Advice sought

Paying for College
1

<p>My oldest is in 10th grade.</p>

<p>Are income has increased considerably in the last year. We expect to remain at this income level. We have no savings (small 401(k) and very small 529) and considerable debt.</p>

<p>What is the best strategy to plan for son's college?</p>

<p>My understanding is that debt is not looked at on the FAFSA or CSS.
I'd like to take the higher earnings and payoff current debt sooner. I think this would improve our credit score and put us in a better position for a home equity loan to pay for college. I know the FAFSA will look at our income and "assume" it was always in this range. The EFC calculator I ran is coming up with amounts we simply can't afford.</p>

<p>We of course will look into schools with merit, commuting options, and the "generous" FA schools who give FA up to $200K in income (I like to call these the lottery schools). What I want is simply to know if paying off current debt is the best plan with son so near college or if we should be putting the money into a savings vehicle.</p>

2

<p>If the debt is high interest debt, then certainly pay it off. If it’s very low interest, like for a car, then you might leave it alone. </p>

<p>You know your child…Will he likely have the high stats for HYPS and/or for BIG MERIT at the schools that give such? Would he be happy at his state flagship which would be much less than a private that would expect you to be full pay?</p>