A Parent's Guide: Understanding the Costs of College
SaveUnderstanding the full cost of college involves more than just tuition; parents should account for fees, room and board, books, and personal expenses. Planning early through financial aid, savings, scholarships, and work-study options can help manage these costs. Budgeting and being aware of potential cost increases also play a critical role in preparing for college expenses.
By Kaley White
When it comes to preparing for your child's college education, one of the biggest concerns for parents is the steep sticker price. With tuition rates continuing to rise each year, it can be overwhelming to try and figure out how much it will actually cost to send your child to college. A recent Campus Esp report (2024) found that 39% of parents wished they had more information from the institution about the related costs and tuition of attending university. This article will break down the key components of college tuition and the cost of attendance so that parents can have a better understanding of what to expect when it comes to paying for their child's education.
Tuition
Tuition is defined as the cost of the courses and instructional services that your child will receive at their chosen college or university. It is very important to understand that tuition is the base cost of attending college. Tuition does not include other expenses such as room and board, textbooks, or personal and miscellaneous expenses. For Liberal Arts colleges, specifically, tuition rates will vary depending on a variety of factors — quality of instruction, the prestige, research tier, and geographic location among them.
It's important to keep in mind that tuition rates are subject to increase each year. It's essential to budget for potential tuition hikes during your child's college career. Many colleges also offer payment plans or financial aid options to help offset the cost of tuition for families who may not be able to afford the full amount upfront.
Cost of Attendance
On top of tuition expenses, families will also have to consider the cost of attendance. Cost of attendance includes other expenses that students will incur while attending college. These expenses can vary depending on the institution, location, and lifestyle choices of the student. This cost is more workable than fixed tuition prices. Families can plan more specifically and intentionally about where they might be able to reduce costs and expenses. The cost of attendance typically includes the following components:
1. Room and Board:
This includes the cost of living in a dormitory or off-campus housing and purchasing meal plans. The cost of room and board varies significantly depending on the housing options available at the college or university. Some universities have mandatory freshman housing that will require the purchase of a meal plan. Other schools will have a variety of on campus options. Keep in mind, it's unusual that schools will allow underclassmen (freshman and sophomores) to live off campus. Check your student's prospective colleges housing pages to determine what the room and board criteria are and how much to budget for those expenses.2. Books and Supplies:
Textbooks and other course materials can add up quickly. Some students will spend hundreds of thousands of dollars each semester on books alone. Many college libraries and bookstores offer used textbooks, rental options, or digital versions to help reduce costs for students. As well, many students can source their textbooks in alternative ways through apps and other programs that have textbook rentals independent from their university. Encourage your child to email their professors and ask about alternative textbook sourcing options, too.3. Transportation:
Whether your child will commute to campus or travel back home during breaks, transportation costs should be factored into the overall cost of attendance. Some students may also need a car to get to and from campus, so it's important to consider gas, parking, and other maintenance expenses. As well, some campuses do not allow on campus freshmen to have vehicles. In this case, you may also need to factor in plane or train tickets if your child plans to come home for holidays.4. Personal Expenses:
This category offers the most flexibility financially, depending on students needs. It includes expenses such as clothing, toiletries, entertainment, and any other personal items that your child may need while going about their day-to-day life. It's important to budget for these expenses to ensure that your child has everything they need to be comfortable and successful during their studies. If your child picks up an on campus job, it might be wise for them to allocate some of that income for these types of expenses, which might involve things like dinners off campus with friends, exploring a nearby city, or going to the movies.5. Miscellaneous Fees:
Colleges and universities often charge additional fees for services such as health insurance, technology fees, printing (in some cases), and other on and off campus activities. These fees can vary from institution to institution. It's important to be aware of any potential extra costs when planning for your child's college expenses. Some colleges also factor these costs into the base price of tuition. If you're not sure how your child's institution calculates these expenses, reach out to the financial aid office for more information.When calculating the total cost of attendance, be sure to factor in all of these expenses in addition to tuition. Combining the tuition and costs of attendance provides a more accurate estimate of what it will actually cost to send your child to college. Many colleges and universities provide a cost of attendance calculator on their websites. This can help families estimate the total cost of attending their institution.
Be aware: many colleges use a national database to determine their regions average cost of living. These numbers often fall well below the average cost of what it takes to afford a comfortable quality of life. It's always better to over-budget than under-budget. Be honest with yourself and your child about what will realistically be needed to complete their coursework and maintain social and personal wellness while in college.
