29 Chapter 23: Understanding Your College Expenses
29 Chapter 23: Understanding Your College Expenses
Basic Financial Literacy: Understanding YOUR college Expenses
Equipping yourself with the knowledge and skills necessary to make the best decisions when it comes to financing your college education is a skill many take for granted. The chapter on financial literacy will give you the confidence to make informed financial decisions and start your future off on the right foot.
Paying for college is an undeniable component of the educational process. While there are political discussions underway about making college free, at this point in time, students must pay for college themselves or with the help of others. Understanding the factors that combine to create the overall cost of a college education can help a student make decisions about the college that is right for him or her.
Today’s colleges are in a competitive market for students. Thinking about the services you as a student need or want from a college environment can help define what is personally important and what you are willing to pay for.
Expenses you may encounter:
- How much is the degree or certificate you want to earn going to cost?
- What factors go into the cost of the college?
- What costs are included in tuition?
- What costs are not included in tuition?
- What is college worth to you?
- How much money can you afford to spend on college?
- Where can you get financing for college if you need help paying for it?
- How much money do you think you could afford on a monthly basis to pay back a loan related to financing college?
- What is the current interest rate on student loans?
- Are interest rates all the same?
- What do you think your life will be like after college?
College costs can be measured by 7 main categories:
- Tuition: The price you pay for taking college classes is based on the number of credits you are taking at your college and the academic program you choose. Tuition is also affected by selecting a school in the state where you live, and by whether the school is public, private, for-profit, or non-profit. Tuition amounts can sometimes change based on your program and the number of credits you take.
- Fees: Academic programs may have additional fees beyond tuition costs. For example, a student majoring in culinary arts will need specialized tools to participate in that program. Services the college provides to students can have associated fees. For example, a student health center may have a basic fee that all students must pay whether they use the service or not. Some colleges have dining fees that give students food cards to use on campus. Student fees are not fees students can opt out of. It is important for students to examine a college’s fee structure and maximize the services that are being paid for by fees.
- Books and supplies: The cost of books and the supplies students will need to complete a program can vary greatly. Books and supplies can add $1000 or more to the annual tuition cost. This is an important