Planning for the Hidden Costs of College

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BIG Ideas:

  • Some of the hidden costs of college include books/course materials, health care, entertainment, transportation, technology, and study-abroad fees.
  • Student loans can help you pay for qualified educational expenses.
  • Try to reduce fees to eliminate having to borrow and pay back more.

If you’re attending or planning for college, you’ve probably thought about how to meet those looming college tuition bills. But don’t let the phrase “tuition bills” fool you. There’s a lot more to college expenses than just tuition.

Sure, tuition and room and board make up a big chunk of college costs, but they aren’t the only expenses; there are other hidden costs that can really add up and impact your budget.

Here’s a list of these costs and, just as important, pro tips to help you reduce or even eliminate them:

Books/course materials. Did you know? The average annual cost of textbooks exceed $1,200 at four-year institutions and $1,400 at two-year colleges. In addition, the average student pays nearly $285 per year on course materials, including study guides, lab fees, equipment, articles, websites, presentations, and other materials.

Pro tips:

  • If you can forgo “new book smell”, buy used or discount textbooks.
  • Share books with a classmate.
  • Rent textbooks.
  • Sell books you own if you don’t plan to use them for future reference.

Parking and transportation. Transportation costs can vary significantly based on your situation. For example, if you attend a school that’s far away from home, you’ll need to plan for travel expenses, such as airfare to and from school. Also, if you plan to have a car at school, you’ll likely be charged parking fees. You’ll also have the day-to-day expenses of owning a car, such as gas, oil changes, and auto repairs and maintenance.

Pro tips:

  • Check with public transportation companies to see if they offer student discounts.
  • Consider choosing a school that’s closer to home or carpooling with other students from your area.
  • Shop around for the best gas prices. 

Student health care. When you receive your bill from the college, you may see a significant fee for student health coverage as high as $2,900 a year at public colleges and $3,800 a year at private schools, on average. Colleges often automatically include this charge as part of your bill. If you are covered on your family’s health plan and don’t need coverage, you can opt out, helping to significantly reduce your bill.

Pro tips:

  • Make sure you read and follow the school’s policy and deadlines for waiving the insurance. Many schools allow you to waive coverage online.
  • You may be required to show proof of insurance or an individual plan, if choosing to opt out. Again, check with your school and their policy on opting out of coverage.
  • If you attend school in another state and have a family plan, check that your current insurance plan will cover you.
  • Remember that if you fail to waive the fee, you could end up having to pay it.

Meals and other snacks. If you’re living in an off-campus apartment, have a meal plan and don’t make it to the dining hall, or just love a morning coffee at the on-campus coffee shop, you may have additional costs that can really add up.

Pro tips:

  • Purchase a coffee maker for your dorm room or apartment to brew your own coffee.
  • Look for student discounts.
  • Buy snacks in bulk with your friends or roommates.

Other fees. From technology, sorority, and fraternity fees to fitness center classes and study-abroad programs, there are a host of other costs you may incur depending on your interests.

Pro tip:

  • Once you have an idea of the clubs or activities that interest you, make sure to budget for the fees, so there are no surprises.

Unexpected expenses. Life is unpredictable. You never know when an emergency expense, like a broken computer, car repairs, or a lost cellphone, may arise.

Pro tips:

  • Use funds from your part-time or summer job to build an emergency fund.
  • To make it easier to save, arrange to have funds automatically deposited into your savings account.
  •  Remember that your emergency fund is for unexpected expenses only, not entertainment.

Student Loans Cover Qualified Expenses

You may not be able to reduce or eliminate all the hidden costs of college, but you can prepare for them. Qualified expenses, including tuition, room and board, books and supplies, meal plans/groceries (if you live off campus), plus lab and technology, parking, and study-abroad fees, can be paid with your student loan proceeds. Remember that whatever you borrow must be paid back, so try to reduce and eliminate the fees you can.

Brazos Can Help You Afford the Cost of College

For more than 40 years, Brazos has helped parents and students afford the cost of college. As a Texas non-profit lender, we offer competitive rates on private student loans that can help you save. Contact us to learn more.