Tuition is Only a Fraction of the Cost of Out of State Colleges

Many students end up at out of state colleges. Maybe it was a certain major, the sports team, scholarships or family history that attracted you. The reason doesn’t really matter. What matters is that you are hundreds or even thousands of miles from home and you have to pay for everything now. No more living at home, eating home cooked meals. It’s the doom and the cafeteria now. Even with this meager lifestyle, you’re going to be paying anywhere from $28k to $68k per year (1).

You’re not just paying for room and board, you also paying for various other living expenses, not to mention your actual tuition along with books and fees. There are a long list of expenses that come with being at an out of state college. You should be very familiar with your tuition, so let’s look at two other big items: housing and “hidden” expenses.

Housing

Depending in your school, you may or may not have a few different housing options. Some colleges require you to live in the dorms for at least the first year. If your school has that rule, then you’re stuck; however, if you do have the option to live off campus, look at other housing scenarios to see if you can save some cash.

Dorms are typically a good deal. They aren’t exactly luxury living, but they do have everything you need to live and they’re conveniently located close to your classes. The downside is that they’re not exactly private. You’re sharing a room with one other person and a bathroom with several people.

If you aren’t required to live on campus, an apartment is tempting. Even with a roommate, you get far more privacy than in a dorm room. Plus, it’s cooler to live in an apartment. Before you make the plunge, check the costs. Even with a roommate or two, it’s probably more expensive to live off campus. A couple hundred dollars a month quickly adds up over time.

Hidden Expenses

There’s more to the cost of college than tuition and housing. There is a long list of “hidden” expenses including books, lab fees, parking, dues, and more. This doesn’t even include general living expenses beyond basic room and board.

Expect to spend $1,000 – $1,500 per year on books and media, up to $250 per year on parking, $1,000 or more per year if you’re involved in social clubs, plus who knows how much for general spending money. (2)

Paying For It All

One of the best ways is through scholarship money. That may be why you ended up at an out of state school to begin with. Even if you aren’t on scholarship, look into what may be available at your school. Talk to the faculty on campus. They may know of scholarship opportunities that aren’t widely publicized. In nothing else, they can give you advice on how to stand out during the application process.

It may be some work to apply for the scholarships, but its completely worth it if you can win just one. Scholarships are free money. For every dollar you receive from a scholarship, that’s one less dollar out of your pocket.

The next place to turn to is a part time job. Even delivering pizzas a few nights a week will bring in enough to cover your basic living expenses. There are many people who are able to pay for college entirely between scholarships and a part time job.

Finally, student loans are available to cover any remaining expenses. First exhaust any federal student loans that you are eligible for. These carry a lower interest rate than a private loan. If you still need additional funds, private students loans are available. Private student loans work similarly to any other bank loan. You will need good credit to qualify or you will need a cosigner with good credit. (3)

Shop for a student loan just as you would with a mortgage or a car loan. Different lenders will have different underwriting criteria, interest rates, and repayment terms. While you can use these private loans for all of your living expenses, including food, gas, rent and more, use them as sparingly as possible. Do you really want to be paying for that pizza 10 years from now?

Plan well, including these items that aren’t typically included in the cost of college and you may be surprised at how little you actually need to borrow to pay for college.

Resources:

1. College Costs Could Total As Much As $334,000 In Four Years, Forbes http://www.forbes.com/sites/troyonink/2015/01/31/college-could-cost-as-much-as-334000-total-in-four-years/

2. What’s the Price Tag for a College Education?, College Data http://www.collegedata.com/cs/content/content_payarticle_tmpl.jhtml?articleId=10064

3. Private Student Loans, SimpleTuition https://www.simpletuition.com/student-loans/private/