Solutions To Pay For College Tuition
Are scholarships, grants, and student loans the best resources for helping students pay for college? Explore other resources that can help with tuition costs.
Author:James PierceReviewer:Alberto ThompsonNov 07, 2025503 Shares100.5K Views
If you are looking for options that can help you pay for college tuition, you'll find plenty of possibilities. Many scholarships, grants, student loans, and federal work-study programs exist to help college students pay for tuition and fees.
The problem lies in qualifying for those opportunities. As many students and parents have found after submitting a Free Application for Federal Student Aid (FAFSA) form, meeting the criteria that make you eligible for grants and scholarships can be challenging, especially for high-income families.
“There are two factors that come into play for those seeking money to pay for college: student positioning and financial positioning,” explains Lance Morgan, founder and CEO of Legetty. “The financial aid packages that are ultimately presented to students to help with tuition costs are built based on those factors. Consequently, gaining access to solutions involves understanding and addressing those two factors.”
Lance Morgan is a best-selling author, college funding specialist, and creator of the Creative College Funding System™. He created the system to give high-income families a transparent, data-driven platform that would help them use real estate tax strategies to reduce tuition costs, protect retirement savings, and build generational wealth.
“Most families are familiar with leveraging academic performance to earn merit-based scholarships, which is student positioning,” Lance says. “What they are less familiar with is positioning their finances in a way that opens the door to need-based financial aid.”
Why 529 Accounts Are Not The Way To Pay For College
More than 30 years ago, the US federal government created the 529 plan, a tax-advantaged college savings plan that encourages families to save for education expenses by allowing funds to grow and be withdrawn tax-free. Millions of families have established accounts to take advantage of 529 plans with the hopes of avoiding college loans and the costly repayment responsibilities they impose on new graduates.
But 529 plans can work against those seeking financial aid, which is free money that students never need to pay back. The plans can lock up funds that families could use for investments, worsening their financial position.
“I have always taught people not to use 529 plans for two reasons,” Lance says. “The first reason is that 529 plans actually penalize you when you apply for financial aid because they are considered an asset that improves your financial positioning. The second reason involved opportunity costs.”
Opportunity costis a term used to describe the lost opportunities that follow certain financial decisions. With 529 plans, families pay a huge opportunity cost when they begin withdrawing funds to pay for education expenses. If other funding options are pursued, families can keep the money they put into 529 plans in retirement or other savings accounts and take advantage of the benefits of long-term compounding interest.
“If you pay $100,000 for your kids to get an education with money from your 529 plan, it's not just going to cost you $100,000,” Lance explains. “It's also going to cost you what the $100,000 could have earned over the next 20 to 30 years. To avoid that cost, you borrow the money at a lower interest rate or implement strategies that put off payments on those loans.”
How To Use Real Estate Investing To Secure Financial Aid For College Costs
High-income families seeking financial aid for higher education typically find themselves denied access to federal and state aid programs because those programs are based on financial need. The programs consider income and savings — including 529 plans — as they assess need, which means they see high-income families as capable of covering the costs of attending college without receiving financial aid.
But the high costs of college can mean a family's savings are depleted by tuition responsibilities, especially if they face college expenses for a number of children. For many high-income families, sending their students to the school of their choice often means tapping into their retirement savings or limiting the growth of those savings by redirecting their regular cash flow to cover tuition expenses.
Lance recommends that high-income families avoid dipping into their retirement savings by repositioning their assets to increase financial aid eligibility. Real estate, he says, is one of the best tools for asset repositioning.
“Using real estate as part of your college funding plan provides five benefits,” Lance shares. “First, it opens the door for free money for high-income families who wouldn’t qualify for financial aid. Second, it qualifies families for what I call ‘tax scholarships’ by reducing taxes to offset the cost of college. Third, it produces cash flow to pay for college. Fourth, it creates a continued cash flow for retirement income. And finally, it can be passed on to the next generation as a financial legacy.”
Real estate investments can help to reduce the income numbers considered for financial aid awards by leveraging tax deductions. By combining certain types of real estate investments with IRS-approved tax strategies, families can reduce their "on paper" income number by $100,000 or more.
“For high-income families, the normal solutions for funding college education often aren't accessible,” Lance says. “But that doesn't mean those families need to sacrifice their retirement savings or cash flow to secure an education for their kids. With the right strategies, high-income families can reposition their finances in a way that allows them to tap into empowering college funding solutions.”
James Pierce
Author
James Pierce, a Finance and Crypto expert, brings over 15 years of experience to his writing. With a Master's degree in Finance from Harvard University, James's insightful articles and research papers have earned him recognition in the industry.
His expertise spans financial markets and digital currencies, making him a trusted source for analysis and commentary. James seamlessly integrates his passion for travel into his work, providing readers with a unique perspective on global finance and the digital economy.
Outside of writing, James enjoys photography, hiking, and exploring local cuisines during his travels.
Alberto Thompson
Reviewer
Alberto Thompson is an acclaimed journalist, sports enthusiast, and economics aficionado renowned for his expertise and trustworthiness. Holding a Bachelor's degree in Journalism and Economics from Columbia University, Alberto brings over 15 years of media experience to his work, delivering insights that are both deep and accurate.
Outside of his professional pursuits, Alberto enjoys exploring the outdoors, indulging in sports, and immersing himself in literature. His dedication to providing informed perspectives and fostering meaningful discourse underscores his passion for journalism, sports, and economics. Alberto Thompson continues to make a significant impact in these fields, leaving an indelible mark through his commitment and expertise.
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