If you have a child in middle or high school, it’s time to start thinking about how your family will really pay for college. Not what the brochures say. Not the sticker price. Just the honest math: what can we afford—without sacrificing our retirement or getting buried in debt?
And that question just got more urgent. On Monday, the U.S. Department of Education announced it will restart student loan collections on May 5. That means wage garnishment and tax refund seizures could be back without a court order. With loan forgiveness programs paused or blocked, families can no longer count on last-minute relief.
The smartest thing you can do? Make a plan that fits your budget without relying too much on borrowing.
Here’s how to do it.
Step 1: What Can You Afford—Without Loans?
Start with your monthly cash flow. After you cover the basics (mortgage, groceries, utilities, and retirement - yes, saving for retirement is still important and may help with financial aid), how much money is left? Multiply that by 48 months (four years of college). Then add your college savings—like a 529 plan or any money you've already set aside.
Example:
$50,000 saved in a 529 plan
$1,000/month available to help with college = $48,000 over 4 years
Student can borrow up to $27,000 in federal student loans
Total: $125,000 or about $31,250 per year
This is the annual cost you can afford without getting your family in debt (outside of that $27k a child can borrow in their name). The next step is to “scan” a universe of schools that will fit this budget AFTER merit and financial aid so your child can create a list of schools they think may be a good fit from this pre-selected list based on your budget. This can be tricky and will require some effort.
Step 2: How to bring a cost of college down to your budget - Understand financial aid, merit aid and scholarships
Use FAFSA and Net Price Calculators to estimate potential aid. File the FAFSA as early as possible. Important update: As of 2024–25, having multiple kids in college no longer increases aid eligibility.
If your child is applying to private colleges that use the CSS Profile, expect a very different aid calculation than the FAFSA. Unlike FAFSA, CSS may include home equity, retirement contributions, business value, and income from a non-custodial parent. It also weighs student-owned assets more heavily and may consider grandparent-owned 529 plans—even if no distributions are made. That’s why it’s essential to understand each school’s policy, use their Net Price Calculators, and plan your asset structure accordingly.
A family that appears “middle class” on the FAFSA may look much wealthier on the CSS Profile.
Merit aid - this is where strategy makes the biggest difference. Every college has its own criteria, and many high-income families qualify for significant merit awards. The best starting point is to “scan” your college list for schools that offer strong merit aid based on your child’s academic profile. Then build a shorter list of schools where generous merit could bring costs down to your budget range.
The old approach—compare in-state, out-of-state, and private—no longer works as a first pass. Instead, start with: What schools will offer your child the most merit money? Apply to schools where your child is in the top 25% of applicants. Use tools like Niche to estimate actual costs after scholarships.
Step 3: Legal Forms Every Family Needs
When your child turns 18, you lose automatic access to their health, financial, and school information—even if they live with you. Before they leave for college, consider having them sign:
A HIPAA form (so you can talk to their doctor in an emergency)
A Health Care Proxy or Medical Power of Attorney (to make medical decisions if they can’t)
A Durable Power of Attorney (so you can help with banking or bills)
A FERPA release (so the college can talk to you about grades or tuition)
You can work with an attorney or use online services like Mama Bear Legal Forms or Trust & Will.
Final Thoughts:
Starting with what you can afford—instead of where your child dreams of going—isn’t limiting. It’s empowering. It gives your student a clear, supported path forward and protects your financial future. Because the best college plan isn’t about chasing prestige. It’s about financial clarity, stability, and peace of mind for your whole family.
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