Back-to-school tips for students’ parents

Whether your college-bound students plan on going next year or the year after, there are steps the parents can take to help the child get their degree without sabotaging their savings or retirement. Here are some tips for you to share with them.

If they started in fall 2026

Families may have been surprised that the income information for their fall 2026 FAFSA (Federal Application for Federal Student Aid) came from 2024; in other words, the tax return they filed in 2025. That’s water under the bridge.

But that’s also just one year. The student will be in college for four years and there are probably other kids at home, so they still have three years to make modifications in adjusted gross income (AGI). The 2025 tax return filed in April 2026 will form the basis of the 2027-28 FAFSA.

So that’s Tip #1 for fall 2026 college freshmen and their parents: Think ahead to the sophomore, junior and senior years of college and position income and assets to improve financial aid eligibility. This varies widely, not only by state but also institution.

This may require larger 401(k) or IRA contributions to reduce AGI;  transferring savings accounts from the student’s name to the parent’s, which are assessed at a lower rate; or burning some savings by paying down the mortgage or buying that car they have been thinking about. The FAFSA excludes retirement accounts and home equity as factors in financial aid eligibility. 

Starting college in fall 2027?

This year’s high school juniors are making their final decisions on which colleges they want to apply to. In addition to focusing on AGI, parents may want to investigate transferring savings to a liquid annuity because these are not reported on the FAFSA. There are annuities specifically designed for families paying college tuition, without early withdrawal penalties. Be sure to remind them to work with a qualified college planning specialist.

It’s also time for the students to be strategic about what they want to study and which colleges are competing for those students. Let’s say a high school junior has their heart set on becoming an engineer. Which colleges have a strong focus in that major?

This may require looking beyond public colleges and universities and even outside your state. Very often, private colleges will offer grants and institutional aid to students they want to attract. And when the financial aid offers start arriving the following year, a student may be in a strong position to negotiate their financial aid package.

Starting college in fall 2028?

Good news! Your high school sophomores still have two years to identify their passions and interests and build a high school resumé that will make them stand out to a college admissions official. This could include extracurriculars, job shadowing or summer employment, all of which can help your students write a strong admission essay.

It’s also not too early to look those potential tuition bills and college expenses in the eye and start figuring out how families will pay for it. They should educate themselves on the financial aid process, Pell grants, and how the student can maximize grants and scholarships – money that doesn’t have to be paid back. Fun fact: There are over 150 different strategies to help maximize grants.

College financing is not a one-size-fits-all proposition because every family is dealing with different circumstances. Working with a financial planner who is a fiduciary and has expertise in college planning is the best bet – no matter when a child is starting college.

Brian Safdari, who founded College Planning Experts in 2004, is a Certified College Planning Specialist™. He and his team have assisted more than 7,500 students nationwide on their college journey using their exclusive My College Fit System™ and financial planning tools. For more information, call 818-201-4847 or visit collegeplanningexperts.com.