College Costs Beyond Tuition

Parents usually plan for the expense of college but forget about the discretionary cost during the nine-month period when their child is away. When calculating college costs, parents also need to take into consideration incidental costs. These costs include such expenses as transportation and travel, personal expenses, medical and dental expenses, and miscellaneous expenses. Student Monitor, a marketing firm that tracks the spending habits of college students, figures that students spend nearly $7,000 over nine months. Their breakdown includes -- $61 per month for food outside the meal plan, $67 for clothes, $44 for entertainment – but it also includes $162 per month in auto-related expenses, which wouldn’t apply if the student doesn’t have a car, and $163 in discretionary expenses on top of everything else.

Health Insurance: Many universities will automatically charge the student for health insurance. If the parents are keeping the student on their policy, they should be sure to complete a waiver before classes begin.

Books & Supplies: The amount the student needs for books depends on whether the student buys new or used books. The student may need to purchase additional supplies for certain classes, like supplies for a science or an art class. While many financial aid offices provide the average cost for books and supplies, their figures tend to be on the low side.

Room & Board: The amount needed to cover the room expense depends on whether the student lives on campus or off campus. Dorm costs may vary depending on whether the student lives in a single, double, triple, or quad room. If the student lives off campus, don’t forget to add the costs of groceries, and electric and other utilities to the monthly rent.

Computer: Many schools require each student to have a PC. The student will need to check the school’s admissions requirements to determine whether he/she needs a basic PC or a more expensive laptop. And don’t forget additional expenses, such as software and hooking up to the school network if the student lives off campus.

Property insurance: Most homeowners policies fully cover personal possessions in dorm rooms, although some will have a limit of 10 percent of the value of the policy. If the student lives off campus, the parents may have to take out a renters policy.

Credit Cards & ATM Cards: College students are of age and can get a credit card – or six – without parental permission. College is rife with temptations to overspend – a cool new cell phone, MP3 player or video game system, or that fun trip planned for spring break. Then there is the cost of late-night pizzas, phone bills or gas for the car. A study by Manning called “Credit Cards on Campus” states, (1) three out of five students with credit cards maxed them out during their freshman year, (2) three out of five freshmen with multiple credit cards used bank cards to pay for other revolving credit accounts and (3) nearly three-fourths of students use their student loans to pay credit card bills. It is very easy to charge on plastic and run up large bills. ATMs have sprouted up on college campuses and make it very easy to extract money, 24 hours a day.