College is an exercise in self discovery that challenges students to ask themselves some important questions: What am I passionate about? How can I leave a positive impact on the world? Searching for the answers inside and outside the classroom is hard enough without also worrying over college costs. Unfortunately, anxiety over the latter is all too common – a College Ave Student Loans survey of undergraduate respondents, conducted by Barnes & Noble College InsightsTM, reports the top two words that came to students’ minds when thinking about their current financial situation were “broke” and “stressful.”
To help alleviate this stress, here are some of the costs of college, both obvious and unexpected, with expert opinions on whether students should spend or save on them.
To help alleviate this stress, here are some of the costs of college, both obvious and unexpected, with expert opinions on whether students should spend or save on them.
Should you spend or save money on ...
Tuition and fees?
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Spend
Perhaps the most obvious cost, tuition and fees is a “fixed expense that has to be paid and is non-negotiable,” according to Daad Adel Rizk, former director of Pennsylvania State University’s Sokolov-Miller Family Financial & Life Skills Center. On average, out-of-state students attending public four-year universities in 2022-23 paid $28,240 in tuition and fees – more than 60% of the budget College Board reports for out-of-state students at public universities. But this expense can be considered as an investment in the professors, courses and overall academics at a university. And according to the experts, the ultimate return on this investment – a college degree – is valuable and merits a rating of spend.
That doesn’t mean spend recklessly, however. “Students need to find a balance between attending a good university that provides a rigorous curriculum in their field of study and financing it with the least amount of student debt,” Rizk says. College students and their families should research scholarships and grants first, then fill out the Free Application for Federal Student Aid (FAFSA) to find out how much financial aid they qualify for, including federal student loans. They then should also consider private student loans to close the gap. They should also make sure to be thorough and take advantage of every cost-saving opportunity available. “As a rule of thumb, I suggest students apply for the most specialized scholarships they qualify for first,” Ben Raines, manager of Ohio State University’s peer financial advising program, says. “Large national scholarships get thousands of applicants annually but there might be some scholarships only open to students from a niche major.” Private lenders also offer scholarship options, like College Ave Student Loans’ $1,000 scholarship sweepstakes, awarded to a different student each month.
That doesn’t mean spend recklessly, however. “Students need to find a balance between attending a good university that provides a rigorous curriculum in their field of study and financing it with the least amount of student debt,” Rizk says. College students and their families should research scholarships and grants first, then fill out the Free Application for Federal Student Aid (FAFSA) to find out how much financial aid they qualify for, including federal student loans. They then should also consider private student loans to close the gap. They should also make sure to be thorough and take advantage of every cost-saving opportunity available. “As a rule of thumb, I suggest students apply for the most specialized scholarships they qualify for first,” Ben Raines, manager of Ohio State University’s peer financial advising program, says. “Large national scholarships get thousands of applicants annually but there might be some scholarships only open to students from a niche major.” Private lenders also offer scholarship options, like College Ave Student Loans’ $1,000 scholarship sweepstakes, awarded to a different student each month.
Should you spend or save money on ...
Room and board?
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Spend
Along with tuition and fees, the cost of room and board tends to take up a significant percentage of college student budgets. College Board reports that for in-state students attending public four-year universities in 2022-23, the average price, $12,310, was actually higher than the average cost of tuition and fees ($10,940). If tuition and fees are the price of a student’s academic experience, then room and board can be considered an investment in community. Raines cautions against thinking about college simply “as a monetary transaction with a financial return on investment” and encourages students to consider the “substantial intangible benefits” of the college experience. “An active social life, for instance, can turn into a great professional network in a decade,” he says.
Should you spend or save money on ...
Books and materials?
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Spend
The price tag of this recurring expense tends to catch students and families off guard, but there are a handful of options to cut down the cost. “Students have to purchase books, which is considered a fixed expense, but their budget will vary if they buy new, used or rent books,” Rizk says.
“You can also save money by going to class before you actually buy the materials to figure out what you need and what you don’t,” Jean Chatzky, founder and CEO of HerMoney.com, says. “Sometimes there are items on the list that are just not necessary.” Students can also use financial aid to help pay for course materials.
“You can also save money by going to class before you actually buy the materials to figure out what you need and what you don’t,” Jean Chatzky, founder and CEO of HerMoney.com, says. “Sometimes there are items on the list that are just not necessary.” Students can also use financial aid to help pay for course materials.
Should you spend or save money on ...
Transportation?
Save
Spend
The cost of traveling between campus and home for holidays, breaks or emergencies can add up quickly and take students by surprise if they’re not careful. With foresight and organization, however, students can save on these transportation costs. “Figure out how often you’re going home and how you’re planning on getting there,” Chatzky says. “If you’re flying, buy those tickets in advance enough to get a good rate on them before prices soar because usually all the students head home at the same time.” Some airlines, like Delta Airlines and American Airlines, offer student discounts; Amtrak also offers discounts for students traveling to certain parts of the country.
To account for the cost of trips that aren’t planned far in advance, Rizk recommends creating an “emergency fund to catch all unexpected miscellaneous expenses.” Another way to save is to simply opt out of traveling for every break.
To account for the cost of trips that aren’t planned far in advance, Rizk recommends creating an “emergency fund to catch all unexpected miscellaneous expenses.” Another way to save is to simply opt out of traveling for every break.
Should you spend or save money on ...
Entertainment and miscellaneous personal spending?
Save
Finding balance between work and play is important, but entertainment expenses can catch students off guard if left unchecked. According to Raines, “being intentional about their spending outside the classroom is the way students can most directly make their overall cost of college less expensive.” Students should take advantage of student activities budgets that provide programs for free or at reduced cost. “At Ohio State this could be anything from game nights in the residence halls to free tickets to an NHL game,” Raines says. Students may also be able to use student discounts to enjoy streaming platforms like Hulu, Max and Spotify.
Navigating the finances of college is no easy task. However, itemizing the expenses and discerning where you can spend or economize helps. College Ave Student Loans has a variety of resources and calculators to assist students in making smart financial decisions in preparation for college and throughout their collegiate journey.
