2026 tips for how to pay for college

Whether your college-bound student is starting college this fall, next fall or the one after that, there are steps you can take in 2026 to help your child get their degree without sabotaging your savings or retirement.

Here are some things to keep in mind based on when your child will be starting college.

Starting in fall 2026?

Families often don’t realize that, when they’re filling out the FAFSA (Federal Application for Federal Student Aid) for fall 2026, the income information will be from 2024; in other words, the tax return they filed in 2025. That’s water under the bridge and there’s nothing they can do about reported income and assets that may impact financial aid eligibility.

But that’s also just one year. You hope your student will be in college for four years, so you still have three years to make modifications in adjusted gross income (AGI). The 2025 tax return you file in April 2026 will form the basis of the 2027-28 FAFSA.

So that’s Tip No. 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 making 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 you’ve been thinking about. The FAFSA excludes retirement accounts and home equity as factors in financial aid eligibility.

Students heading to college this fall will start receiving their financial aid offers in April, or even earlier if they applied for early decision. These letters will tell you how much financial aid the college is awarding, what the family’s expected contribution is, and how to apply for a loan to cover the balance. But that’s not necessarily the end of the story.

For example, financial aid offers can be appealed because of a documented change in the family’s circumstances. So far in 2025, more than 1.1 million people have been laid off in the U.S., the most since the pandemic. A family’s income may go from $200,000 when both parents were working to $90,000 after one of them loses their job. Although the FAFSA has been finalized, the college can manually adjust the application to lower the student aid index, or what the family is expected to pay.

Unexpected medical expenses are another reason for an appeal. Just keep in mind that any appeals must be validated by pay stubs, termination letters, hospital bills and any other documentation you can gather.

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 adjusted gross income, the 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 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 your 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 sophomore still has two years to identify their passions and interests and build a high school résumé 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 student 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 you will pay for it. Educate yourself on the financial aid process, Pell grants, and how your student can maximize grants and scholarships — money that doesn’t have to be paid back. Fun fact: There are more than 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 your child is starting college.

• Brian Safdari, who founded College Planning Experts in 2004, is a Certified College Planning Specialist. His team has assisted more than 7,500 students nationwide using their exclusive My College Fit System and financial planning tools. For more information, call (818) 201-4847 or visit collegeplanningexperts.com.