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One of the Biggest Financial Decisions Your Family Will Ever Make

For most families, planning for college isn’t just another task—it’s one of the largest financial decisions you’ll ever make. The stakes are high, the timeline is short, and the process can feel overwhelming.

That’s why Midwest College Planning exists: to bring clarity, reduce stress, and help families make smart, informed decisions about college—without costly guesswork.

Working with families across the US and beyond, we see the same challenges repeatedly. These missteps often make college planning harder and more expensive than necessary. Here’s what to watch for—and how to avoid it.

1. Apathy: “We’ll figure it out later.”

Many families start the college search without a plan to pay for it. They assume financial aid will appear, scholarships will cover the gap, or students can work their way through school.

Unfortunately, none of that happens by accident.

College costs rise every year, and families who wait too long often find their options limited. A strong plan starts early—with a clear understanding of costs, affordability, and realistic expectations before applications go out.

2. Disillusionment: “We’re hoping for a full ride.”

We hear this all the time—and we wish it were more common.

The reality?
Full-ride scholarships are rare.

Students who receive them usually combine strong academics, meaningful involvement, and the right school fit. While merit and need-based aid are available, finding it requires research, strategy, and realistic expectations.

There is money out there—but it takes work to find the right match.

3. Choosing “Easy” Instead of “Right.”

Some families choose a college because:

  • It’s close to home
  • It’s the first acceptance
  • A friend attends
  • It feels simplest

Convenience matters—but it shouldn’t drive the decision. College affects academic success, mental health, career outcomes, and long-term finances.

Often, the “easy” choice ends up being the most expensive one.

4. The Myth of “We’ve Got This.”

We hear two common versions:

“My student will work to pay for college.”
We love a strong work ethic—but let’s be realistic. There is no part-time job that covers today’s tuition without sacrificing academics or wellbeing.

“I read a book—we don’t need help.”
Books provide information, but they don’t create a plan.

They can’t:

  • Analyze your family’s finances
  • Compare real aid offers
  • Identify colleges likely to offer strong merit or need-based aid
  • Navigate changing policies
  • Prevent costly mistakes

Information is helpful.
Strategy saves money.

How Midwest College Planning Helps

We support families through the entire process by:

  • Building a smart, affordable college list
  • Explaining the real cost of college
  • Identifying schools with strong merit and need-based aid
  • Helping families avoid unnecessary debt
  • Creating a realistic academic and financial plan
  • Supporting both parents and students every step of the way

College planning is too important to leave to chance. With the right guidance, families can make confident decisions—and protect their financial future.

Final Thoughts for Parents

You don’t have to navigate this alone.

Even though colleges are not-for-profit, they operate like a business. A thoughtful, informed college plan can save your family thousands of dollars—and countless hours of stress.

Midwest College Planning is here to help you make college a smart investment, not a financial burden.

 

How Procrastination Affects Admissions and Financial Aid

Avoiding College Planning Procrastination: Why Starting Early Matters

Preparing for college is one of the most important financial and academic journeys a family will face. Yet year after year, many families wait too long to begin the college admissions and financial aid process — often creating unnecessary stress, missed opportunities, and higher college costs.

At Midwest College Planning, we regularly see how early preparation can dramatically improve both admissions outcomes and financial aid opportunities. The good news? College planning does not have to feel overwhelming when families take proactive steps early in the high school years.

Whether your student is entering high school or already approaching senior year, understanding what to prioritize — and when — can help your family reduce stress, lower costs, and make more confident decisions about the future.

Why Families Procrastinate on College Planning

College preparation involves many moving pieces:

  • College admissions timelines
  • Financial aid deadlines
  • Scholarship opportunities
  • Standardized testing
  • Academic planning
  • Family budgeting and cash flow discussions

Because the process can feel complicated, many families delay important decisions until deadlines are near. Unfortunately, waiting too long can limit admissions options, reduce financial aid eligibility, and increase anxiety during senior year.

