The average cost of college has more than doubled over the last 20 years, and tuition at many 4-year private colleges is over $40,000 per year. However, it is important for families saving up for college to understand that the cost of attendance is actually much higher when you account for housing, food, books, and other fees.
Fortunately, there are options available to help fund a college education. From financial aid to scholarships to loans, there are many ways to help you and your family afford college.
Financial obligations for college students can be broken down into a few categories. While a school’s tuition makes up the bulk of the cost, there are many other fees associated with attending college.
Tuition is how you pay for your education. These costs generally go towards paying the salaries of professors and other educators, funding research projects, and providing academic and instructional support for students.
According to a report by U.S. News & World Report, the current average tuition cost for a public, in-state 4-year college is $10,662, while the average tuition cost for a private 4-year college is $42,162. However, actual tuition costs can vary widely. For example, Harvard’s tuition for the 2024-2025 school year is $56,550, while UCLA’s tuition is $15,154 for California residents and $49,354 for out-of-state students.
Unless you will be living at home while attending college, you’ll most likely need to pay housing costs. This can be a set cost charged for dorm living by a college, or it can mean rent paid to a landlord for an off-campus apartment.
While you are planning your budget, research whether each college offers — or requires, as Northwestern does — on-campus housing, or if off-campus housing is available, and compare the expected costs of either option.
Most colleges also offer a few options for meal plans for students, and some schools require freshmen to choose a meal plan. These plans can vary from a set number of meals to a cash account that is used for campus dining. Compare the cost per meal on a meal plan with the average amount you’d have to spend on an off-campus meal in the town or city where the college is located.
Most colleges charge students an assortment of additional fees, which may include registration fees, document fees, health coverage, and student life funding. These fees are usually mandatory.
Some examples of these costs:
The typical college student takes 3-5 classes per semester, and each of those classes will likely require a textbook — often more than one. Scientific textbooks can cost over $100 each, while social science books can be priced closer to $40-50. Some courses may also require you to purchase workbooks or printable materials.
In addition, you may need to pay lab fees or technology fees for courses that have a hands-on component, like biology, chemistry, engineering, or computer science.
A college’s location has a big impact on how you will be able to get around. Will you have a car and need to pay for gas, parking, and maintenance? Will you need to pay for mass transit fares to travel between campuses or from where you live to the school?
Be sure to consider the cost of travel from your home to the college you will be attending as well, including any trips you might make over the holidays.
If you’re involved in on-campus sports, clubs, or activities, there will likely be costs and fees. These can include uniform and equipment charges for sports teams, dues paid to a fraternity or sorority, or incidental expenses as part of a theater or dance performance.
College financial obligations can add up, and most families don’t cover the entire cost out of pocket. According to a 2022-2023 report compiled by Sally Mae and Ipsos, the typical American family compiles their college payments from these sources:
Scholarships are typically awarded to students by foundations, organizations, and nonprofits in recognition of success in academics or sports or for pursuing a specific area of study. Your high school may have a list of scholarships available to students, and the college you’ll be attending may also offer its own scholarships. Use MyScholly to research external scholarships you may qualify for and submit online applications.
Grants are available at the state and national level and can be applied for with your FAFSA. Grants are free federal funding that don’t need to be paid back (unless you don’t meet your obligations). One of the most well-known is the Pell Grant, but several others are also available based on your qualifications.
Loans are money that’s borrowed to pay for college. Federal loans are available, as are loans from private banks, some of which specialize in student loans. When you leave college, you must pay back the money from the loan with interest.
Be aware that large loans can accrue interest quickly and result in you owing much more than you originally borrowed. Before taking out any loans, be sure you understand the interest rates, repayment terms, and the long-term impact of borrowing.
Work-study programs enable you to work part-time to help pay for college costs. You may be awarded a work-study plan as a result of your FAFSA application, or you may be able to get hired to an on-campus job by your college directly.
With a work-study job, you’ll be paid at least the federal minimum wage per hour, and you may earn more depending on the role.
If you have a young child, it’s not too soon to begin saving for their college education! Every state offers at least one 529 college savings plan for its residents. These college savings accounts are funded by after-tax dollars and the contributions are typically tax-deductible. They tend to be simple, low risk, investment options, similar to 401(k) retirement plans that can help families save for college over time.
Finances tend to ultimately be the most important factor in deciding which college to attend, so it’s important to develop a realistic budget early in the application process.
For each college you’re considering, figure out the complete cost per semester, including tuition, room and board, estimated cost of books and supplies, transportation, and any other factors. Then, consider your funding options and work with your family to determine the realistic amount you can afford to spend.
To simplify the process, CAPS has compiled a college financial workbook. Download and print this free resource, then fill it out for each college as you research its costs. At the end, you’ll have a quick reference available to help you make that final college decision.
No matter where you are in the college admissions process, CAPS is available to help you through it. Let CAPS be your partner every step of the way — from laying out your high school curriculum to finalizing your college applications to working out your finances.
Contact CAPS today to learn more about how we can help you on your college admissions journey!