What to Do Before Your Kid Leaves for College

We haven’t been through the college send-off yet, but we’re starting to think about the search with Ben, who’s 15. Finn is 11. So this is on my mind — not as something we’ve completed, but as something we’re actively preparing for.

Sending a kid to college is emotional. It’s also logistically complex. There’s a lot of financial stuff that needs to happen in the next 6-8 weeks, and most parents are figuring it out as they go.

This isn’t hard. It just needs to happen on time.

Most parents fall into what I call the College Timeline Trap — they don’t realize that timing matters more than difficulty. The tasks themselves are straightforward. Missing the deadlines is what costs you.

1. FAFSA for Next Year — File Early

You just finished the FAFSA nightmare for this year. But if your kid is going to need financial aid next year — and the year after, and the year after that — you need to file again. And the timeline is earlier than you might think.

The 2026-2027 FAFSA opened in late September 2025, ahead of the typical October 1 launch. Going forward, expect FAFSA to open around October 1 each year.

The federal deadline is technically June 30, 2027, but that’s misleading. Many states and colleges have priority deadlines in November, December, or early spring. If you wait until spring, you may miss out on aid that’s already been allocated. State and federal financial aid is often distributed on a first-come, first-served basis.

Put “File FAFSA” on your October calendar. Have your prior-year tax return ready. Don’t wait.

2. 529 Withdrawals — How to Actually Get the Money Out

You’ve been saving in a 529. Now you need to use it. This is where people make expensive mistakes.

What counts as a qualified expense: tuition and fees, books and supplies required for enrollment, room and board if enrolled at least half-time (up to the school’s published cost of attendance), computers and software and internet access if used primarily for school, and equipment required for coursework.

What does not count: transportation and travel costs, health insurance in most cases, college application or testing fees, extracurricular activity fees, and room and board if enrolled less than half-time.

The timing matters. Withdrawals need to happen in the same calendar year as the expense. You can either pay the school directly from the 529, or reimburse yourself after paying. If you reimburse yourself, keep documentation that the expense was qualified.

The penalty for mistakes: if you withdraw for non-qualified expenses, you pay income tax plus a 10% penalty on the earnings portion. That’s why keeping receipts matters.

A note on ownership, because this trips people up. Parent-owned 529s reduce aid eligibility by a maximum of 5.64% of the asset value. Student-owned 529s are assessed at a higher 20% rate. Grandparent-owned 529s are not reported on the FAFSA, and distributions from grandparent-owned 529s no longer count as student income under current rules.

If a grandparent has been saving for your kid, this is good news — but make sure you understand who owns what.

3. Health Insurance — Do They Stay on Your Plan?

Under the ACA, your child can stay on your health insurance until age 26, whether or not they’re in school, whether or not they’re married, whether or not they live with you.

Roughly 59% of college students aged 18-22 are covered by a parent’s health insurance plan. Students covered under a parent’s plan consistently report better coverage quality and lower out-of-pocket costs than those on other plan types.

But there are situations where student health insurance makes sense. Your child is going to school far away and your insurance network is local. The campus health center isn’t in-network for your family plan. Your plan has high deductibles and the student plan is more comprehensive for campus-based care. Your employer charges extra for dependents and the math doesn’t work.

School plans frequently cost $700 to $1,400 per year, but they may restrict care to campus or local providers and offer limited out-of-area coverage for students who go home for summers and breaks.

The common mistake: enrolling in a school student health plan without comparing the cost and coverage against staying on a parent’s plan. Price shouldn’t be the only consideration — but neither should convenience. Look at what your child actually needs.

Check whether your insurance network covers providers near the school. Compare the cost of keeping them on your plan versus the student health insurance option.

4. Credit Cards — Should You Add Them?

Some parents add their college student as an authorized user on a credit card to help them build credit. This can work well — or it can be a disaster. It depends on the kid.

The upside: your payment history helps build their credit score. They have a card for emergencies. It can be helpful for them to build credit history early.

The downside: you’re responsible for their charges. If they overspend, you pay. If you miss a payment, their credit suffers too. And there’s no automatic monitoring of what they’re spending.

An alternative: have them get their own student credit card with a low limit, maybe $500 to $1,000. They build their own credit history and learn to manage it themselves. The downside is that student cards often have higher interest rates.

The real risk: I know someone who had their first bankruptcy right out of college because they got card after card. They couldn’t manage the credit and it snowballed.

Decide your approach and have the conversation about expectations before they leave.

5. Private Student Loans — Don’t Cosign If You Can Avoid It

Federal student loans don’t require a cosigner. They have borrower protections, income-driven repayment options, and potential forgiveness programs.

Private student loans often require a parent cosigner — and that cosigner is fully responsible if the student doesn’t pay. This can affect your credit, your debt-to-income ratio, and your ability to borrow for other things.

I’ve talked many friends out of cosigning private loans. Almost all of them who didn’t listen regretted it. I know one person who cosigned for a friend who was recently out of college. During college, that friend had not managed their money well. They got into a lot of debt, couldn’t qualify for a loan, and needed one for a car. My friend signed. And... yada yada yada. They ended up losing the friendship and co-owning the debt when the friend stopped paying.

If your student has maxed out federal loans and still needs more, consider whether the school is affordable before you cosign private debt.

If private loans are on the table, understand exactly what you’re signing up for. Consider whether a different school or different plan might make more sense.

6. The Money Conversation

Before your kid leaves, have an explicit conversation about money.

How much are you providing? Monthly? Per semester? For what? What are they responsible for — books, food, fun? What’s the plan if they run out of money? Are they expected to work during school?

A conversation about money is critical. I think it starts before college — about debt, about savings, about making tradeoffs.

Ambiguity leads to conflict. Clarity leads to better outcomes.

Have the conversation. Write down what you agree to. Refer back to it when questions come up.

What Most People Get Wrong

The first mistake is waiting too long on FAFSA. The early deadlines matter for aid allocation. First-come, first-served is real.

The second mistake is withdrawing 529 money incorrectly. Taking money for non-qualified expenses triggers penalties you didn’t need to pay. Not understanding who owns the 529 can affect financial aid.

The third mistake is assuming their insurance “just works” at school. Network coverage matters, especially if the school is in a different state.

The fourth mistake is cosigning private loans without understanding the risk. You’re on the hook until it’s paid off — and refinancing to remove a cosigner is hard.

The fifth mistake is avoiding the money conversation. Kids who don’t know the budget can’t manage to it.

The Bottom Line

Sending a kid to college is a big transition — for them and for you. The financial logistics can feel overwhelming, but they’re manageable if you break them into pieces.

This week, log into your 529 and make sure you know how to withdraw the money. By August, you’ll have the financial side handled and can focus on the emotional part: watching your kid start a new chapter.