Podcast Summary:

Podcast: College Bound Mentor
Episode: Applying to College without Going Broke with Jeff Levy
Date: September 25, 2025
Host(s): Lisa Bleich, Abby Power, Stefanie Forman
Guest: Jeff Levy, Independent Educational Consultant and Financial Aid Expert

Episode Overview

In this insightful episode, the College Bound Mentor team welcomes back financial aid expert Jeff Levy. Together, they explore the latest updates in college financial aid—discussing FAFSA and CSS Profile changes, common misconceptions, strategies for maximizing aid, and practical tips for families hoping to afford college without going broke. The hosts and Jeff provide actionable advice on everything from saving strategies to understanding merit vs. need-based aid, and debunk pervasive myths about college costs and scholarships.

Key Discussion Points & Insights

1. Updates & Basics on Financial Aid Forms

• FAFSA vs. CSS Profile

  • The FAFSA (Free Application for Federal Student Aid) is required by all colleges for financial aid; the CSS Profile is required by ~170 (mostly private, selective) schools, and is more invasive.
  • "It's not really up to the family which forms to complete… it's really about which forms the colleges they're applying to require." (Jeff, 02:27)

• Who Fills Out What and When

  • FAFSA opens October 1st each year; deadlines may be as early as November 1st for early applications (03:47).
  • FAFSA now requires the student to start the application (FSA ID needed for the student), but parents provide key financial information.
  • Changes for separated/divorced parents: Now, FAFSA only considers the parent who provides more financial support, not the custodial parent. CSS Profile collects info from all parents and stepparents, making it more stringent (05:00).

• Notable Difference

  • FAFSA does not consider home equity; CSS Profile often does (exceptions: Harvard, Princeton).

2. Demystifying Aid Generosity and Awards

• Endowments ≠ Aid Generosity

  • Searching based on college endowment sizes is not useful (07:58).
  • "There are colleges all over the place in terms of their financial aid generosity… this is the challenge that faces families: How do we find the set of schools that are going to be most generous for us?" (Jeff, 07:58)

• Understanding Jeff's Financial Aid Charts

  • Levy and his partner created comprehensive charts covering over 480 institutions to help families sort schools by need-based aid generosity and merit aid.
  • Not only the average merit award but also the percentage of undergraduates receiving merit aid are crucial for families to examine (09:06).
  • "Duke has an average merit aid award of like $60,000 per year. But you know, 10 undergraduates get it." (Jeff, 10:56)

3. Common Misunderstandings & Setting Expectations

• Full Rides and Ivy League Myths

  • Misconceptions abound: Very few students get true “full rides” (usually athletic or rare merit scholarships).
  • The Ivy League and other top schools are generous with need-based aid, but do not offer merit aid (20:45).
  • "It cost me less to send [my daughters] to a very expensive Ivy League college than…it would have cost me to send them to an in-state University of California institution." (Jeff, 21:06)

• Net Price Calculators

  • Families should run net price calculators early and at multiple colleges to get an honest sense of expected costs (15:16).
  • Save results pages in case you need them for future appeals.

• How Financial Aid Calculations Work

  • Formulas assess ability to pay from income (current earnings), savings (past earnings), and loans (future earnings) (17:49).
  • Credit card debt is not considered (19:14).

4. Saving for College: Myths & Practical Advice

• Save, Don't Worry About "Penalties"
  • The idea that saving hurts financial aid eligibility is a myth.
  • Parent assets are assessed at ~5%; student assets (like UGMAs, trusts in the student's name) are assessed at 25% (Jeff, 27:50).
  • "The best single thing you can do as a parent to prepare…is to save." (Jeff, 24:39)
• 529 Plans vs. Trusts
  • 529 college savings plans are treated as parent assets if the parent is the owner/custodian, even if the student is the beneficiary.
  • Avoid trusts or UGMAs in the student's name for financial aid maximization (28:04).

5. Maximizing Merit Aid

• Using Data to Find the Best Schools

  • Use aid charts to identify schools with generous merit awards and a good fit (30:55).
  • High-merit-aid schools are often not the most selective/top 50 schools.
  • Merit aid serves as enrollment management: it is often strategically awarded based on the institution’s needs (e.g., specialities, geographic diversity) (33:00).
  • Full-pay families are often targeted for merit aid—they help subsidize need-based awards for others (34:22).

• Merit Aid: Unpredictability and Institutional Goals

  • Need-based aid is formulaic; merit aid is much less predictable (30:55).
  • Sometimes merit offers increase in April as colleges try to “close” admitted students (41:44).

