Understanding College Costs
College costs can be a bit confusing; this section clears up what these costs are and what the average is today.
Tuition and Fees
This covers the salaries of professors, maintenance of buildings, use of school medical clinic, and so on. Basically, it's the cost of being a student (whether a commuter or resident) on a campus.
At public colleges, this number is currently averaging just under $6,000 for in-state residents; it is over $22,000 for private schools, and about $2,300 per year for two-year public colleges.
Room and Board
Room and board includes a place to live and food to eat. Prices for tiny dorm rooms are exorbitant — room and board tends to cost between $7,000 and $8,000 per school year. You can usually save a bundle by living off campus, particularly if you share a rental house with other students.
Sometimes, parents with a bit of extra cash will buy a house for their college kids. The kids living there split the cost of the mortgage payment, taxes, and insurance (and often pay the same price they would if renting), and the parents sell the house when the kids graduate. It's really not a bad idea.
Books
College textbooks are expensive — textbooks can cost over $100 each. The average bill for books for a school year is about $900.
Study Abroad
Many college students try to take one semester or year and study abroad. Expenses vary by the student and the location, but this cost generally includes airfare to and from the location; tuition at the foreign school; and spending money at the location. However, when attending a very expensive university (such as Harvard, MIT, Notre Dame, and so on), studying abroad may actually cost less, even factoring in the increased travel costs.
Internships
Internships are becoming more and more vital to graduating college seniors. If you're able to work in your field of interest before graduation, you'll have a much easier time finding work in your field. Many students live at home while interning during summers; those who can't live at home will need to pay for an apartment during the internship period.
Transportation
Some economists predict that college costs (tuition, fees, room, and board) will rise 6 percent per year, which means that current public-university tuition costs of, say, $6,000 per year, will rise to over $17,000 in 18 years.
Some freshman aren't allowed to have cars on campus, but if a student is to have any flexibility at all, taking a car to school — even an old clunker — is a good idea.
You will, however, have to estimate gas, maintenance, insurance, excise or personal property taxes, and license. Transportation costs vary widely based on the cost of gas, but you can estimate about $1,000 per year for on-campus students and about $1,500 for commuters.
Miscellaneous Expenses
Miscellaneous expenses range from music downloads to late-night pizzas to gas. They generally run around $1,500 per year, for a student on a budget.
