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Making Smart College Choices in Uncertain Times: 10 Tips for College Funding in 2025

Updated: Jul 22

By Liz Agather, Co-Chair/Founder, IECA College Affordability Affinity Group, Agather College Consulting, Independent Ed Consultant


College planning is always challenging, but in 2025, things feel especially unpredictable. Costs are rising, financial aid systems are evolving, and many uncertainties remain. It can feel overwhelming for families trying to find the right school for their student, academically and financially.


The July 2025 passing of the One Big Beautiful Bill will have a major impact on college funding for years to come. For most students, the biggest impact will be that the federal government will not offer parents and graduate students unlimited loans for both undergraduate and graduate education. Additionally, families with federal loans will have fewer options for loan repayment.


Within my practice, we are discussing the new policies and their impact on each student and their long-term implications. My own son called me to say that he has lost the ability to take out a Grad-Plus loan to cover his future MBA program.


Here are ten tips I share with the families I work with to help them make informed decisions amid this uncertainty.


1. Control Your Controllables

  • Think of college as a consumer purchase and investment, not just a dream. Shop wisely.

  • Figure out your family budget before you begin shopping for college.

  • Run Net Price Calculators (NPCs) before visiting colleges; although not always accurate, they can provide directional data points.

  • Taking out huge loans in the first year of college is unlikely to be the best path for most families.

  • If funding is a concern, consider alternative paths to a degree, such as community college, online programs, or employer-sponsored options like those offered by Starbucks and ASU.


2. Plan for College Costs to Continue to Rise

The past five years have been a perfect storm for colleges, marked by increased costs due to COVID-19, revenue loss, inflation, FAFSA issues, a decline in confidence in college ROI, and the impending demographic cliff. Additionally, we expect fewer full-pay international students to enroll, and the new NCAA rulings are expected to be expensive for power-four schools.

  • Do financial planning upfront and plan for costs to continue to rise.

  • Be open and honest with your student about family budget expectations and limitations.

  • Don’t assume your bright, hardworking student will get much free money. It is not that simple. Understand the difference between need-based and merit-based aid.

  • Students can chase merit money or prestige, but rarely can get both.


3. Expect More Colleges to Close/Merge/Cut Programs

  • Look into a college’s financial health before falling in love with it.

  • Pay attention to how big (or small) your student’s intended major is. Smaller programs have a better chance of being cut.

  • Rural, nonbrand, small schools may struggle more than large, popular public colleges.

  • Create a college list that includes a mix of affordable and public options.


4. Understand the New/Reduced Federal Loan Options

  • Starting in July 2026, the government will end the practice of giving parents and graduate students a blank check to cover the total cost of attendance.

  • Parents will be able to borrow up to $20,000 per undergraduate student, but the total cap will be $65,000 for each student. (Parent Federal Loan)

  • Graduate students (seeking non-professional degrees) will be limited to up to $20,500 per year, with a lifetime cap of $100,000.

  • Students seeking a professional degree will be limited to $50,000 per year, with a lifetime cap of $200,000.


5. Research Funding is Being Cut

  • Examine the amount and funding a school receives, as well as the impact of current rulings.

  • Consider private sector or internship-style research.

  • Be cautious if a college promises significant research opportunities but lacks the current budget to support them.


6. Don’t Count on Loan Forgiveness

  • Plan as if your family will repay loans in full.

  • Consider paying interest during college to keep future payments lower.

  • Research and understand the new loan repayment options.

  • Save records of all loan payments and scholarship offers.


7. Assess the Financial Health of Colleges Early in the Search Process

  • Search the school’s Common Data Set or IPEDS reports.

    • Look at trends in enrollment, tuition revenue, and financial aid over several years.

  • See what’s happening on campus—new buildings vs. deferred maintenance issues, or high use of Parent PLUS loans and discounting.

  • Research multiple sources: student newspapers, Forbes, the Hechinger Report, Bond Ratings and IRS 990 forms. See the links below for resources.


8. Increase Credit Scores Now If Loans Are Needed Later

  • Learn the pros and cons of private loans and how credit scores come into play.

  • Increase both parent/student credit scores now.

  • Keep loans to a minimum, especially in the early years of college.

  • Review your family budget first—loans aren’t the only answer.


9. Expect Delays from Financial Aid Offices

  • Submit required forms (FAFSA/CSS) accurately and as soon as possible.

  • Prepare for potential delays in responses from the federal government, as the US Department of Education has experienced significant budget cuts.

  • Be kind to college staff—they’re overwhelmed, too.


10. Research, Research, Research

Check out my additional funding blogs:

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Thank you to my amazing current and former colleagues from the IECA Subcommittee on College Affordability Committee (SOCA) for helping me with my April CAAG presentation

and concepts for this blog post.


Research costs before submitting applications.
Research costs before submitting applications.


Resources for researching the financial viability of colleges:





 

 
 
 

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