What does a year at college actually cost?
It’s known as “sticker shock”—when you’re buying an automobile. The consumer, upon seeing exactly what that car will cost, is dumbfounded. No consumers today experience more vivid “sticker shock” than parents preparing to send their child to college.
Just what did that sticker say this fall? On average, more than $37,000 per year in total expenses for on-campus students at private colleges, according to College Board.
“Fortunately for me, by the time they get to my office, they are not as much surprised as they are chagrined,” Maranatha Vice President for Business Affairs Mark Stevens (right) said. “They’re past the shock of the sticker price and they’re asking, ‘What can I do about this?’ ”
Tuition and room and board, while stunning to parents who haven’t tracked such things since their own college days in the 1980s, are figures that are readily available. It is the other costs—fees, books, personal expenses, travel—that often leave parents and students exasperated.
“There is a big difference between tuition plus room and board and the actual cost of attendance,” said Maranatha Associate Director of Financial Aid Bruce Roth.
Fees
Fees can vary wildly from school to school and major to major. At Maranatha alone, there are 44 different fees that can be assessed, from library testing service ($2) to parking ($55 per semester) to private music lessons ($350 for 60 minutes per week), but many colleges have hundreds of fees—some you can easily find and some you can’t. Most colleges charge a comprehensive fee that covers a variety of student benefits.
“Tuition, by itself, doesn’t tell the whole story,” Stevens said. “There are colleges with lower tuition but much higher fees.”
Not all colleges are forthcoming about their fees. Parents doing comparison shopping should ask for a fee schedule. If the school appears hesitant to give out that information, it’s “buyer beware” for the consumer. Get it in writing!
Books
The cost of books can also encompass quite a range, based primarily on the student’s major. Nursing students can spend as much as $750 per semester on books. Other students can spend as little as $300 while buying all new books.
The cheaper alternative is used books.
“Students can buy used books through our website, through Amazon, or any one of a number of other websites,” Roth said.
Personal expenses
One of Roth’s duties is to estimate the amount an average student will need for miscellaneous expenses—personal items, laundry, and, of course, pizza. This figure is used to help determine the total cost of attending college for financial aid purposes. For the 2008-09 school year, it’s more than $2,000.
“That might take some parents by surprise, but it’s something they need to take into consideration,” Roth said.
Travel expenses
The amount each student will spend to travel home during vacations will vary with geography, but the rising costs of fuel and airfare have made this a consideration as well.
“There are ways for parents to do cut travel costs, by comparison shopping online and by encouraging savings through carpooling and other ways of sharing expenses,” Roth said.
Maranatha students budget for three vacations each year (Thanksgiving, Christmas, spring break). Students who live closer to campus should budget for the occasional weekend at home as well.
Getting what you pay for
A college education is expensive, period. Many will spend more only on a home or a car during their lifetime. Parents must look first for value—a regionally accredited Christian college whose direction supports what they have already taught their children at home.
Stevens noted that, among Wisconsin’s 19 regionally accredited private colleges, Maranatha ranks 19th in total cost. Among nine fundamental Christian colleges, Maranatha ranks exactly in the middle. None of the four less-expensive schools are regionally accredited, however. The lack of regional accreditation can cause potential problems for students attempting to enter graduate schools or the job market.
If you don’t know the difference between regional and national accreditation, now is the time to learn.
“Cost is not all there is,” Stevens said. “You need to consider the value of an education as well as its cost.”
What to do?
Now that parents have an objective view of the total cost of attending college, what should they do about it?
First, plan ahead. WAY ahead.
“I wish we could interact with families of elementary school kids and help them realize just how much money they’re going to need in 10 years to send their child to college,” Stevens said. “I tell all the parents I know, ‘Start saving money now. Look into 529 plans.’ “
The 529 plans were designed to help parents put away savings for future college costs.
If it’s too late to start now, at least apply for financial aid as quickly as possible. The first place to start is the FAFSA (Free Application for Federal Student Aid) immediately after filing your tax forms.
If the financial aid comes back with less optimistic results than hoped for, loans are available. Student loans still exist in spite of the poor economy.
“The funding is there, but there are fewer lenders,” Roth said. “The interest rates are also varying pretty dramatically between lenders.”
Stevens strongly discourages taking on a large amount of debt through student loans, however.
“You’re paying our price, and the bank’s price,” Stevens said. “For a young person to be paying for their education 10 years after they’ve left college could effectively cripple their future ministries.
“I tell all the students who will listen that, right now, their ministry is to get an education. Part of that ministry might be good, old-fashioned hard work. That might seem like a last resort to some people, but that’s often what needs to be done.”
--Posted by Andrew Call, 11-21-08