The reality is simple: the earlier families begin planning, the more flexibility and opportunities they typically have.

Not Starting Early Enough

One of the biggest college planning mistakes families make is assuming there is “plenty of time.”

College may seem far away when children are young, but the financial realities of higher education arrive quickly. Tuition, housing, meal plans, books, and travel expenses continue to rise, making advance preparation increasingly important.

Starting early allows families to:

  • Build realistic college savings goals
  • Understand expected family contributions
  • Explore scholarship opportunities
  • Develop an admissions strategy
  • Avoid rushed financial decisions later

Even families with high school juniors or seniors can still benefit from strategic planning. As the saying goes:

“The best time to plant a tree was twenty years ago. The second best time is now.”

Waiting Too Long to Strategically Position Assets

College funding differs from retirement planning in one major way: the timeline is much shorter.

Retirement investments often have decades to recover from market volatility. College funding usually needs to be available within a four-to-five-year window. That shorter timeline makes strategic financial planning extremely important.

Families who wait too long may miss opportunities to:

  • Position assets effectively for financial aid consideration
  • Reduce unnecessary borrowing
  • Improve cash flow planning
  • Protect college savings from market fluctuations

Working with a college funding advisor early can help families better understand their options and avoid last-minute financial stress.

Missing FAFSA and Financial Aid Deadlines

Completing the FAFSA is one of the most important steps in the financial aid process, yet many families underestimate how critical timing can be.

While the FAFSA itself may only take about 30 minutes to complete, colleges often have priority aid deadlines that occur much earlier than federal deadlines. Missing those dates can reduce eligibility for grants, scholarships, and institutional aid.

Families should:

  • Track every college’s financial aid deadlines
  • Organize tax and income documents early
  • Complete forms as soon as possible
  • Review submissions carefully for errors

Proper preparation can make a substantial difference in the financial aid package a student receives.

Forgetting the FAFSA Must Be Filed Every Year

A common misconception is that completing the FAFSA once is enough for all four years of college.

In reality, families must submit the FAFSA annually because aid eligibility is recalculated each year based on updated financial information and family circumstances.

Changes in income, assets, family size, or number of students in college may all impact aid eligibility. Staying organized and proactive each year helps families avoid disruptions in financial aid.

Helping Students Overcome Procrastination Habits

College preparation is not only about finances — it is also about helping students develop habits that support long-term success.

Students who procrastinate in high school often carry those same habits into college, where deadlines are less structured and accountability is lower. Unfortunately, poor time management in college can lead to:

  • Lower grades
  • Increased stress
  • Lost scholarship opportunities
  • Delayed graduation timelines
  • Wasted tuition dollars

Parents can help students build stronger habits by encouraging:

  • Consistent study schedules
  • Time management skills
  • Reduced distractions during homework
  • Accountability for deadlines and responsibilities

Developing discipline and organization before college can make the transition significantly smoother.

The Benefits of Starting College Planning Early

Families who begin college planning early often experience:

  • Less stress during senior year
  • More college options
  • Better financial aid opportunities
  • Stronger scholarship positioning
  • Improved family budgeting
  • Greater confidence throughout the process

Most importantly, early planning helps families make thoughtful decisions rather than rushed ones.

Final Thoughts

College planning does not have to become a last-minute scramble. With proper preparation and guidance, families can navigate admissions and financial aid with greater confidence and far less stress.

At Midwest College Planning, we help families create personalized strategies for admissions, financial aid, scholarships, and college affordability — helping students find the right fit academically and financially.

The earlier you begin, the more opportunities your family may have. And if you have not started yet, today is still the perfect time to take the next step.

For the latest information on college planning, admissions, and financial aid; follow us on Facebook or Twitter.

Until next month,

marc signature

 

 

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Financial Decisions that can sink your college funding plans

  • Our Blog

cost-of-college

“Well-Intentioned (Or Uninformed)
Financial Decisions That Can Sink
Your College Funding Plans”

Optimally preparing for the requirements related to future academic endeavors is no easy task… as college funding professionals who have access to the best and most accurate information regarding the admissions process, we have garnered the experience and understanding for these challenges!

