Just want to second the suggestion to go on the music forum.
There are threads on there right now with parents writing about their search for merit scholarships, many of them in jazz/popular music/voice. Apparently some of them are successful but I think it is better to apply to schools that have better financial aid, from the start.
In our experience, top conservatories that are freestanding and don’t come close to meeting need, are often out of range for families with limited means.
Music at LAC’s and universities, including your state university, are often the best route, and you are doing that. I know many musicians who went on to top conservatories/schools of music from their state university.
You are wise to save for grad school.