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How to Pay for College?

Your Second Growth Newsletter

July 2019

With the back to school season starting next month, this is a great time to discuss education planning. The cost of college is soaring, so thinking about how to pay for college may feel like a daunting task. At Cypress Wealth Services, our mission is to bring confidence and clarity to your financial life. Many of our clients have children or grandchildren that will one day attend college and we frequently get asked how they can help. In this month’s Your Second Growth Life Newsletter, we discuss education planning ideas to help ease the burden of paying for higher education.

What is FAFSA?

The Free Application for Federal Student Aid (FAFSA) is a form completed by current and prospective college students (undergraduate and graduate) in the United States to determine their eligibility for student financial aid. This (free) form can determine a student's eligibility for a myriad of grants and aid for all income levels. Also, the information you report determines eligibility for federal subsidized and unsubsidized loans, which can be very affordable alternatives compared to other types of loans. Students often dismiss the idea of financial aid for college because they think their parents make too much money. But, in 2019, families earning as much as $180,000 per year can be eligible for some form of help, so for most, it’s worth applying. We found a great article that outlines how FAFSA works. Click here to view the article.

Click here to view the FAFSA website.

When Should You Start Planning?

Our best advice is to start planning sooner rather than later. The greatest advantage you have is time, and even saving a small amount monthly can make a big difference in the long run. We have attached an interactive guide from Fidelity. It educates you on the four most commonly used savings accounts, the pros and cons of each, and even discusses their impact on financial aid. If you don’t know where to start, this guide is a great place. Click here to read.

What Can 529 Funds be Used for?

This is probably the most often asked question we get regarding 529 plans. A common misconception about 529s is that 529 assets can only be used to pay for college tuition. Another misconception is that 529s can only be used at an in-state college or university. We found a good article that discusses the topic. Click here to view the article.


We can help you or a loved one plan for college. If you have any questions, please call us at 760.834.7250 or contact us here.