Why Divorced Parents Should Start Planning For College Costs Early

Planning for your child's future is always a priority, but when you're a divorced parent, the financial and emotional stresses of paying for college can feel even more overwhelming. Starting the process early can not only ease this stress but also help you and your ex-spouse save significant amounts of money. This blog will outline the reasons why divorced parents should begin planning for college costs as soon as possible and offer helpful tips to navigate the financial aid and scholarship process.

As a divorced parent, you've likely already navigated a variety of challenges regarding your child's well-being. College planning is another crucial step in ensuring their future success, and the sooner you begin, the better prepared you'll be for the financial road ahead.

Understanding College Costs Early Is Essential

Divorced parents often have additional complexities when it comes to paying for their child’s education. Knowing the expected costs of college early can help you avoid last-minute financial surprises and allow for a smoother transition into this significant life event. Some colleges consider both parents' incomes for financial aid calculations, while others may only consider the custodial parent's income. Understanding these policies will allow you to plan accordingly.

Separate Finances, United Goal: Your Child's Education

Even if you and your ex-spouse don't always agree on every aspect of parenting, college is likely a shared priority. Early planning allows both parents to get on the same page when it comes to finances, ensuring that your child benefits from a united front. Divorce settlements and child support agreements may not always account for college costs, so it's vital to have a separate plan dedicated to saving and budgeting for this significant expense.

1. The Earlier You Start, the More You Can Save

College costs rise every year, and waiting too long to start saving can lead to significant financial pressure when your child is ready to enroll. By starting early, you can gradually build up savings and take advantage of investment options like 529 plans or other tax-advantaged college savings accounts. Divorced parents may also need to set up separate savings plans, which can make early action even more crucial.

2. Understanding Financial Aid for Divorced Parents

The financial aid process can be confusing, especially for divorced parents. The FAFSA (Free Application for Federal Student Aid) and CSS Profile take different approaches when determining your family’s financial contribution. FAFSA typically uses only one parent's income, while some private schools (and a few public universities) using the CSS Profile may require financial information from both parents. The earlier you start, the more time you'll have to understand which parent needs to file and how each college calculates aid.

Additionally, the timing of your divorce could impact your financial aid eligibility. Changes in income or custody arrangements should be considered when planning your strategy, as these factors can influence the amount of aid your child is eligible to receive.

3. College List and Cost Projections

Every college your child applies to will come with its own cost, from tuition to housing, fees, and books. Building a college list early allows you to research these costs and project what you'll need to budget for. Some colleges are known for generous financial aid packages, while others may be more expensive overall. Early planning gives you time to help your child explore colleges that align with your family's financial situation.

FAQs for Divorced Parents Planning for College Costs

Q: How do divorced parents decide who will pay for college?

A: Ideally, this is determined through open communication between parents. Some divorced parents divide the cost evenly, while others base the division on income. If it wasn't covered in your divorce settlement, it's important to establish a plan early.

Q: Can divorced parents fill out the FAFSA together?

A: Typically no. Only one parent’s household should fill out the FAFSA. This is typically the parent who provides more financial support for the child.  This does not mean that it is automatically the parent who pays child support that completes FAFSA.  

Q: Will a remarriage affect financial aid for my child?

A: Yes, if the parent who provides more financial support for the child remarries, the new spouse's income will be included on the FAFSA, which may impact the amount of aid your child receives.

Closing Thoughts

As a divorced parent, planning early for college costs is not just smart—it’s necessary. With the right approach, you can ease the financial burden and give your child the best possible start in their college journey. Don’t wait until senior year to begin the conversation. Start planning today, and both you and your child will feel more confident about the future.

Vicki Vollweiler is the founder of College Financial Prep, helping parents and students navigate the complexities of financial aid, scholarships, and college planning. Specializing in assisting divorced and separated parents, Vicki offers personalized consultations, financial aid strategies, and more to help families save money on college costs. Learn more about College Financial Prep’s services here. https://www.collegefinancialprep.com/