Advanced Strategies To Slash The Cost Of College

Shaan Patel is here to discuss how you can slash the cost of college through some more advanced strategies. We also discuss major education changes packed into the “Big Beautiful Bill,” starting with the introduction of new Trump Accounts—a kind of IRA for minors with no deductions and withdrawal restrictions until age 18. We cover expanded uses for 529 plans, including tutoring, test prep, homeschool materials, and more. Repayment options are narrowed down to just two, and several popular income-driven plans are scrapped.

We also talk about how Pell Grants are being expanded for short-term workforce programs and the future of the Department of Education as it sees deep funding cuts—all pointing to less federal support, more private lending, and a growing need for serious college planning. 

We discuss...

• Major education reforms packed into the “Big Beautiful Bill,” starting with the new Trump Account—a savings vehicle for minors with a $5,000 annual cap, no deductions, and no early withdrawals.
• The bill expands 529 plans to cover tutoring, test prep, online learning, homeschool materials, and special education services.
• A new federal tax credit scholarship program allows individuals and corporations to donate up to $1,700 annually to scholarship organizations, with a 100% tax credit.
• There’s also $500 million in grants for “American Values” curricula promoting patriotism and national pride.
• On the college side, new federal loan caps include $100K for master’s degrees, $200K for professional degrees (like law or med school), and a $257,500 lifetime limit—while Grad PLUS loans are eliminated entirely.
• Repayment options are now limited to a standard plan or a new Repayment Assistance Plan (RAP), ending other income-based programs like SAVE and PAYE.
• Public Service Loan Forgiveness survives but faces tighter eligibility, and deferment options for hardship have been significantly cut.
• Workforce Pell Grants are expanded to include short-term training programs (8–15 weeks) for in-demand technical jobs.
• Wealthy universities face a major increase in endowment taxes—up to 8%—especially impacting Ivy League schools.
• The Department of Education will see a nearly 20% discretionary funding cut over five years, potentially affecting programs like TRIO that help low-income students access college.
• With fewer federal dollars and tighter lending, private loans may fill the gap—making proactive college and financial planning more critical than ever.
• Parents of younger students (7th–10th grade) should start planning early for the PSAT.

Today's Panelists:

• Kirk Chisholm | Innovative Wealth
• Barbara Friedberg | Barbara Friedberg Personal Finance
• Diana Perkins | Trading with Diana

 

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For more information, visit the show notes at https://moneytreepodcast.com/slash-the-cost-of-college-shaan-patel-732