By HT Partners LLC – Family Wealth Strategies for Life
As the summer comes to an end, rising seniors will begin to finalize their college applications and narrow down the colleges they hope to attend. For families comes the dreaded process of figuring out how to pay for it. Typically involves decisions as to what, if any, financial aid is available. While many picture "need-based" programs designed for those with lower incomes. In turn, this often leads higher-income households to assume there's nothing available for them, and to skip filling out forms like the FAFSA altogether. That could be a costly mistake.
Here's why: completing the FAFSA not only determines eligibility for federal loans and state grants, but many colleges require it for institutional merit awards, even for wealthy families. Leaving it blank can mean leaving money on the table.
Understanding Merit Aid
Merit aid is awarded to students who meet specific academic, leadership, or extracurricular criteria. Unlike need-based aid, it's not tied to income or assets, meaning a student from a wealthy family could still receive a substantial tuition discount. The challenge? It's not always obvious where merit aid is most generous. One of the best tools is the Common Data Set, a public document that every college produces. In Section H-2, families can see what percentage of students receive merit aid and the average award. A simple search for "XYZ College Common Data Set" can uncover valuable insights.
• Highly selective schools often offer little to no merit aid — demand is already high.
• Strong but lesser-known institutions may provide very generous awards, creating a decision point: prestige at full price, or value with significant aid.
Example:
• College A – Sticker Price $75,000 | Merit Aid $30,000 | Net Cost $45,000
• College B – Sticker Price $65,000 | Merit Aid $10,000 | Net Cost $55,000
In this scenario, the "cheaper" school actually costs more out of pocket.
When Money Is No Object — But Merit Still Matters
Some families have the means to pay for any college outright. Even then, merit aid is worth considering:
• Signal of Value – A merit award reflects how much the school wants your student, often indicating stronger support and opportunities.
• Preserve Capital – A $100,000 merit award over four years means $100,000 remains in your portfolio, compounding for retirement, philanthropy, or future generations.
• Psychological Impact – Students who receive awards often feel more invested in maximizing their education.
• Skin In The Game – Students who receive awards are required to meet GPA targets. While the extra pressure can be difficult, it also teaches accountability and discipline.
Paying full price when awards are available can leave real wealth on the table — something even affluent families should avoid.
College Tours: Beyond the Brochure
Choosing the right school isn't just about cost. Visits should begin early in students' sophomore and junior years. Campus visits reveal whether a student will thrive academically, socially, and personally. Families should evaluate:
1. Size & Setting – Large university vs. smaller college experience.
2. Distance from Home – Travel costs and independence vary widely.
3. Campus Culture – Talk to students, attend a class, and sample dining.
4. Support Systems – Ask about tutoring, internships, and career services.
5. Hidden Costs – Housing, travel, and fees beyond tuition can add up quickly.
Balancing Fit, Cost, and Long-Term Impact
At HT Partners, we believe the "best" school isn't always the most famous name; it's the one where your student graduates on time, with minimal debt (or none), and is positioned for long-term success.
The reality is that the net price after factoring in merit and need-based aid can differ dramatically from the published sticker price. Evaluating offers through both a financial and personal lens protects your family's wealth plan while giving your student the right environment to succeed.
College Funding Checklist
Use this quick checklist to stay organized while planning:
✅ Complete the FAFSA — regardless of income level.
✅ Research each college's Common Data Set (Section H-2) for merit aid data.
✅ Compare net price vs. sticker price across schools.
✅ Ask schools about renewability of merit awards (GPA requirements, limits).
✅ Factor in hidden costs (travel, housing, fees, books).
✅ Visit campuses to assess fit, support systems, and culture.
✅ Align education costs with your long-term wealth strategy before committing.
Key Takeaway
College is one of the largest investments a family makes. By:
• Researching merit aid opportunities
• Completing the FAFSA strategically
• Visiting campuses with a focus on fit and value
Families can make decisions that protect multigenerational wealth while expanding opportunity for the next generation.
Next Step: At HT Partners LLC, we help families align education funding with broader financial goals. Schedule a consultation to ensure paying for college supports rather than disrupts your long-term wealth strategy.