However, we also know that parents can make some very damaging decisions if they make their financial decisions on their own, or if they decide to take some poor advice that would make sense under other circumstances… but NOT when considering the college financial situation. We are certain that it is important to make the best decisions with all factors being considered, and there are a number of excellent reasons for making sure that this is so.

Preparing for college funding does not always follow the traditional common sense regarding savings and planning, because simply put, the rules are different (and they tend to change a lot, making an already confusing situation even more puzzling for most people). For this reason, it makes all the sense in the world to make certain that the correct rules are being followed, and that the efforts are not going to actually turn into more of a problem later on. There are a number of things that can interfere with a family’s best efforts.

For this month’s newsletter, we are presenting some common errors made by well-meaning parents and families when managing these details. Should any questions about these college preparation subjects pop up, or other similar issues arise, please be sure to give us a call. We have all of the pertinent details in these areas and provide the beat and most current information when it comes to managing college preparation efforts.

Please make sure that you do not fall victim to these well-intentioned problems!

1. Not Understanding Exactly What The Financial Aid Offer Says

This seems like it would not be a problem, but, sadly, for many families it is. Many families will receive an aid package from a college and not fully understand the nature of the aid stated in the package. Colleges are not always very clear about making the distinctions between loans and grants and that lack of clarity can get incoming students and their parents into trouble.

Many of the packages do not fully disclose interest rates or reveal the average monthly payments, etc. This can make it very difficult for parents to understand exactly what is being offered to their child. Moreover, many parents will look at the loan offer and make the assumption that it will reduce the cost of the tuition. This is, obviously, not the case. Only grants will reduce the cost of tuition and other college fees.

This lack of clarity may or may not be intentional on the part of colleges. In many cases, mathematicians are the only ones who can fully decipher a financial aid offer and calculate the ultimate cost over time. One of the ways to solve this problems is to ask questions.

Parents should ask whether or not loans will be ‘front-loaded’ meaning that the bulk will be offered during the first year but taper off over the following years. Finding out where the loan money is originated is also important to know.

Ultimately, if it is not explicitly shown… then be sure to ask and verify the answers. It is the only safe course of action.

2. Reporting Assets Incorrectly

Many families end up ‘over-reporting.’ This means that parents will include assets on the FAFSA (Free Application for Federal Student Aid) that are not actually required on the application. Many parents will state their retirement assets and their home equity on the FAFSA when that is actually not a requirement on the form.

Look very carefully on the form to determine exactly what is and is not required. Or, better yet, ask for your help from your college funding counselor who can guide you in the right direction and help you optimize your situation.

3. Co-Signing for a Student Loan Without Full Understanding

Parents will often gladly co-sign on a loan for their son or daughter thinking that it will release them from any obligation to that loan. That could not be further from the truth. Any person on a loan is equally responsible for the repayment of that loan. If a son or daughter fails to make payments on the loan, then the repayment obligation automatically falls to the co-signer. For parents, that means that they are on the hook as a co-signer.

Many parents think that because they are not the primary person on the loan that it absolves them from making any payments on that loan. It just simply isn’t so.

It is important to understand exactly what is being signed – especially when it comes to student loans. Those obligations can almost never be discharged in bankruptcy, so students (and sometimes parents) will certainly be responsible for them.

4. Opting For a Private Loan Instead of a Federal Loan

Private lenders can be pretty tricky. Many interest rates that are advertised lately are as low as around 3%. Those low rates can look very attractive to prospective students and their parents. When compared to unsubsidized Stafford loans, which might be around 6 %, it can seem that one is getting a really good deal. That does not tell the full story, however.

The main difference with private loans is that the loans are underwritten. This means that the loan must be scrutinized by an underwriter and will often require a cosigner. The rates are often a ‘come on’ and do not reflect the actual rates that will be received after going through the loan approval process.

