March is supposed to bring college acceptance letters and financial aid offers, but instead, we’ve got a bit of a hot mess. First, there was the not-so-smooth rollout of the new Better FAFSA, and now Congress is talking about cutting more areas of student aid packages. If you’re a parent of a college-bound student, be sure to read this article, as it could help save your hard-earned dollars in your wallet.
So, what’s going on?
If Congress follows through on these cuts, Federal Pell Grants could shrink, and programs like Federal Work-Study and Public Service Loan Forgiveness might be on the chopping block. That means fewer opportunities for students to earn aid and more families forced to take on debt.
Student Loan Changes on the Table
Here are just a few of the ways Washington is thinking about “fixing” student loans:
Public Service Loan Forgiveness Reform
Congress wants to limit who qualifies for this program, making it even harder for borrowers to get relief.
Repealing Borrower Defense to Repayment
Repeal a Biden administration rule that made it easier for a borrower to discharge loans as a result of a school's misconduct, etc.
Eliminating Grad and Parent PLUS Loans by 2028
Not that we encourage taking out loans to cover college, but if you were counting on these loans to cover costs, that may not be the case.
Understanding Your College’s Offer
March is when most financial aid packages arrive, and that’s when reality hits parents in the face. “Wait, this is what we have to pay?!” Yep. And to be honest, that letter can be complicated if you’re not familiar with knowing what to look for.
Here’s what to look for:
Total Cost of Attendance
This should include tuition, room & board, books, and personal expenses.
Scholarships & Grants
Free money. Take it and run.
Loans
Most schools automatically offer federal loans, but remember, loans are not aid.
Work-Study
If offered, great! But it’s not guaranteed, and you’ll have to work for it.
Parent PLUS Loans
If they list this as “aid,” don’t fall for it—it’s just another way for you to go into debt.
Can You Negotiate a Better Deal?
Yes, you can! But you need to know who negotiates and who doesn’t.
State schools? Nope. What you see is what you get.
Private colleges? Many will negotiate—especially if they really want your student.
Think of it like buying a car. Savvy shoppers get multiple offers, compare prices, and use one deal to push for a better one. Colleges don’t like the word “negotiate,” but they absolutely do it—they just call it “re-evaluating financial aid.”
If you’ve got a better offer from another school, show them. If your financial situation has changed (job loss, medical bills, etc.), tell them. The worst they can say is no.
Don’t Let College Wreck Your Retirement
Here’s the truth: You can borrow for college, but you can’t borrow for retirement. Yet every year, parents wreck their financial future by taking on massive student loan debt.
Before you sign on the dotted line for a Parent PLUS Loan or take out a second mortgage, ask yourself: Can I actually afford this? If the answer is no, it’s time to consider different options.
Community college for two years
Save a ton of money and transfer later.
State schools over private schools
It's less fancy but a whole lot cheaper.
Scholarships, scholarships, scholarships
Your kid should be applying like it’s their part-time job. Get them started on these today.
Final Thoughts
Every year, I hear parents say the same thing: “I wish I had known this sooner.” Don’t wait until it’s too late to make a wise decision. The goal isn’t just to get your kid into college—it’s to get them through it without burying yourself in debt.
If you have questions about saving for your kid’s college future and need help with college planning, reach out to your financial advisor to discuss options and hear suggestions during the planning time.