Year-End Checklist
With December almost here, it’s time to get on year-end tasks. If you’re among the many who want a year-end to do list, here goes!
Anywhere in the education process:
Check if you’ve maxed out your deductible 529 contribution for the year. Most states require this to be done by 12/31, though some allow you to contribute up to your tax filing.
Set up your 529 account for gifting and send the link to anyone who’s said they want to help or asked what to give you or your student for a gift.
Make a new year’s resolution to increase your college savings rate. Even if you’re only adding $10 per month more to your account, it adds up quickly. Or, find an alternative way to save such as UPromise.
Read about the impact student debt has on young adults and commit that you’re going to find education options that minimize your family’s borrowing, even if it means not attending your top-choice school.
Pick up a copy of my book, How to Pay for College, to map out your journey through the college savings and admissions process.
If you’re a high school senior (or parent of a high school senior):
Review the list of schools you’ve applied to and make sure there’s at least one that meets your budget. If not, find one and apply before the window closes!
If you haven’t already, do the FAFSA and, if needed, the CSS Profile.
Discuss what the financial aid package needs to look like from each of the schools you’ve applied to so that you can review coming offers objectively.
If your state offers free community college tuition, find out how to sign up for it. Many of these programs only allow students to sign up during senior year, but the free tuition benefit can be used at any point up until the student has completed the equivalent of two years of college. Many many students end up spending time at a community college, for many many reasons– illness, not liking the school they ended up at, family circumstances, whatever– so think of this as an insurance policy.
If you have a taxable investment account, check for any losses that you might harvest in order to reduce income.
If you’re a high school junior (or parent of a high school junior):
Make sure you have a clear understanding of your college budget. Your budget is the sum of 1/4 of your savings, the amount you (parents and student) can pay out of pocket, any contributions others will make to college costs, the AOTC if you’re eligible, and the Direct Student Loan if you intend to borrow.
Start making a list of schools you’re interested in. Then do the net price calculator for each.
Project whether your GPA is likely to earn you merit aid, including figuring out which GPA (6 semesters or 7) is the one that counts.
Make a plan for the SAT and ACT. Although most colleges are test-optional, submitting test scores can still be beneficial at many colleges. Unless you’re only applying to colleges that are test-blind (will not even look at test scores), you should plan to take at least one of the two tests.
If you have a taxable investment account, check for any losses that you might harvest in order to reduce income.
Check out my self-paced online course, The College Financial Plan Masterclass, to build out a detailed plan to get a great education at a price that works for your family.
If you’re a freshman or sophomore (or parent of one of those):
Review the FAFSA Formula to see if you should make any adjustments now, before you hit a base year.
Review your budget– savings, student contribution, ability to pay from cash flow, tax credits, gifts from others– to ballpark your annual college budget.
Review admissions and scholarship requirements for your in-state public schools to make sure you’re on track for admissions and financial aid.
If you’re a college student (or parent of one of those):
Fill out the FAFSA for next year.
Check if you need to do any retirement contributions to come under the income threshold for the AOTC or LLC.
Make any 529 distributions for current year expenses.
Best wishes for a happy and healthy holiday season!