Another drawback is that these loans are often variable. That means that after the low introductory rate, the loan will go up in interest even to the double digits. The loans also do not have the same repayment options offered to those who get federally funded loans. The repayment process is often much more strict and that can be a strain on newly graduated students who do not have the income to make the full payments required on the loan.

5. Saving “Too Much”

The old adage, “A penny saved is a penny earned,” takes on an even stronger meaning when it comes to college funding – and the rules for college funding can even turn this saying right on its ear. Let’s say, for example, that your child has worked hard over many vacations and has $10,000 saved in a savings account under his or her name. That is just terrific, right? Well, maybe… but not so fast.

Now, there are other strategies to help work around this sort of situation legally, including continuing to save for your child’s education – but it may be worth looking into doing so under a parent’s name in another bank account. This is definitely a case where a chat with a professional college funding advisor can make a huge difference.

As you can see, making wise and prudent decisions regarding higher education financial planning – as well as college application strategies – can be an extremely challenging endeavor. It only makes sense to approach this effort teamed up with a college funding professional.

Conversations on College

Floundering in financial aid

Conversations on College

Where are those financial aid awards? That’s a question we have been asking. The FAFSA Simplification has really thrown a wrench into the planning aspect of finding the college that your student can succeed and you can afford. The latest information from the Department of Education is that the schools should begin receiving student data the first part of March. Financial Aid Awards will most likely follow a few weeks later. There are a few of the changes in the calculations that may impact families.

One change is multiple siblings in college. In the past, this was taken into account in the calculations. It is no longer a factor. Unfortunately, this will have a profound effect on families. We are curious to see how adjustments are made from the financial aid offices.

Another change is for business owners and farmers. In the past family farms and businesses with less than 100 employees were not included as a parent asset. Unfortunately the form no longer allows for that exception.

For divorced or separated families, the form is no longer filled out by the custodial parent but the one provides the most financial support. This may have a devastating effect on families who may have previously qualified for financial aid.

If you haven’t been keeping up, many schools have pushed back the commitment deadline to give families time to evaluate the awards and make the best decision. As a reminder to our clients, be sure to keep sending us the admission letters and when you start receiving your financial aid awards send those to us. We will evaluate and go over an apples to apples comparison so you have a clear idea of how much college will cost.

We don’t have a crystal ball to see if FAFSA will improve next year, however we certainly hope they are smoother.

A Hitch in Financial Aid

 

There’s a hitch in the financial aid process this year, to be honest, it is a bit of a mess. The Department of Education is updating the process. The change started a few years ago and it is taking a bit longer than anticipated to complete. As of today, the FAFSA will be available sometime in December. The new design will be streamlined. We have asked our clients to get us the necessary information by October 15.

One change in the process is the required verification for FSA usernames. Previously usernames could be created as the form was being submitted, now there is a verification period of at least 3 days. Until we see the actual forms and calculations we will not know the full impact of the changes. It has been suggested that businesses and farms may be affected. The most significant change may affect divorced/separated parents. Previously the form was filled out based on where the majority of time was spent, it has been proposed that it will take in account the parent who provided more financial support.

There are a number of schools that require a CSS-Profile. Please note, those schools are typically more selective. The CSS-Profile is available through the college board website and requires information from both the custodial and noncustodial parents. The form is a deep dive into the financials of the family. Along with the CSS-Profile, there is often a request for additional verification or information that comes via the IDOC. The IDOC is also managed by the college board website. There is a fee for the submission of the CSS-Profile report of $25 for first and an additional $16 for each additional school.

With regards to deadlines, schools are making slight adjustments in deadlines. FAFSA may be due by January 15 but the CSS Profile may have a November deadline. We are asking our families to turn in their school list by October 15 so we can meet deadlines. Our senior families will be receiving an email and mailer later this week to clarify next steps.

