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Understanding the Hidden Costs of College

  

When considering planning for higher education, you might be surprised to discover that college tuition and fees are not necessarily the largest associated costs. As students begin this next phase of life, takinga look at the college’s published cost of attendance is a good idea. 

These are estimated costs (usually produced in conjunction withthe University) that change  

    

depending on the student’s chosenmajor, classroom curriculum, campus activity, and personal 

lifestyle.   

A recent survey on the current college trends reported hidden costs beyond tuitioncould easily exceed more than $3,000 to $5,000 a year per student. Unplanned or unexpected costs directly related to education include:     

Admission tests and applications   

Classroom materials and textbooks   

Droppingclassesor registering late   

Extra classes or specific majorstudy sessions   

Lab and tutoring sessions   

Per-use charges forcampus amenities   

Post-undergraduate or licensing exams   

Sorority and clubmembership fees   

Today, over 60% of U.S. undergraduates attend four-year universities, with less than 

40% attending community colleges. Tuition and fees account for 40% of four-year college costs for in-state students living on campus. That leaves 60% of an estimated budget to cover the cost of college life and study regimes.   

In some cases, undergraduates apply for grant aid to cover the non-tuition expenses. Unfortunately, grants might only cover a small portion, leaving the student responsible for the reminder. Individual lifestyle expenses each month can cost $50 to $200, or in some cases much more. The majority of these non-tuition personal living expenses associated with attending college could be overwhelming to an underestimated budget. In order to make ends meet, somestudents may find it necessary to get a part-time job.   

Student Daily Living   

Cable/satellite TV/cell phone   

Replacingdamaged or lostproperty   

Healthcare  

   

Housing and dormfurnishings   

Laundry   

Meals outside of the meal plan   

Parking and transportation   

Renter’s insurance   

As students leave campus to joinfamily and friendsduring semester and holiday breaks, these are opportunities for parents and students to review and adjusttheir budgeted livingexpenses. It is highlyrecommended for both the student and parent to be involved in the planning process. These conversations are valuable lessons and offer students an opportunity to  manage theirown spending budget as they prepare for the future.   

C

onclusion 

Whether the student attends a large university or small college, they will still face the challenge of planning for non-tuition expenses. The choice of attending a large university offering a wider range of degrees, more clubs,greater resources, and access to alumni, compared to a small college with more personalized attention for each student, can ultimately come down to theseextra costs. Be sure to think throughthem carefully before makingsuch an important life decision. Talking to a financial planner is a great way to gain extra  knowledge and move forward withconfidence.   

This content is developedfrom sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material providedare for general information, and should not be considered a solicitation for the purchase or sale of any security.sea

Information presented on this site is for informational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any product or security. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here. The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. We make no representation as to the completeness or accuracy of information provided at these web sites. Securities offered through Impactful Wealth Solutions, a Registered Investment Advisor in the State of Texas. Advisory & Insurance services offered through Impactful Wealth Solutions, 5665 Arapaho Rd. #636 Dallas, TX 75248

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