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Because of the rate at which they are rising, college costs get a lot of press coverage. But the rates commonly quoted as the price of a college education usually only take a look at three factors—in-state college tuition for in-state and out-of-state students, and tuition rates for private colleges. In reality, there are many other factors that weigh heavily on the cost of college, and public and private colleges are not the only options available to students.
When calculating the cost of college, tuition will probably be one of the biggest costs, but it doesn’t have to be. The cost of books, room, and board continues to rise along with tuition rates. Much of the cost of living depends on whether the student is living in on-campus or off-campus housing. Some colleges actually require freshmen or all undergraduates to live on campus. This lowers the cost of housing, as the price includes the cost of water and other utilities. It also reduces the transportation cost that would have been incurred in commuting to campus.
Choosing off-campus housing may be a student’s preference, but often the college does not have enough on-campus housing to meet demand. In these cases, the cost of off-campus housing may exceed the year’s tuition.
A student attending a state college can expect to pay an average tuition of around $5,000. It is the teaching of the entire school year, whether divided by three quarters, two semesters, or some other arrangement. The average full cost of a state school, which includes books and basic living expenses, is $11,000 per year. This can be mitigated somewhat by living in a dorm with roommates, and greatly enhanced by living off campus and commuting to school.
Highly sought-after private colleges are increasing tuition at rapid rates—even faster than state schools. A student today can expect to pay around $20,000 for annual tuition to a private college. This rises to $27,500 a year with books, room, and board included. The average cost of a private college education is over $100,000. This represents the average for private schools, although there are schools that charge much less and much more. For example, Harvard currently only charges $30,000 per year in tuition fees. Some small, specialized colleges without an Ivy League reputation charge no more than $8,000 to $10,000 a year for tuition.
Other costs that are rarely included in the cost equation are health insurance costs. A college student attending school full-time may be eligible for a student health insurance plan, if one is available at the student’s school. This is a fixed monthly expense which can increase annually. Another option is to add a parent or guardian of the student to the plan. It is legal till the student reaches the age of 23 years. At that age the student must purchase their own health plan as an adult.
finding other solutions
During the past 49 years, the rate of increase in tuition rates has exceeded the general inflation rate for 43 of those years. The rapid growth has made the cost more than many families can afford. But, there are many alternative solutions for students to reduce the cost of college.
One way to graduate very cheaply is to go to a junior college instead of a four-year school. Junior colleges cost about $2,000 in tuition per year. Their programs only last two years, so the cost of an entire associate degree will be less than one year of state college. Some students choose to attend a junior college for the first year or two before transferring to a more expensive four-year college. This lowers the rate during the time the student spends in junior college, and allows the student to take core curricular classes at a cheaper rate and then transfer those credits.
There is also a growing number of colleges that offer online courses or complete online degrees. These are sometimes offered in lieu of regular classes, and are charged at the same credit hour rate as classes taught in the classroom. But, some colleges are making their online courses less expensive in order to cut their own costs for classroom space and resources the college would otherwise provide, such as computer access. Online classes also reduce transportation costs for students who would otherwise travel to campus for classes.
gap filling
Financial aid is now the norm in both public and private schools. Most private schools have a high percentage of students who are receiving some form of student aid. It may be awarded by the school, funded by the school’s endowment or by tuition paid by other students. It may also come from private grants or fellowships, and/or government-sponsored Pell grants. In the 2002–03 year, approximately $105 billion was poured into the nation’s colleges by various financial aid sources.
Students must also borrow money to meet their tuition and living costs. Getting student aid isn’t always a grant or scholarship. During the 2003–04 year, more than 65 percent of college students took out some type of loan to finance their education. The average student graduating that year paid off $17,000 in debt. To receive a student loan, the student is considered dependent on a parent’s or guardian’s income until he or she reaches the age of 24. Financial aid rules apply even if a student is funding tuition without parental assistance. If parents’ income is within the limits set by their loan applications, which depend on income, assets and debt, the student is eligible for loans as well as Pell grants. Using federal student loans in conjunction with grants and scholarships has gone a long way to bridge the gap between the amount many families pay and the actual cost of college.
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