As you begin your higher education journey, it might feel overwhelming when you start adding up all the expenses required to attend a college or university. The cost of tuition is just one cost to think about when you budget for school. All the costs that are associated with attending college can start to add up. It can be a financial burden for even the most prepared students.
Costs to Consider
When considering how much you need to budget for when looking at a college or university, tuition for four or two years is only half of the equation. Here are all the things to add into your budget when planning for your school career.
1. Tuition
In the past few years, prices of colleges have been on the rise. The average cost for the 2021-2022 school year increased by 1 percent in the last year. This is a pretty significant increase. In the past ten years, tuition prices and fees increased up to 18 percent. The average tuition for a private college is $43,775. For out-of-state students attending a public university the average cost is $28,238 and in-state residents have an average cost of $11,631. To see how the prices of tuition have changed over the years, check out.
2. Books
The cost of books is a significant cost to students each year. The average cost of books and supplies can be anywhere between $1,100 to $1,600 each year. This depends on your school, your classes, and certain majors. But it is important to budget for this cost each year.
3. Room and Board
Most colleges offer dorms and meal plans for their students. These costs need to be factored into your yearly budget. Other options are to live off campus or at home if that is an option for your experience. Either way, paying for housing and food is necessary. Most students don’t have time to work a full-time job during their schooling, so they might not have money coming in to pay for those expenses. At a four-year university the average cost for room and board ranges from $10,000 to $12,500 for on campus housing each year. If you are able to find off-campus options, those tend to range from $9,300 to $10,600 each year.
4. Additional Expenses
These expenses include transportation costs, phone bills, car payments, laundry, entertainment, etc. These expenses include anything you will spend your money on each year. Average costs range from $2,000 to $5,000 a year. The easiest way to calculate how much you might need for extra expenses is to look at your monthly spending and multiply that by the 9 months you will be in school.
For more information about the average costs for attending a four- or two-year college, check out this information. When you add up all the costs you might incur during your college years, the financial burden might feel overwhelming. There are a lot of options for getting financial support for these expenses.
Student Loans
Getting a student loan is a great way to get the financial support to pay for all the expenses that come along with being an undergraduate student. There are multiple student loan options available to apply for.
1. Federal Subsidized Loans
Depending on your financial need, a subsidized loan might be available to apply for. Subsidized loans don’t start accruing interest during the time the student is in school. They also offer fixed term rates during the length of the loan. Federal loans are great options because the interest rates are typically much lower, they don’t require credit history, and provide adequate help in making payments easily.
2. Federal Unsubsidized Loans
Unsubsidized loans don’t offer the same interest deferment; however, all federal loans have forbearance or deferment options that can pause the loan payment during times of financial distress. Most federal loans don’t require any payments during the time the student is still enrolled in school, and up to six months after graduation. When paying back federal student undergraduate loan, the amount paid is based on the income of the student after graduation. This means the borrower won’t have to pay more than they can afford. Federal student loan options are more forgiving with their terms, payments, and amounts.
3. Private Student Loans
If federal loans can’t cover the entire costs of your schooling, looking at a private lender is a good option to cover the costs. These loans typically have higher interest rates and less forgiving payment options. Some lenders may provide deferments for the interest rates while the student is enrolled, however, most do not. Finding the best lender for your needs requires comparing rates and terms of the loans. When finding a private lender, look for the best interest rates and repayment options available.