Tuition Rewards, Financial Aid, and Scholarships
While the price tag of college is daunting, several options are available to help make higher education more affordable for families. Programs like SAGE Scholars offer Tuition Rewards for private college education to offer a guaranteed minimum discount at over 450 qualifying member private colleges and universities.
Financial aid
is another common option that many families use to help offset the cost of tuition and other expenses. This can include grants, scholarships, loans, and work-study programs that are offered by the federal government, state governments, colleges, and private organizations.Scholarships
are another popular form of financial aid helping to reduce the overall cost of college for students. Scholarships are typically awarded based on academic achievement, talent, or financial need and do not need to be repaid. There are thousands of scholarships available to students. It's important to research and apply for as many as possible to increase the chances of receiving financial assistance.In addition to financial aid and scholarships, some colleges offer merit-based aid or need-based aid to students who demonstrate academic excellence or financial need. These types of aid can help reduce the cost of attendance for families who may not qualify for other forms of financial assistance.
It's never too early to start researching financial aid options for your child's college search process. Doing so ensures that your child has enough time to apply for scholarships and complete the necessary paperwork for financial aid. The Free Application for Federal Student Aid (FAFSA) is a common form that families must complete in order to be considered for federal financial aid. Be sure to submit this form in a timely manner to maximize your chances of receiving aid. Read more about the FAFSA here:
Planning Ahead
It's important to lead college financial conversations with your child and start planning for college expenses as early as possible. Planning ahead ensures that you have enough time to save and prepare for the financial commitment. Here are some tips to help you plan ahead for your child's college education:
1. Start Saving Early:
One of the most effective ways to prepare for college costs is to start saving as soon as possible. Consider opening a college savings account, such as a 529 plan or a Coverdell Education Savings Account, to help grow your savings over time. Small contributions can add up over the years and make a significant impact on your family's ability to afford college.2. Research financial Aid Options:
Take the time to research different financial aid options available to your child. Options might include and are not limited to scholarships, grants, and loans. Encourage your child to apply for as many scholarships as possible. This will increase their chances of receiving financial assistance. Aforementioned, be sure to also complete the FAFSA to determine your eligibility for federal financial aid.3. Create a Budget:
Sit down with your child and create a budget that outlines all of the potential expenses they will incur while in college. Budgeting ahead of time will help you understand how much money you will need to set aside each month to cover these expenses. Be sure to include all costs (tuition + cost of attendance) and then add some to get the most accurate saving goal. It's better to over prepare the number needed than to under prepare.4. Consider Alternative Options:
If the cost of attending a traditional four-year college or university is out of reach, consider alternative options such as taking a gap year or tech and trade colleges. These options can be more affordable and may even allow your child to commit to a four-year institution later on.5. Encourage Your Child to Work:
Many students work part-time jobs while in college. This income can help offset the cost of attendance. Encourage your child to find a job on campus or in the local community to earn extra money for expenses. Things like work study, dog walking, babysitting, tutoring, and cafè gigs can all provide a solid income while diversifying your child's skill set for employers. Extra work experience can also help them gain valuable work experience and develop important skills.6. Explore Payment Plans and Financing Options:
Many colleges offer payment plans. These plans allow families to spread out the cost of tuition over several months. Additionally, some colleges offer financing options, such as low-interest loans or monthly payment plans, to help families afford the cost of attendance. Be sure to inquire about these options when discussing payment with your child's college.The cost of sending your child to college can be significant and involves more than just the tuition price. With proper planning and research, it is possible to make a four year degree more affordable for your family. Understanding the distinctions between college tuition prices and the varying costs of attendance is the first step to accurately determining a payment plan or savings goal for your family. Remember to explore financial aid options and plan ahead, too. Small financial rewards can add up quickly, but require some strategy and planning before your child's senior year.
Kaley White
Kaley earned her M.S.Ed with distinction from the University of Pennsylvania Graduate School of Education. As Director of Special Programs, Kaley manages the day-to-day operations of the SAGE Scholars Newsroom. Alongside a team of writers, she generates timely resources to help bridge the gap for students transitioning from high school to college. She currently resides in Philadelphia.Articles & Advice
Featured Articles from The SAGE Scholars Benefit
12th Grade College Preparation Timeline
Parenting a College-Age Child
