MoneyWatch with Jill Schlesinger Funding Two Years of College
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Mar 28, 2026 Laura, a short-term rental operator from Austin with significant real estate holdings, calls in seeking tuition help. She discusses a $80,000 gap for two college years, 529 balances, changing income, rental cashflow, and leveraging retirement loans. Practical strategies include applying for FAFSA, documenting income changes, pausing new property buys, and preserving liquid reserves.
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Parents Achieve Debt Free College For First Child
- Laura and her husband saved aggressively so their older daughter graduated debt-free with $529s and aggressive savings.
- They used $80,000 in a 529 plus merit aid and the older daughter now lives rent-free in a family property while doing part-time work.
High Paper Assets Can Hide Aid Eligibility
- A sudden income drop changes financial aid prospects even when assets look large on paper.
- Laura's household income fell 90% to $75,000, while substantial assets are illiquid real estate and retirement balances.
Real Estate Builds Income But Reduces Liquidity
- Real estate can be a powerful long-term income plan but it ties up liquidity and may not solve near-term cash needs.
- Laura plans to grow student-housing rentals to generate passive income by age 70.