What to Budget and How to Plan
The cost of college can seem overwhelming, but understanding where your money goes can help you make informed decisions. According to the College Board, the average cost of attending college in the 2017-2018 academic year was $25,290 for in-state public colleges and $50,900 for private colleges.
Wondering what contributes to these costs? Let’s break it down into five main categories and explore ways to manage your college budget effectively.
1. Tuition and Fees
Tuition and fees typically make up the largest portion of the college budget.
- Tuition covers the cost of classes.
- Fees include expenses like sports passes, technology access, orientation, and more.
The combined total can vary depending on credit hours, academic programs, and whether the student is in-state or out-of-state. Here’s a breakdown of average costs:
- In-state public colleges: $9,970
- Out-of-state public universities: $25,620
- Private colleges: $34,740
These costs may not be itemized on financial aid award letters, so it’s important to reach out to the admissions office for a detailed estimate. If your student plans to join a fraternity or sorority, don’t forget to include dues, room and board, and related expenses in your calculations.
2. Books and Supplies
Books and supplies are another significant expense. On average, students spend around $1,300 per year on textbooks and course materials. Here are some tips to save:
- Buy used books: Check online retailers and marketplaces.
- Recycle supplies: Use backpacks, calculators, and other items from high school.
- Invest in essentials: A laptop or printer may be necessary, but opt for budget-friendly models unless a specific program (like graphic design) requires specialized equipment.
3. Room and Board
Room and board costs vary less than you might think:
- Public colleges: $10,800 per year
- Private colleges: $12,210 per year
Dorm options and meal plans come with varying price points. Alternatively, living off-campus might save money but requires budgeting for rent, utilities, and groceries. Don’t overlook the cost of furnishing a dorm room—coordinate with roommates to avoid duplicate purchases and save on essentials like bedding and small appliances.
4. Transportation
Whether commuting to campus or traveling home for the holidays, transportation costs add up. Students should budget for:
- Car payments, insurance, gas, and maintenance
- Parking passes, which may vary based on campus accessibility
- Flights or train tickets for long-distance travel
Consider how frequently your student will need their car. Walking or biking a little further can save money on premium parking spaces.
5. Personal Expenses
Personal expenses can cost hundreds each semester and often go overlooked in the budgeting process. These include:
- Laundry, toiletries, and cell phone bills
- Dining out, entertainment, and new clothes
- Emergency costs, like unexpected medical bills or car repairs
We recommend setting aside an emergency fund of at least $1,000 to cover surprises.
Don’t Let the Sticker Price Discourage You
With over 5,000 colleges in the U.S., there’s a wide range of pricing options. Shop around for schools that fit your budget, and consider starting at a community college to save on tuition. Most students qualify for federal financial aid, which includes grants, work-study opportunities, and loans like the Perkins Loan and Direct Subsidized Loan.
Additionally, prioritize applying for scholarships—they can make a huge difference in reducing costs.
First United Bank & Trust Can Help You Close the Gap
Even with careful planning, college costs can exceed what federal aid covers. That’s where we come in. An iHelp Student Loan can bridge the gap, offering flexible repayment options like interest-only or graduated repayment plans. Plus, no payments are required while your student is enrolled at least part-time. Visit our website to learn more and apply today. Let’s make college more accessible for your family.