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It’s important to understand how much college will cost your family, both for the semester or year your student is planning to attend, and the total cost of the time it will take your student to earn their degree. Let’s break down the cost of attendance, what it is, what it includes, and how to estimate it at your student’s college.
What does “cost of attendance” mean?
Cost of attendance (sometimes referred to as the “sticker price”) is the maximum amount of money a college costs to attend for one year.
What does the cost of attendance include?
Cost of attendance includes both direct costs and indirect expenses:
- Direct costs are those paid directly to the college and include tuition and fees, housing, and meal plan.
- Tuition is the amount you owe to attend college for classes and instruction. Some colleges may charge one set tuition rate while others may charge per credit hour.
- Fees are additional charges to cover the costs of certain services, for example, technology or lab fees. It’s worth noting these types of fees will vary per college.
- Housing is a charge from the college to live on campus. Different housing options on campus will cost different amounts depending on the amenities offered. Be sure to look up the different housing options at your college.
- Meal plans are how students pay colleges to dine on campus. Colleges have different approaches to charging for meal plans, with some offering meal credits and others charging per food item. Check with the college your student is thinking about attending to see what type of meal plans they offer and how they will impact the cost to you.
- Institutional health insurance may be required depending on the college. If it’s required, it will be automatically billed to your student and can cost several thousand dollars. If your family has a comparable health insurance plan, your student can submit proof of the plan to waive this charge from their bill.
- Indirect expenses are educational costs not paid directly to the college. They can include textbooks, transportation, dorm furnishings, and other personal expenses.
How do you calculate the cost of attendance?
While colleges provide the cost of attendance, these costs often vary from student to student, so it’s important to understand how much college will cost for your family. In addition to the direct costs like tuition and fees, you can often find estimates for indirect expenses on college websites. These amounts can vary widely based on many factors, including your student’s academic year, how far your family lives from college, and the extracurricular activities your student participates in. Start by looking at estimates provided by the college and then factor in anticipated expenses.
Why is the cost of attendance important?
The cost of attendance is the maximum amount your family would pay for one year of college before financial aid is applied. Understanding the cost of attendance can help you put your financial aid into perspective and prepare for out-of-pocket costs.
Will my student pay the full cost of attendance?
Most students will not pay the full cost of attendance. While the cost of attendance is an important number to understand, make sure to factor in the financial aid your family is receiving. The cost after financial aid has been applied is the amount that your family will have to pay out of pocket to attend college. Check out this article for more information about covering the remaining bill.
Learn more about paying for college, find scholarship opportunities and explore planning for college resources at BigFuture.Collegeboard.org!
Photo Credit: Photo provided by College Board Photographer: Michael Bevans
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