First at 4 Forum Interview with Dr. Shaan Patel

Why Families Must Rethink College Funding in 2025—and How to Get Ahead
By Dr. Shaan Patel, CEO & Founder of Prep Expert

If you’ve been paying attention to the news lately, you know one thing is clear: federal education funding can change overnight.

Recently, we’ve seen a rapid shift—federal grant and loan programs that millions of students rely on faced a sudden pause, sparking real fear across the country. And while funding was restored quickly, it exposed an uncomfortable truth: students and families are over-reliant on federal aid.

As the founder of Prep Expert and someone who’s worked with over 100,000 families to win scholarships and college admission, I want to share why now is the time to diversify your college funding strategy—and how to stay resilient no matter what happens in Washington.

What Just Happened?

In short: a temporary funding disruption hit federal student aid programs. While full closure didn’t occur, it showed how vulnerable families are when they depend solely on FAFSA-based aid.

This came on the heels of President Trump’s executive order to begin dismantling the Department of Education—a move that could shift how federal loans and grants are managed permanently.

The message is loud and clear: families need a Plan B.

Why You Shouldn’t Rely on Federal Aid Alone

Today, federal student aid funds over $112 billion annually, helping more than 10 million students afford college. But that funding comes with major risks:

• Political Instability: Executive orders and congressional battles can disrupt aid flow with little warning.
• Processing Delays: Even minor administrative changes can cause months of delays in financial aid delivery.
• Shrinking Budgets: Rising national debt and shifting priorities could lead to cuts in Pell Grants, work-study funding, and subsidized loans.

Depending 100% on one funding source leaves students exposed when the unexpected happens.

Smarter Strategies for Paying for College

So what’s the alternative? Diversification. Just like a smart investor spreads out their assets, smart families need to build multiple streams of financial support for college.

Here’s how:

1. Private Scholarships

Every year, billions of dollars in private scholarships are available from companies, foundations, nonprofits, and local organizations.

You don’t need to be a valedictorian or star athlete to win them. Scholarships exist for:

• Community service
• First-generation college students
• Specific career interests like STEM, business, or education
• Unique talents, hobbies, or personal backgrounds

Start early. I recommend setting a goal: apply to at least 20–30 scholarships before senior year ends.

2. State-Based Grants

Most states offer need-based or merit-based grants separate from federal aid. Programs like Cal Grants or TEXAS Grants can cover thousands in tuition costs.

The catch? Many have early deadlines and different applications from FAFSA. Families should research state-specific programs through their local education agency.

3. 529 College Savings Plans

A 529 plan is a tax-advantaged investment account designed to pay for education. If you have younger children—or even if your student is just a few years away from college—it’s worth considering.

In some cases, states offer tax deductions or matching contributions for residents who open 529 accounts.

4. Institutional Aid

Many colleges, especially private ones, offer generous internal scholarships based on:

• Academic performance
• Leadership
• Artistic or athletic talent
• Community involvement

And don’t be afraid to appeal your financial aid offer. Schools will sometimes increase awards if they know you’ve received a better package elsewhere.

5. Work-Study and Part-Time Work

Federal work-study is helpful—but if that’s at risk, students can seek on-campus jobs, internships, or remote work opportunities to help offset costs.

Beyond income, these experiences build valuable skills for future employment.

How to Stay Informed and Proactive

Given the shifting landscape, it’s critical that families stay informed and plan ahead.

Here’s a checklist:

• Monitor policy updates: Stay alert about FAFSA, federal student aid, and Department of Education changes.
• Start early: Begin financial aid planning no later than sophomore or junior year of high school.
• Document everything: Keep copies of submitted FAFSA forms, aid awards, scholarship applications, and important emails.
• Consult professionals: Financial aid counselors, admissions consultants, and test prep specialists (like my team at Prep Expert) can help create customized plans.

Students who apply early, stay organized, and leverage multiple funding sources graduate with less debt and more freedom.

Why College Is Still Worth It—If You’re Strategic

Amid rising costs and policy uncertainty, some families wonder if college is even worth the risk anymore.

Here’s my take:

A college degree is still one of the strongest investments you can make.

• College graduates earn significantly more over their lifetime compared to high school graduates.
• Unemployment rates are consistently lower for college grads than for non-grads—even during economic downturns.

But in 2025 and beyond, the students who will win are the ones who plan smarter, apply wider, and prep earlier.

Final Thoughts

The recent grant and loan scare wasn’t just a glitch—it was a wake-up call. Families can’t afford to put their entire future in the hands of federal funding anymore.

If you want to secure your student’s path to college—and minimize the financial stress that comes with it—you need to start diversifying your funding strategy today.

At Prep Expert, we’ve helped families win over $100 million in scholarships and financial aid. With the right test prep, strategic applications, and a proactive plan, you can turn uncertainty into opportunity.

Because higher education is still one of the best ways to change your life. But the way we pay for it? That’s what needs to change now.

—

Dr. Shaan Patel is a Shark Tank winner, bestselling author, and founder of Prep Expert, a nationally recognized education company that helps students raise their SAT/ACT scores, earn college admission, and secure scholarships for a brighter future.