When families start planning for higher education, tuition is usually the first number they look at. And while tuition is certainly a major expense, it only tells part of the story.
The true cost of college includes a wide range of expenses that can add up quickly, so understanding the full picture is an important first step toward building a realistic budget. Here’s what to prepare for.
Tuition and Fees
Tuition is the amount a college or university charges for instruction each semester or academic year. On top of tuition, most schools also charge mandatory fees that cover things like campus technology, student activities, athletics and facility maintenance.
These fees vary widely by institution but are typically non-negotiable, meaning every enrolled student pays them regardless of whether they use the associated services.
Housing
Whether a student lives on campus in a residence hall or rents an apartment nearby, housing is one of the largest line items in any college budget.
On-campus housing costs are set by the school and often bundled into a room-and-board package, while off-campus rent will depend on the local housing market. Either way, students and families should expect to spend several thousand dollars per year on a place to live unless they plan to stay at home.
Food and Meal Plans
Eating is a daily expense that adds up over the course of a semester. Many schools offer meal plans that provide a set number of meals or amount of money per week at dining facilities, and these plans are sometimes required for students living on campus.
Students who live off campus will need to budget for groceries and dining out, which can be equally costly depending on the area.
Textbooks and Supplies
Course materials remain a significant expense for college students. Textbooks, lab supplies, software licenses and other required materials can cost over a thousand dollars per year at a four-year institution.
Buying used books, renting or using digital editions can help reduce this cost, but it’s nearly impossible to avoid entirely.
Transportation
Getting to and from campus, whether by car, bus or train, comes with its own set of expenses. Students who drive will need to account for a monthly car payment, gas, insurance, maintenance and potentially a campus parking pass.
Those who travel home during breaks or holidays should also factor in the cost of flights or long-distance car travel.
Personal and Miscellaneous Expenses
Day-to-day costs like laundry, toiletries, clothing, phone bills and entertainment may seem small individually, but they add up over the course of an academic year. Students who are living on their own for the first time may underestimate how quickly these routine expenses can eat into a budget.
Can the Cost of College Change?
It is important to understand that the cost of attending college isn’t fixed for four years. Several factors can cause expenses to rise or financial aid to shrink between freshman year and graduation, including:
- Annual tuition increases: Many schools raise their tuition rates every year. A student who enrolls at a certain rate may find that their costs have increased meaningfully by the time they reach their junior or senior year. Public universities, which rely heavily on state funding, may raise tuition in response to state budget changes, while private institutions adjust pricing based on their own financial needs and market conditions.
- Changes to federal financial aid. Changes in government policy, adjustments to Pell Grant eligibility or modifications to federal loan programs can all affect how much aid a student receives. Because the Free Application for Federal Student Aid (FAFSA) must be completed annually, a student’s aid package can look different from one academic year to the next.
- Shifting personal circumstances. A family’s financial situation can change due to job loss, income changes or other life events, which may affect eligibility for need-based aid or the ability to cover out-of-pocket costs.
Staying informed about these factors and reapplying for financial aid each year is essential for managing costs over the full course of a degree.
Planning Ahead Makes a Difference
Understanding everything that goes into the cost of college can help students and families avoid surprises and make more informed financial decisions. When federal aid, scholarships and savings aren’t enough to cover the full cost of attendance, a private student loan can help bridge the gap.
ELFI offers private student loans with flexible repayment options, competitive rates and a straightforward application process guided by a dedicated loan advisor. Check your rate today to get started!
Stay tuned for more in our first-generation college student series!
