A Cautionary Tale: Megan’s Story
Megan did everything right—she had an outstanding GPA, high test scores, rigorous coursework, impressive extracurricular activities, and strong leadership skills.
Her parents encouraged her to apply to any school she wanted, assuring her that they would “figure out” how to pay for it. With her stellar academic profile, Megan applied to several top institutions, including one with a Cost of Attendance of over $90,000 per year!
She got in! But there was a problem—her family didn’t qualify for need-based aid, and the college she chose didn’t offer any merit-based aid.
Excited about the prestige of the school, Megan enrolled. By the time she graduated, she and her parents had a combined student loan debt of over $200,000.
The Costly Mistake Many Families Make
Thousands of families follow the same path as Megan’s parents:
✅ Let their child apply anywhere without financial considerations
✅ Hope for financial aid to come through
✅ Experience sticker shock when the financial aid award is far less than expected
Faced with guilt and pressure, parents often take drastic measures:
🔹 Borrowing large amounts with no clear repayment plan
🔹 Tapping into home equity or taking out second mortgages
🔹 Using retirement savings, forcing them to work longer than planned
The hard truth? Most families lack knowledge and guidance on how to get the best price for college. Many are drawn to brand-name schools without evaluating the actual return on investment (ROI).
This is why creating a college funding plan—before even submitting an application—is crucial.
The #1 Factor in College Affordability: The College List
Parents MUST lead the college selection process—because they have the most to lose.
Surprisingly, the most important factor in making college affordable is starting with the right list of schools. Parents should be involved before the list is created—and certainly before it is finalized.
If money is a factor (which it almost always is), parents must engage early and set expectations.
Why You Need to Have the College Money Talk
Talking about college costs before applications are submitted:
✔ Sets expectations for both parents and students
✔ Helps prioritize and strategize the college selection process
✔ Ensures realistic discussions about affordability and return on investment (ROI)
Parents must be honest about what they can afford, while students should seriously consider the long-term value of their degree.
Questions to ask as a family:
📌 Will an expensive private school result in significantly higher earnings?
📌 Would a more affordable school allow for less debt or no debt at all?
📌 How does graduate school factor into the equation?
Having a financially responsible college plan isn’t just about paying for four years—it’s about planning for life beyond college.
How to Start the College Money Talk
🔹 Start Early – The sooner, the better.
🔹 Set Goals – If you haven’t saved enough (or at all), start now. Focus on practical and realistic goals, and involve your child in the process.
🔹 Establish Expectations – Discuss values, learning styles, and school priorities (majors, in-state vs. out-of-state, career goals, etc.).
🔹 Encourage Open Communication – Listen to your child’s input while providing financial context.
🔹 Seek Expert Guidance from a College Funding Professional – Keep in mind that college counselors focus on admissions—not funding. Most lack the expertise to help families determine financial aid eligibility or funding strategies.
***Remember: There are no scholarships for retirement. Parents must avoid sacrificing their own financial well-being.
How I Help Families
I work with families to develop a tailored college funding plan that aligns with their financial situation and goals. My process includes:
✔ Providing estimated financial aid awards – Before submitting a single college application, I help families understand the amount of financial aid they can reasonably expect to receive. This gives them a realistic picture of costs upfront, helping to eliminate schools that are unaffordable before students get emotionally invested.
✔ Assessing the potential costs of schools on their list – so they aren’t surprised when financial aid packages arrive.
✔ Determining financial aid eligibility – helping families understand how much need-based and merit-based aid they might qualify for.
✔ Exploring available funding resources – including scholarships, grants, and other financial aid options.
✔ Estimating out-of-pocket expenses – so families can determine how much they may need to contribute or borrow.
✔ Developing a realistic plan to cover costs – ensuring families make financially sound college decisions without unnecessary debt.
By identifying affordable options early, families can avoid last-minute disappointments and emotional decision-making. This prevents students from spending time and effort on applications (essays, recommendation letters, interviews, etc.) for schools that may ultimately be out of reach financially.
The Reality of College Planning
Despite college being one of the biggest financial investments a family makes—second only to buying a home—I see common mistakes:
❌ Spending too little time on the planning process
❌ Starting too late
❌ Relying on misinformation from non-credible sources
❌ Assuming things will “work themselves out”
❌ Failing to seek expert advice
Many parents feel obligated to say “yes” to expensive colleges because they want the best for their child. But skipping the college money talk can have serious financial consequences—especially when borrowing is involved.
Thinking Beyond College: The Big Picture
Before committing to a school, families should ask:
✔ What happens if my child drops out or transfers?
✔ What if it takes longer than four years to graduate?
✔ How does graduate school impact costs?
College planning isn’t just for parents—it’s a financial literacy opportunity for students.
This is the perfect time for students to:
- Learn budgeting basics
- Understand student loan debt
- Develop smart financial habits
Final Thoughts: Proactive vs. Reactive Planning
College planning is one of the most important aspects of financial planning, alongside retirement planning.
A well-thought-out college strategy directly impacts a young adult’s career trajectory, earning potential, and financial future.
By taking a proactive approach—rather than a reactive one—families can avoid costly mistakes, reduce stress, and set their students up for long-term success.
***Start the conversation today. Your future self will thank you.