When should a family start thinking about college costs? Earlier than most people expect. In tax work, I see how a decision made several years before enrollment can affect the options a family has later. Planning early gives you time to ask better questions before a deposit is due.
This got me thinking about how crucial it is to start early. And no, that doesn’t mean taking a pay cut or making drastic changes. It’s about understanding the bigger picture and knowing what options are out there. Adjusted Gross Income is one part of the aid calculation. Retirement and savings decisions can have different effects under different rules, so we should review the actual FAFSA year and any CSS Profile requirements before changing a plan.
Here is a hypothetical example: picture a family of five in the Boston area earning $150,000, with a mortgage on a $700,000 home. They can feel squeezed and still not know what aid they will see. Those numbers alone do not tell us the answer. We need the school’s costs, the applicable aid rules, and the family’s full picture. Finding that out early gives you time to compare options before a difficult decision is staring you in the face.
If a child is within five years of college, call (781) 471-4310 and ask to review the tax years behind your college plan. Bring your questions about income, savings, borrowing, and the schools under consideration.
Current aid rules: Federal Student Aid’s FAFSA guide. Questions about your family? Explore college planning.