Financial Aid Eligibility and Family Finances

“Important Money Decisions That
Can Dramatically Affect Both
Aid Eligibility And Family Finances”

As the academic year drags on it can seem unending to students who find themselves in a seemingly endless cycle of tests and quizzes and papers and projects. The purpose of all this work, at least for those forward-thinking students who have an eye firmly fixed toward attending college or university after graduation, is naturally to continue the educational experience at the next level. However, there is a lot more knowledge that is needed to optimize this opportunity than just the class work they are completing in high school.

As college funding professionals, when it comes to fully preparing for a child’s higher education – starting with applications and admissions processes, all the way down to the details of financial preparation for the college years – we are duty-bound to remind families of the best ways to focus on both ends of this process.

Honing in on the financial aspect of college preparation involved a significant amount of different types of planning. Families who fail to do so, whether it is because they are unfamiliar with the process, or because they simply did not get around to it, will usually end up costing themselves a significant amount of money and stress in the long run. Because of this, we take our work extremely seriously.

Because the completion of a degree is a vital springboard to a young person’s success, we deem it important to help families understand the overall consequences of their financial decisions in the years leading up to high school graduation and college. You see, there are a lot of potential mistakes that families can make during the high school years that would not seem like a problem at all – UNTIL they are viewed through the lens of college financial aid and preparation! Then, suddenly, a seemingly benign financial decision can have some quite significant consequences, indeed.

With this in mind, we are using this month’s newsletter to focus on some of the more important financial decisions that can have an effect on college aid eligibility and family finances throughout the years of higher education. Remember that circumstances can vary somewhat from family to family, based on income, family size, and other considerations, so the best thing to do when reviewing money decisions in the high school years can often be to discuss them with an expert on college funding.

1. FAFSA Filing and Income Tax Return

Many people assume that one cannot file the Free Application for Federal Student Aid (FAFSA) without having first completed their income tax form. This is not the case. One is able to estimate their taxes so they are able to compete and file the FAFSA. It is actually very important to file the form as soon as possible because aid eligibility is determined on a first come, first served basis. One has the opportunity to update the tax details on the application as soon as the tax return has been fully completed.

2. Remarrying and Its Consequences on Aid

Single parents who plan on having their son or daughter having a high eligibility for aid for school may be in for a big surprise if they marry shortly before their child applies for college. The income for the new spouse will now be taken into consideration even if the plan was that the new spouse would not assume any financial responsibility for the child.

According to the Higher Education Act that came into effect in 1965, parents who have remarried must include the income of their newly married spouse and that income will be factored into the aid eligibility of the child. Not being aware of this law if a parent is counting on receiving a lot of aid may come as a shock. This is important to know and may help when making decisions about timing for big events.

3. NOT Applying For Aid (Because You Think You Won’t Be Eligible)

If you are one of the fortunate folks who are financially stable and secure, that is wonderful! The thing that you might not be aware of, however, is that your child may still be eligible for financial aid during the college years. This may only be an unsubsidized Stafford loan but this can make much more financial sense than any private loan, most of which are often loaded with more risk and higher interest rates.

4. NOT Listing Extenuating Circumstances

Life is nothing if not unpredictable, and the unforeseen can happen at any time. Someone in the family could have an accident. Or you could experience the death of a loved one. The loss of a job could be both emotionally and financially devastating. Many families who are hit by difficult circumstances feel embarrassed or unwilling to share details with their child’s future university. The important thing to know is that colleges are not staffed with insensitive robots who do not have any feelings or consideration for others.

If there have been extenuating circumstances that have occurred in your family, it is important to strongly consider sharing them with the college financial aid officer. In light of the new information, the school may want to reconsider or adjust your child’s aid package – after all, they are also vested in having their student body attend and graduate. Should you need assistance with the best way to manage this communication with an institution, a college funding advisor will certainly be able to help.

5. Buying a Vacation Home

If you are planning on buying a vacation home or other similar property, you may want to consider waiting just a few years until after college. This is because making such a purchase at the wrong time could adversely impact your child’s financial aid eligibility. Colleges will frequently look at recent purchases, like an additional vacation home, as “extra liquid assets.” This could severely affect the amount of money that your child could be eligible to receive, so it is important to make these kinds of major purchases on the proper timeline.

