Douglas Olsen
The cost of college attendance (CoA) includes tuition and fees, books and supplies, room and board, transportation, and daily living expenses. The average CoA for a student living on campus at a public four-year institution is $27,146 per year, while private nonprofit universities cost $58,628 per year. As a result, many college students are taking on the financial burden of paying for their education, with 65-67% of students shouldering the expenses completely on their own. This shift towards financial independence has been accompanied by a decrease in reliance on parents' funds, with only about 10% of students having their college expenses fully covered by their parents. Despite the financial strain, most students believe in the value of a college degree and are willing to make sacrifices to obtain one.
| Characteristics | Values |
|---|---|
| Percentage of college students paying for their own education | 67% |
| Percentage of college students who believe in the value of a degree | 78% |
| Percentage of college students with $250 or less left after paying for education costs each month | 46% |
| Average cost of attendance for a student living on campus at an in-state public 4-year institution per year | $27,146 |
| Average cost of attendance for a student living on campus at an in-state public 4-year institution over 4 years | $108,584 |
| Average cost of attendance for a student living on campus at an out-of-state 4-year institution per year | $45,708 |
| Average cost of attendance for a student living on campus at an out-of-state 4-year institution over 4 years | $182,832 |
| Average cost of attendance for a student living on campus at a private nonprofit 4-year institution per year | $58,628 |
| Average cost of attendance for a student living on campus at a private nonprofit 4-year institution over 4 years | $234,512 |
| Average cost of a meal plan per month | $450 |
| Average monthly housing cost in California | $1,360 - $2,649 |
| Average monthly housing cost in Pennsylvania | $872 - $1,259 |
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What You'll Learn
Two-thirds of college students pay for their education
The high cost of college education has been a significant concern for students and their families. In 2022, a Cengage survey polled 1,200 American college students aged 18-44 from various colleges and income levels. The survey revealed that two-thirds, or 67%, of college students were fully paying for their education. This percentage included those attending both two-year and four-year colleges.
The survey highlighted the financial struggles faced by students in pursuing their degrees. While they were determined to obtain their degrees, managing the costs proved challenging, even with loans. Tuition was identified as the most significant expense, followed by technology/laptops and books/course materials. The high costs have led to students seeking alternative funding methods, with some working at least 20 hours per week while studying full-time.
The survey also indicated a shift in funding sources, with more students using their savings and income to pay for college. In 2022, 45% of respondents at four-year colleges relied on their own funds, an increase from 37% in 2019. This shift may be due to the rising cost of college, as the average cost of attendance for a four-year degree ranges from $108,584 to $234,512.
Despite the financial challenges, students still strongly believed in the value of a college education. They recognized the potential for better job prospects and financial independence upon graduation. However, they expressed a desire for lower tuition fees and more affordable course materials. This sentiment was shared by a significant number of students, with 36% suggesting that lowering tuition would be the most impactful way to improve affordability.
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The average cost of attendance for a 4-year degree is $108,584
The cost of a college education has been a growing concern for students and their families. The average cost of attendance for a 4-year degree is $108,584 for an in-state student at a public institution, and this figure can vary depending on several factors. Firstly, the type of institution plays a significant role. Private nonprofit institutions are significantly more expensive, with an average cost of attendance of $58,628 per year, or $234,512 over four years. Private for-profit institutions also vary in cost, with some sources citing an average of $33,600 per year, while others mention $16,444 in tuition and fees.
The second major factor influencing the cost is whether a student is paying in-state or out-of-state tuition. Out-of-state students at public institutions pay $45,708 per year, or $182,832 over four years, which is a substantial increase. The cost of attendance also includes various expenses beyond just tuition. It covers the cost of books and supplies, room and board, and other mandatory fees. For instance, students at public 4-year institutions spend an average of $1,220 per year on textbooks and supplies, while those at private nonprofit institutions spend around $1,215.
The cost of attendance can also be influenced by the specific program or major a student chooses. Some programs may require more expensive materials, equipment, or laboratory access, which can drive up the overall cost. Additionally, a student's living arrangements can impact the cost. Living on campus tends to be more expensive, while living off-campus, especially with family, can reduce expenses.
The rising cost of college has led to an increase in students paying for their education independently. According to a College Ave Student Loans survey, 45% of respondents at four-year colleges funded their education through their savings and income, reflecting a shift away from relying solely on parental funds. This trend underscores the financial burden that students are shouldering in pursuit of a college degree.
While the average cost of attendance for a 4-year degree is substantial, it is important to note that there are various financial aid options available, including scholarships, grants, and federal student loans. Many students utilize a combination of these resources to finance their education. However, the rising cost of attendance has outpaced wage inflation, and the issue of college affordability remains a significant challenge for students and their families.
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Students want lower tuition fees and better learning support
The rising cost of college tuition is a significant concern for students, with affordability being a major barrier for many. A survey by Cengage found that 36% of students believe that lowering tuition fees is the most impactful way for educational institutions to reduce the overall cost of education. This is followed by 21% who cited providing more affordable access to course materials.
The average cost of attendance for a student living on campus at an in-state public four-year institution is $27,146 per year, with out-of-state students paying $45,708. Private, nonprofit university students pay $58,628 per year. Tuition and fees make up the bulk of these costs, with the average cost of tuition at a four-year institution being $17,709. At public four-year institutions, the average cost of tuition is $9,750 for in-state students and $28,445 for out-of-state students. The cost of tuition has increased significantly over time, far outpacing wage inflation.
The burden of college costs falls disproportionately on low-income students, students of colour, and those from marginalized communities. Deep state cuts in funding for higher education have contributed to significant tuition increases, making it harder for students to enroll and graduate. These funding cuts have also worsened inequality, as rising tuition costs deter students from low-income backgrounds and students of colour from pursuing higher education.
