How to Fund Your Child’s College Education Without Losing Your Peace of Mind
If you’re a parent beginning to think about college costs, you are not alone—and you’re in good company.
At some point, many families find themselves looking at the rising price of higher education and wondering: Where do we even begin?
Here’s what I tell families: college funding isn’t just a financial decision—it’s deeply personal. It’s tied to our dreams for our kids and our desire to support them while also safeguarding our own future.
Whether your child is entering high school or preparing to hit “submit” on college applications, here are some key questions and strategies to consider as you build your college funding plan. We’ve also summarized a few highlights below.
Start with Financial Aid
- Complete the FAFSA – Even if you don’t think you’ll qualify, it opens doors to federal, state, and institutional aid.
- Understand Your Student Aid Index (SAI) – It’s calculated based on your income and assets—but your child’s income and assets carry more weight than yours.
Explore Grants, Scholarships & Loans
- Scholarships & Grants – Start early. Look online, at your child’s school, through community or professional organizations.
- Federal Loans First – Consider Direct Subsidized, then Unsubsidized, then PLUS Loans. Private loans should be your last stop.
- Special Programs – If your child is going into teaching or public service, they may qualify for programs like the TEACH Grant or Public Service Loan Forgiveness.
Family Contributions & Gifts
- Direct Tuition Payments from Relatives – These don’t count toward gift tax limits.
- Grandparent-Owned 529 Plans – These now don’t reduce financial aid, so they’re a great tool to use throughout college.
Tax-Smart Planning
- Education Tax Credits – The American Opportunity and Lifetime Learning Credits can reduce your tax bill if you qualify.
- Student Loan Interest Deduction – Up to $2,500/year, depending on income.
- 529 Plan Loan Paydown – You can use up to $10,000 (lifetime) to help pay student loans for each child or sibling.
Where You Save Matters
- 529 Plans – Flexible, tax-advantaged, and now eligible to roll unused funds into a Roth IRA (within limits).
- Coverdell ESAs & Savings Bonds – More restrictive but may still be helpful for some families.
- IRAs for College – Roth and Traditional IRAs can be tapped without penalty, but there are tradeoffs for aid eligibility.
Co-Parenting Considerations
- FAFSA Schools – Consider the income and assets of the parent providing the most financial support.
- CSS Profile Schools – May request information from both parents.
And If Things Change…
- Has your financial situation changed since receiving a financial aid offer? You can always appeal. Many families don’t realize this is an option—and it often is.
Final Thoughts
Like any meaningful investment, college funding starts with a thoughtful plan. The earlier you begin, the more options you’ll have—along with greater peace of mind.
And if this feels like a lot to navigate on your own, you don’t have to. I’m here to help you find a strategy that feels right for your family—so you can support your child’s future without sacrificing your own.
With care,
Kerry
CFP®, AIF®, MPH
Meath Wealth Advisors
This material is distributed for informational purposes only. Investment Advisory services offered through Journey Strategic Wealth, an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). The views expressed are for informational purposes only and do not take into account any individual’s personal, financial, or tax considerations. Opinions expressed are subject to change without notice and are not intended as investment advice. Past performance is no guarantee of future results. Please see Journey Strategic Wealth’s Form ADV Part 2A and Form CRS for additional information.
