Kick off your college planning during the first two years of high school

Funding a college education requires a strategic approach, with a 529 plan as a central component. Due to rising tuition costs—2.5% for in-state and 3.0% for out-of-state at public colleges, and 4.0% at private colleges—and declining federal aid, families must prioritize savings strategies.

Over the past decade, federal grant aid decreased by 33% and loans by 36%, pushing families towards the private loan market, often at higher interest rates. An effective four-year action plan during high school is crucial for students and parents.

In freshman year, families should focus on saving in 529 plans and setting financial goals, while students work on GPA, extracurricular activities, and potentially part-time jobs. By sophomore year, parents should review the asset allocation of college savings and consider tax strategies, while students begin standardized testing and researching potential colleges.

Additionally, families should discuss educational goals to ensure expenses align with the student's chosen path, including trade schools eligible for 529 fund use.