Pay For College

You’ve probably heard or read a story in the news lately about how expensive college has become – and as a parent, if it’s been a long time since you had to pay a tuition bill, you might be in for some sticker shock. A lot of attention gets paid to the most expensive schools – which are not always where most college-bound students head.

That being said, you also have to consider the benefits of higher education – both financial and otherwise. The College Board reports that typical college graduates earn up to 60% more over their lives compared to high school graduates. There are more than financial benefits, too – individuals with college educations are healthier, exercise more and smoke less. In addition, the study found that society benefits more from a population with a postsecondary education, with higher voter turnouts, lower unemployment rates, and even a lift in wages of workers with lower education levels in metropolitan areas with higher overall education levels.

A few facts to consider:

• The average tuition for a four-year private school in 2006-07 was $22,218 and a four-year public school was $5,836.*
• The average surcharge for an on-campus room and meal plan at a four-year school in 2006-07 ranged from $6,960 to $8,149.*
• The average amount spent on books and other supplies in 2006-07 was over $900.*
• The average transportation cost for students in 2006-07 ranged from $722 to $1,224. Expenses could include public transportation, gas, car insurance, maintenance, parking fees, and travel home for breaks and holidays.*
• The average amount spent on personal expenses in 2006-07 ranged from $1,277 to $2,048. These could include lab fees, athletic fees and equipment, club, sorority or fraternity dues, study abroad expenses, medical expenses, and emergencies.*

These ranges are helpful, but it can be hard to use them to determine what college is really going to cost for you or your son or daughter. It is often hard to get a sense for the total cost because there are so many items that add up to the complete sticker price, and then there are a number of other factors (scholarships, discounts, a part-time or work-study job) that – thankfully – lower that number to the real price paid by a family.

Start your math by finding each of your prospective school’s published expenses for Tuition & Fees and Room & Board. Search on the school’s website or look around the Financial Aid Office’s website. Look for an itemization of the incidental costs (and apply your own judgment to the school’s estimates).

Some things to consider when you break down those incidental expenses:

• Some schools list average costs for travel that might not consider how far you really have to go, or how often you will go home. A student who can bum a ride with a friend and chip in $50 for gas certainly will pay less for one trip than the one from Hawaii who goes to school on the mainland. Going home more often is obviously more expensive, no matter how you get there.

• Speaking of driving, having a car on campus is very expensive. Gas, maintenance, and insurance are just some of the additional costs. Many schools with parking restrictions don’t allow first-year students to have a car at all. If you go to school in a place with a premium on parking, you might also have to pay for a permit or garage fees – or parking tickets. Look into public transportation and shuttle buses for when walking isn’t feasible. Riding a bike to and around campus is a great way to save money and stay in shape (just make sure you have a helmet and a light)!

• Consider your meal plan options. Some plans force you to use the balance before the end of each year or semester while others are more flexible. It’s hard to know how often you’ll hit the campus cafeteria before you get there, but know that even if you live in a dorm, you will likely have access to a kitchen where you could prepare your own, inexpensive meals.

• Personal expenses can also add up. Keep room in your budget for things like medication, laundry, haircuts, clothing, and phone bills.

• Don’t forget to include some extra funds for having fun. Extra-curricular activities and sports aren’t always free – consider the cost of fees or dues, athletic equipment, uniforms, travel, or tickets for performances.

Most college guidebooks include Tuition & Fees and Room & Board; some will add it all up. Try to find the itemized accounting, and add up the numbers yourself. That total is as close to a reasonable expectation of the entire cost of college as you can get. Check what academic year for which the data is provided – if it is the current year’s cost, add 5% as a reasonable expectation of next year’s cost. If you’re really ambitious, go ahead and run a four year calculation, increasing the cost by 5% or so each year.

* Source: The College Board Trends in College Pricing, 2006.