May 2026 Client Profile

The Thompson family faced a familiar challenge: funding their daughter Mia's four-year degree at a public state university, with annual costs reaching $28,000, totaling over $112,000.

They started early and regularly contributed to a 529 college savings plan. By Mia's senior year of high school, the account had $38,000, supported by consistent $4,000 yearly deposits and years of tax-advantaged growth.

Mia applied aggressively for aid. She received a $9,000 need-based Pell Grant, $3,800 in federally subsidized loans, and two private merit scholarships totaling $5,000. Her campus work-study job contributed $3,200 annually.

The parents took an $18,000 federal Parent PLUS loan at a fixed rate, planning to refinance if rates dropped later. They also redirected discretionary spending — vacations became staycations, and dining out became rare — to free up $6,000 annually.

Through disciplined saving, maximized grants and scholarships, part-time work, and modest borrowing, the Thompsons covered Mia's education without crippling debt. The experience reinforced a key lesson: early planning, open family conversations, and exploring every funding option turn an intimidating expense into a manageable shared goal.

Client Profile is based on a hypothetical situation. The solutions discussed may or may not be appropriate for you.