• Applying Early Decision vs. Early Action

  • Early Decision reduces leverage for merit aid negotiation (as the student is committed if accepted).
  • Early Action (non-binding) may yield more merit aid offers, as colleges compete for the student during “yield protection” (41:44).

6. Trends: Public vs. Private Schools & State Policies

• Growing Interest in Public Universities
  • Increase in applications due to lower sticker prices and perceived value (especially in CA, NJ, Midwest) (44:40).
  • Out-of-state publics rarely offer substantial aid; exceptions include UVA, UNC, Oregon (46:24).
  • Residency policies (e.g., Western Undergraduate Exchange) may offer pathways to in-state tuition for out-of-state students after enrolling (48:04).

Notable Quotes/Segments on Trends:

• "We are ripe… to be plucked by institutions who through merit aid can make their college almost as inexpensive as an in-state University of California campus." (Jeff, 32:36)
• "The amount of financial aid given is going to tick down. The percentage of full pay families will tick up." (Jeff, 36:20)

7. Advanced: Enrollment Management & Data Analytics

• How Colleges Use Data for Aid Offers
  • Data models predict which students will enroll; this affects how much merit or other aid the college may offer to maximize “yield” (39:36).
  • "We want to position our applicants to look good in front of those algorithms." (Jeff, 39:36)
• Families need to understand that offers (or lack thereof) can reflect institutional analytics, not student worthiness.

8. Myth-Busting & Final Truths

• FAFSA Is Often Not Required for Merit Aid!
  • Contrary to widespread belief, almost no colleges require the FAFSA be submitted solely to be considered for merit aid—only Virginia Tech and Fordham (and Fordham only for disbursement, not award) were confirmed (49:46).
  • "If you erect barriers to get it, the family won't do it…it’s kind of counterintuitive." (Jeff, 51:44)

Notable Quotes & Moments

• "The best single thing you can do as a parent to prepare for this high cost of college is to save."
  — Jeff Levy (00:01, reiterated at 24:39)

• "Do not make your decisions based on the sticker price. It really has to be made on the projected net price, the price you're going to pay after grants and scholarships."
  — Jeff Levy (22:36)

• "When you say someone got a full ride, that's usually a very big merit scholarship or a big athletic scholarship. They're very rare... What’s not rare is that at the wealthiest schools… they are incredibly generous with need-based aid."
  — Jeff Levy (19:49)

• "There are colleges all over the place in terms of their financial aid generosity… So this is the challenge that faces families: How do we find the set of schools that are going to be most generous for us?"
  — Jeff Levy (07:58)

• "The net price calculator… If you run five or six or seven of these… you will begin to see: Are we a family that's expected to pay $25,000 or $125,000 a year toward our child's college education?"
  — Jeff Levy (15:16)

Timestamps for Important Segments

• 00:01 — Jeff’s opening advice: Save for college!
• 02:27 — FAFSA vs CSS Profile basics and changes for this year
• 05:00 — How FAFSA now handles divorced/separated parents
• 07:12 — Home equity differences between FAFSA/CSS
• 09:06 — Introduction to Jeff’s financial aid data charts
• 15:16 — Using net price calculators to gauge eligibility
• 17:49 — How the financial aid formula considers income, savings, debt
• 19:49 — Debunking “full ride to Harvard” and related myths
• 24:39 — Discussing the myths and benefits of saving for college
• 27:50 — How assets in the student’s vs parent’s name are assessed
• 30:55 — Tips for maximizing merit aid, especially for higher-income families
• 36:20 — How budget cuts and decreased international enrollment may impact future aid
• 39:36 — Data-driven enrollment management and its role in aid offers
• 41:44 — Why applying Early Decision could yield less merit aid
• 44:40 — Trend: Rising interest in public universities; caveats for out-of-state applicants
• 49:46 — Myth-busting: FAFSA not required for merit aid at most schools

Final Takeaways

• Start early. Use net price calculators and fully research colleges' financial practices.
• Don’t get caught up in rumors or Ivy League myths. Recognize the rarity of “full rides” and where merit vs. need aid is available.
• Understand and use data. Use resources like Jeff Levy’s aid charts to target schools suited to your family’s unique financial situation and student’s profile.
• Save for college! Parental savings are helpful, not harmful, in aid calculations.
• Be strategic about applications. The timing and type of application (ED vs EA) can affect aid offers, especially merit aid.
• Public schools may look affordable, but check details for out-of-state and aid policies.
• Don’t assume FAFSA is needed for merit aid—do your homework on individual college requirements.

Resources

• Jeff Levy’s financial aid charts (available via College Bound Mentor's website)
• Official site for FAFSA, CSS Profile
• Net price calculators on each college’s website