College Planning 101: 5 Frequently Asked Questions from Parents

College planning is one of financial planning’s biggest balancing acts. On one hand, we want to give our kids the best chance to succeed in their careers. On the other hand, parents are trying to save for their own retirement.

When most people think about college planning, they think about saving. But saving is just one piece of the puzzle. The real opportunity to reduce costs comes from using a variety of college cost-reducing strategies, approaches that can make a significant difference in what you ultimately pay.

For many families, education costs will be one of the largest expenses they’ll ever face, second only to their home. The average price tag for a four-year education runs anywhere from $90,000 to $200,000 per child. And every dollar you put toward tuition is a dollar that can’t go toward your retirement.

That’s why planning ahead is so important. For any major purchase, home, car, even a vacation, you probably take steps to minimize costs. The same logic should apply to college. And the sooner you start, the more options you’ll have to protect your retirement and your long-term wealth goals.

Here are five of the most common questions parents ask when they start the college planning process:

1. When should we start planning?

The short answer: now.

Every year you wait can increase your total college costs and reduce your flexibility to protect retirement savings. Starting early means you can:

• Adjust your savings strategy with time and the power of compounding on your side.
• Research the best school options for your student’s profile.
• Learn where merit aid is likely.

2. We have a high income/net worth, does college planning still matter?

Absolutely. In fact, it may be even more important. Many high-income families pay for college with after-tax dollars, making it one of the most expensive purchases they’ll ever make. Strategic planning can uncover cost-saving opportunities that don’t depend solely on need-based aid.

3. How much does college choice impact the total cost?

A lot. Private schools often carry a premium, and out-of-state public schools can cost as much as a private education. But here’s what surprises many families: some private schools are actually more affordable than you think, especially for strong academic students.

Example:

• At Northwestern University, only 14 of 2,111 freshmen received an institutional merit scholarship, averaging less than $21,000. That still left high-income families facing a $96,000/year bill.
• At Loyola University (in the same city), 863 of 2,946 freshmen received merit scholarships averaging $23,000. For many families, Loyola’s awards made it far more affordable without sacrificing quality.

And don’t overlook in-state public schools. Not only do you get in-state tuition, but many states also offer incentives and scholarships to attract top students to their schools.

4. What’s the #1 way families can save on college costs?

Scholarships directly from the college. That’s why we use our exclusive scholarship estimator to help families learn:

• How likely your student is to receive a merit scholarship at a given school.
• How much the average award could be, and how that could free up more money for retirement savings.
• Whether test prep or retesting could boost your student’s chances.
• Which schools might offer the best scholarship opportunities (including private schools that could cost less than in-state public options).
• How to use this information to negotiate for even more scholarship funding.

5. Why balance college savings with retirement planning?

It’s simple: you can borrow for college, but you can’t borrow for retirement. Every dollar you spend unnecessarily on tuition is one less dollar that could be growing and compounding toward your future independence. That’s why having a smart plan helps you support your child’s education and keep your retirement goals on track.

Just as important, where and how you do your saving can make a big difference in what college ultimately costs. Many families are surprised to learn that the income thresholds for need-based aid at private schools are higher than they’d expect, meaning more households qualify than they realize. Getting guidance from someone who understands both college funding and retirement planning can help you avoid overspending on tuition and keep more of your money working for your future.

The Bottom Line

College planning isn’t about finding the cheapest school—it’s about finding the right school at the right price for your family’s financial situation. Whether your child is in middle school or already filling out applications, the best time to start is today.

We can help you:

• Estimate potential scholarships.
• Identify high-value schools for your student’s profile.
• Protect your retirement while funding education.

Schedule your complimentary college planning session to get your personalized scholarship report and start building a strategy that works for both your student’s future and yours.