are you comfortable taking out any parent loans? How much are you comfortable with your child borrowing on their own?
Begin working with your student to understand if certain price ranges might be out of budget and what they can expect you to contribute. Basic education on the impact of student loans and estimated payments after school is also crucial for them to make an informed decision on the school they choose.
2) School Selection Matters
In-State Public Schools typically have much lower tuition than out of state or private schools. However, if you have multiple children that will be in college at the same time, private schools that take the CSS profile may prove to be more advantageous with your aid offered. The CSS profile, unlike FAFSA, provides a discount for families with multiple enrolled children. Encourage your child to apply to multiple types of schools and see who has the best offering to you from a financial standpoint.
3) Negotiate!
Many people assume that when they receive their financial aid packages from colleges that is the end. However, it might be beneficial to follow up with financial aid departments afterwards. If you feel there are extenuating circumstances that are not reflected by questions on FAFSA or the CSS profile, be sure to provide them. Additionally, if your student was offered a greater amount of aid elsewhere, you might consider sending that information over and inquire if the school will match the offer or if they are able to provide anything else.
4) Look at Early College or Community Colleges
Encouraging students to take Advanced Placement or Dual-Enrollment courses can help them earn college credits while they are still in high school. This can reduce the number of credits needed to graduate, potentially shortening the time spent in college and lowering costs. Doing the first 1-2 years of their desired degree at a community college and then transferring credits to a four-year institution can also result in large cost savings.
5) Explore Merit Based Scholarships
While your student may not qualify for need-based aid, many colleges and organizations provide scholarships for students based on achievements in academics and athletics. Their guidance counselor should be able to provide information on any scholarships to apply for locally as well as nationally. You can also contact the financial aid departments at the schools they are applying to and learn more about the merit scholarships that they offer.
6) Seek Professional Financial Advice
High-income families benefit from consulting with a financial advisor who offers education planning. A professional can provide personalized strategies to maximize savings and minimize costs. Here at Copper Leaf Financial we engage both parents and children in the college planning process.
By implementing these strategies, high-income families can better manage the financial burden of college education and ensure their children receive a quality education without compromising their financial stability. Click here and learn more about how Copper Leaf Financial can help you and your family reach all of your financial goals.
Recipients should not act on the information presented without seeking prior professional advice. Check with your advisor about your specific situation or contact Copper Leaf Financial at 802.878.2731.
Click here to read the original article as published in LinkedIn.
By Jackie Thibeault, Associate Wealth Advisor, Copper Leaf Financial
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