6. Taking Out an Equity Loan

Taking out an equity loan may seem like the right choice in the short term, but this could have a deleterious effect on your child’s ability to receive funds. Regardless of where the money comes from, these extra funds will appear to the financial aid officers as if there’s a substantial amount of cash ‘lying around’ and your child could be penalized for it as a result. This happens if the funds are taken out in a lump sum and added to the checking account. If you want to take out an equity loan, you could consider an equity line of credit – which is more akin to a credit card.

7. Managing Grandma’s Loan/Gift

Grandmas and Grandpas are wonderful. They have been known to do special and meaningful things for their grandchildren, such as providing sums of cash to help assist with college expenses. These gifts of cash, however, can have a detrimental effect on loan eligibility – especially if given at the wrong time. Unfortunately, depending on the circumstances, gifts from family members can make it substantially more difficult to receive aid.

However, if the grandparent decides to loan funds for college, they can usually do so without creating difficulties. They cannot, however, simply ‘call’ it a loan. It must be an official loan and they will need to charge current market interest rates on the loan. These funds, also, must be spent prior to the signing of the loan application. Failing to do so would result in the funds being included as an asset belonging to the student. This can be a complicated circumstance, and a college funding advisor can be extremely helpful in determining how to proceed with the generosity of relatives!

8. Including Retirement Assets

The FAFSA form will ask for the net worth of investments. They do not need to know about the assets in IRAs (Individual Retirement Accounts), 401(k), 403(b) or other pension plans. Parents who list these assets not understanding that this information is not required could seriously damage their child’s chances for receiving ‘need-’based’ financial aid funds.

9. Including Home Equity

The home equity on your primary residence is not a requirement on the FAFSA as a declaration of assets. If parents do include this information on the form this could seriously affect the ability of a student to receive needed aid. However, there are some schools (around 200) – mainly private institutions – that will ask for such information on their institutional aid forms. For this reason, it is best to do the research on the particular schools that your child will be applying to and then you can decide how to move forward. Once again, a college funding advisor can be a godsend in these kinds of circumstances.

As you can see, there are a number of considerations that can play a role in properly preparing for the college years with regard to family finances. If you would like some personal assistance in that regard, especially with consideration of your individual circumstances, we would be happy to help however we can.

Happy Spring!
Until next month,

To FAFSA or not to FAFSA?

The FAFSA opened up this morning and we’d like to take this time to go over a few basics of financial aid. First we will talk background, next process and finally some general guidelines.

The FAFSA started back in 1965 as part of the higher education act. It is a standardized approach for institutions to structure need-based aid. From the FAFSA federal loans and grants are offered. The loans are broken down by parent and student. Student loans are further divided in to subsidized and unsubsidized. If you consider taking the loan, note there is a process to apply as well as have the funds sent to the school.

The FAFSA process starts with the FSA IDs. A parent and the student need to create FSA IDs. This involves entering basic information, setting up security questions and verification. Take your time, if you don’t completely create a FSA ID, you won’t be able to begin the FAFSA. One of the most frequent questions is why does parent need an FSA ID for each child? The parent creates one FSA ID which can be used for different children who also have their own unique FSA ID.

The FAFSA is available via an app or on the web. Before you begin gather the necessary information:

  • Parent Federal Tax Forms & Supporting Documents
  • Student Federal Tax Forms & Supporting Documents
  • Account balances for liquid assets (checking/saving accounts) , investments and basic property information.

Here are things we have found useful. Always create a save key, that way you don’t have to finish it all at once. Read each question carefully. Be sure to your mobile phone number as a way to access your FSA ID so when you forget that password next year, it will be easier. And most importantly, fill out the FAFSA even if you don’t qualify for need-based aid because there are some schools who may require it for merit aid.