How to pay for college

#90: It’s back to school season, and that means it’s also the time of year for high school seniors to start agonizing over college applications.

Applying to college is an anxiety-filled rite of passage for high school seniors, but it’s often just as anxiety-inducing for parents who bang their heads on how to pay for it.

That’s because paying for college is, for many families, the biggest single expense they’ll have for their child. It’s also often the second biggest life expense a family will incur, right behind buying a home. Paying for college is like buying a Tesla Model Y and giving it away. Every year, for four years.

So this week, I chat with my friend Ann Garcia about how to pay for college. She just wrote a new book on this topic, which we discuss in detail, along with important new updates to the federal financial aid process (FAFSA) + key things to know about 529 plan rules.

We discuss:

• Why Ann decided to write this book now, what makes it different
• The mind-boggling cost of college today; forecasted cost in 15 years
• Why college costs so much now, what’s driven up the cost in recent decades
• Goals that colleges are trying to accomplish with their financial aid awards
• Things parents should do to prepare their child and finances for the cost of college from birth to high school
• Why it’s important for your child to do the official campus tour for colleges they’re interested in
• Recent key changes and updates to the FAFSA process
• Difference between 529 savings plans vs. pre-paid tuition plans vs. Private College 529
• Mechanics of 529s: roll-over-ability, qualified expenses, taxes & penalties for non-qualified expenses, how scholarships are handled, changing beneficiaries

Check it out here:

https://hackyourwealth.com/how-to-pay-for-college

Have you been through (or will soon go through) the college financial aid process? What’s been the most confusing or frustrating aspect? Let me know by leaving a comment.

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Related links:

• Book: How to Pay for College: A complete financial plan for funding your child's education
• Online course: The College Financial Plan Masterclass - 20% discount exclusively for HYW subscribers (use code: HYW20)
• TheCollegeFinancialLady.com
• 529 college savings plans: rules, tax benefits, & qualified expenses (HYW026)
• College financial aid tips and strategies, with Ann Garcia (HYW053)
• College student financial aid changes coming to the FAFSA application (HYW079)
• Schedule a private 1:1 consult with me
• HYW private FB community

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