This Month’s Highlights
• Preparing to Make the Decision
• Apples to Apples
• The Clock is Ticking: Getting a Handle On Student and Parent Loan Repayments
• Financial Aid Insider: College Planning For Your Next Student
• PS: Establishing In-State Residency
Date: February 2026

Dear Parent(s),
Valentine’s Day is full of funny history, from its pagan roots (fertility smacks!) to modern quirks like millions writing to Juliet in Verona, divorce rates spiking, and men spending twice as much as women on gifts, making it a chaotic mix of romance, history, and consumerism.

We even get “vinegar valentines” (insult cards) and “wear your heart on your sleeve” (literally pinning names on clothes) from past traditions.

Fun Valentine’s Day Facts

• Divorce Spike
  Divorce filings reportedly rise around 40% annually near Valentine’s Day. Could be the reason why is the first on this list!
• Pagan Roots
  It might stem from the Roman festival of Lupercalia, involving fertility rites and women being hit with animal hides for good luck. I don’t think that would go over today!
• Secret Weddings
  Late Shoppers: About 60% of cards and gifts are bought in the 5-6 days before the holiday.
• Who Gets the Most Cards?
  Teachers receive the most Valentine’s cards each year, followed by wives/partners, and schoolchildren.

Preparing to Make the Decision
The closer National Decision Day gets, the more parents need to be prepared for what’s coming. What’s coming is the reality of what college will actually cost. And by the time the bill arrives in July, parents will have to have figured out where the money is going to come from.

It’s a fact (I can’t prove it, but I know it’s true– thank you, Bill Maher) that most parents haven’t had the “Money Talk” with their student. The money talk is explaining, “This is what we can afford, so please look for colleges that aren’t going to cost more than that. If you’re the parent of a high school senior, that ship has sailed. However, if you have a younger student, it’s never too early to have the chat while there is still plenty of time to research the options.

Let’s get back to high school seniors and what parents need to do to prepare for the admission and rejection notifications that are on the way.

Parents need to familiarize themselves with what financial aid packages look like and what they mean. Unfortunately, there are few standardized templates colleges use when presenting their aid offers, so it could take some effort to understand them. A few colleges will include the entire financial aid award. These will list the tuition and fees, and room and board. There should also be a list of costs, including books, supplies, personal expenses, and travel to and from home. Some will just show a comprehensive figure that covers all indirect expenses. Whatever way the awards are presented, knowing how to decipher them will give parents confidence in knowing what their next steps will be.

When colleges send letters of admission, they often include a merit scholarship or even multiple scholarships. This is free money your student doesn’t pay back. The amount of these scholarship will vary from college to college, especially if they’re public or private. The actual financial aid notifications will arrive in March. However, given how nervous most private schools are about getting enough students to meet their “make their class” (i.e., have enough students enroll so they can pay their bills for one more year), they could be on their way right now.

If parents plan appropriately, and their student selects a list of colleges that would be happy to have them attend, things have a way of working out. It’s also a fact– again, I can’t prove it, but I know it’s true– that students are generally very happy with where they land, and by the second year can’t imagine themselves going anywhere else.

Apples to Apples
Next month’s issue will cover appealing a financial aid award based on changed financial circumstances. Negotiating for a better aid package will also be discussed. In the meantime, let’s start with a basic primer.

After comparing the awards apples to apples (public vs private), it’s time to narrow down the choices that include the top colleges on the students’ list and the costs of each.

When comparing offers, what you are looking for is whether the award was a fair one or not. The trick is how to tell the difference. For example, College A gives a great award but still costs more than College B, which doesn’t award as much but has a lower overall price. Which is the better deal?

Then there’s the student’s academic profile. Too many students don’t even bother to check what a college is looking for in an applicant. Thusly, they are often disappointed when they don’t get in, or if they do squeak by, their parents are disappointed because their student didn’t get much money, if any. There’s more to financial aid than just the Student Aid Index (SAI)– formerly known as the Expected Family Contribution (EFC).

What no one tells parents is that preferential financial aid is, in large part, given to students who are desirable. Where does the student rank in the field of accepted students: in the top 10%, 25%, 50%, or more in the bottom half, like 75%? Many colleges use a matrix to determine which level of scholarship or grant they will offer. If the student doesn’t have the GPA or the courses that a college expects, both merit aid and/or need-based aid might be affected.

The Clock is Ticking: Getting a Handle On Student and Parent Loan Repayments
Last week the Dept. of Education abruptly reversed course on student loan collections. Initially they said they were going to start seizing wages and tax refunds for borrowers in default. At the last second, they decided to put that off temporarily for an undisclosed amount of time.

SAVE plan updates
What student loan borrowers in the SAVE plan should know for 2026. How and when to leave student loan forbearance under the SAVE plan (and when not to).

If you have loans, you may be asking yourself:
1. Should I pursue forgiveness or pay everything off quickly?
2. What about consolidating my Parent PLUS Loans?
3. Do I need to file taxes separately?
4. Should I stay in forbearance?
5. Do I need to reduce my AGI to qualify for forgiveness, or is that unnecessary?
6. Should I switch to IBR immediately or wait?
7. What about the new Repayment Assistance Plan?
8. Should I switch to that or remain on my current payment plan?

Each month, we provide you with tips on your best ways to pay for college regardless of your financial situation.

 

College Planning For Your Next Student
Depending on when you started planning to send your first student to college, you may be in an excellent position to comfortably pay for it. Whether you did or didn’t, you’ve certainly learned a lot by now.

The sooner you start the college financial planning for your next student, the better. You will have more options, and that’s what you need. Just like buying a car, you need to find the best model for you, get the best price, and know how to pay for it without going broke and having it repossessed. Colleges don’t repossess diplomas; they can, however, withhold them.

Key Steps in Financial Aid Planning
1. Estimate College Costs:
Research the Cost of Attendance (COA) for your student’s target schools, including tuition, fees, housing, books, and personal expenses.
2. The Right List of Colleges:
Not all colleges are created equal in how they determine how much they can afford to invest in a student. Someone, the student, the parent, or a college planner needs to find the best academic, financial, and social fit.
3. How to Manage The Costs:
Learning how to assess how much you can afford to pay out of pocket or from assets. Also, using financial strategies that can help you recoup some or all of your college expenses.
4. Using Self-Help Options:
Self-Help includes Loans and Work Study. By completing the FAFSA, a student will qualify for federal student loans, which haven’t changed for 2026-2027. Students can borrow up to $5,500 for the first year, $6,500 for sophomore year, and $7,500 in years three and four. An additional $4,000 is available for a fifth year. Federal Work-Study is an on-campus job and offered only to students with financial need, but many on-campus jobs aren’t need-based.

Until next month…

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