Join us as we dive deep into college planning, including how to pick your perfect college, reduce how much it costs, and maximize the financial aid available to you with college planning expert Jack Wang.
Uncover the insider strategies that can dramatically reduce what you pay for your child’s college education with Jack’s unique insights from his meetings with college admissions and financial aid directors across the country. Jack explains how and why every institution approaches aid differently — and how knowing that can help your family gain more leverage over the college selection and funding process.
In this episode, Eric and Jack walk you through:
- The importance of starting college planning in freshman year of high school (not junior year!), as starting sooner can open up significantly more financial opportunities
- The critical difference between maximizing aid and optimizing how you pay for college
- Why flexible savings strategies often outperform traditional 529 plans
Jack also shares advanced tax strategies including leveraging appreciated stock, accessing the American Opportunity Tax Credit, and why aligning your child’s extracurriculars with their intended major matters more than you think.
Whether you’re a high-income earner wondering if you’ll qualify for any aid at all, or a parent just beginning to think about college costs, this episode provides actionable strategies to help you play the college financial aid game and come out on top.
KEY TAKEAWAYS
1. Start planning for college financial aid earlier than you think: Begin college financial planning by freshman year of high school to maximize aid opportunities, not junior or senior year when most families think they should start touring schools or looking into scholarships and aid options. Remember that college choice has big implications in this process, too!
2. Know that every college handles aid differently: There’s no universal formula that all universities follow. Each institution has its own approach to financial aid and scholarships based on their values and objectives. Families and students should seek to understand the approach to aid and scholarships of the particular schools they are considering.
3. Keep college savings dollars flexible: While 529 plans are designed for college savings and do offer tax benefits, you probably want to avoid locking all the funds you’re setting aside for college costs into 529 plans. Having flexibility in non-college-specific accounts can actually help you qualify for more aid without penalties.
4. There are two distinct, and critical, questions for parents and students to answer when it comes to planning for college costs. As part of your planning strategy, you’ll want to understand:
- How to maximize aid to bring down costs
- What’s the best way to actually pay for college (including advanced tax strategies)
College planning is like buying a car, in that there are different pieces of the puzzle to navigate and the order in which you do that matters. First, you’ll want to negotiate the best price (maximize aid). That will help you then determine the optimal payment method.
5. Align your child’s extracurriculars with their intended major if you can: For top-tier schools, your child’s activities should demonstrate genuine interest in their planned field of study, starting as early as middle school.
6. Advanced strategies exist for high earners: Even families with significant income can reduce college costs through strategic use of appreciated stock, timing, and tax credit optimization.
Ready to create, use, and enjoy money for life? Request a complimentary consultation with us at BYH and discover how to optimize your investments, reduce your tax burden, and grow your wealth: https://beyondyourhammock.com/schedule