Students are increasingly relying on their own savings and income to pay for college, with 45% of respondents in a College Ave Student Loans survey citing this as their primary method of payment. This is an increase from 37% in 2019. The survey also found that fewer students reported feeling stressed about the cost of college, with 68% reporting stress in 2022 compared to 83% the previous year. However, it is important to note that the majority of students still believe in the value of a college education and are willing to make sacrifices to obtain a degree.
To address the concerns of students and make college more accessible and affordable, institutions can explore partnerships to expand access to affordable course materials. Additionally, schools should provide clear and transparent information about the cost of attendance, including potential increases in tuition, to help students make informed decisions and budget accordingly. By prioritizing the needs of students and focusing on making education more accessible and affordable, institutions can ensure that students receive the support they need to succeed in their academic pursuits.
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The average student borrower spends 20 years paying off loans
A significant number of college students are paying for their education with their own savings and income. According to a survey by College Ave Student Loans, 45% of students at four-year colleges said they paid for their education themselves, an increase from 37% in 2019. This shift may be due to the rising cost of tuition and fees, which have increased significantly over time, even after adjusting for inflation. The average cost of tuition at a four-year institution is $17,709, and the total cost of attendance (including tuition, fees, books, room, and board) for an in-state public four-year institution is $27,146 per year, or $108,584 over four years. Out-of-state students at public institutions pay $45,708 per year, while private nonprofit university students pay $58,628 per year.
The rising cost of college has led to an increase in student loan debt, with the national student loan debt balance increasing consistently over the years. As a result, many students are taking on substantial debt to finance their education. The average student borrower spends roughly 20 years paying off their loans, and the ultimate price of a bachelor's degree, including lost income and loan interest, can be as high as $562,868. This lengthy repayment period is due to the significant loan amounts; the average student borrows over $30,000 to pursue a bachelor's degree, and the average federal student loan debt is $39,075 per borrower.
The impact of student loan debt varies across different groups. For example, 44.6% of borrowers are on a standard 10-year plan, while 5.7% are on a fixed payment plan of over 10 years. Additionally, 24.3% of borrowers are on the SAVE payment plan, which bases payments on a percentage of their income. However, 21% of borrowers see their total student loan debt balance increase in the first five years due to interest accumulation. The repayment period can also differ based on the field of study. For instance, top-earning doctors can pay off their student loans in a minimum of 2 years, while first-year residents often struggle to pay the interest on their loans.
The burden of student loan debt is not limited to borrowers but also affects their families. While some students receive financial support from their parents, many are unable to rely on this assistance. In a College Pulse survey, most parents indicated that they probably could not afford a four-year education for their children. This financial strain on families contributes to the overall challenge of affording a college education.
To address the issue of college affordability, there have been calls for lowering tuition fees and providing more affordable access to course materials. Students have expressed a preference for lower tuition costs over campus amenities, and 92% wished that course materials were included in their tuition. Institutions are exploring institutional partnerships to expand access to affordable course materials and make higher education more accessible. Additionally, students are encouraged to explore scholarship and grant opportunities, which can help reduce the overall cost of their education.
Despite the financial challenges, students still believe in the value of a college education. Many are hopeful that a degree will provide a return on investment in the form of better job prospects and higher earning potential. However, the reality of student loan debt and its long-term repayment can be a significant burden, impacting borrowers' financial decisions and opportunities well into their adult lives.
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The average college student spends $410 eating off-campus
A college education is expensive, and many students are paying for it themselves. According to a 2022 survey by Cengage, 65% of students are shouldering the costs of their education completely on their own. This is an increase from the 67% reported by the same source in 2021. Nearly half of these students are left with $250 or less each month after paying for education costs, and 14% have only $100 or less.
The cost of food is a significant expense for college students, and eating off-campus is the largest monthly food expense for those without a campus meal plan. The average college student spends $410 a month eating off-campus, which equates to around $102 per week for about 18 meals. This does not include the cost of groceries, which can range from $272–$429 per month. Students with a campus meal plan pay an average of about $450–$570 per month, depending on the source.
There are ways for students to reduce their food expenses. Eating a vegan or vegetarian diet can save a college student about 16% on their grocery bill, or about $40 a month. Making coffee at home instead of buying it daily can save about $67 per month. Students can also save money by taking advantage of student discounts at restaurants, such as 10% off at fast-food outlets, and by reducing the number of times they eat out. Small behaviour changes can help curb costs, such as hosting a potluck dinner with friends instead of going out for pasta. Students can also save by substituting cheaper ingredients, such as frozen vegetables or natural gluten-free products, for more expensive options.
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Frequently asked questions
According to a survey by Cengage, 65% of college students are shouldering the cost of their education completely on their own. Another survey by College Ave Student Loans and Barnes & Noble College Insights found that 45% of students at four-year colleges paid for their education with their own savings and income.
The average cost of attendance for a student living on campus at an in-state public four-year institution is $27,146 per year. At out-of-state public institutions, this figure rises to $45,708 per year, while private nonprofit universities charge $58,628 per year. Tuition and fees make up the bulk of these costs, with other significant expenses including housing, food, books, and supplies.
Financial support for college students can come in the form of scholarships, grants, work-study programs, and student loans. Federal student aid is a significant source of funding, and colleges may use the Free Application for Federal Student Aid (FAFSA) when allocating scholarships and grants. Private student loans are also available from lenders like SoFi, which can cover school-certified costs such as tuition, books, supplies, room and board, and transportation.
College students' monthly budgets vary depending on factors such as geographic location, on-campus or off-campus living, the type of institution, and personal habits. Food costs, including grocery shopping, meal plans, takeout, and dining out, are significant expenses that can be reduced through careful budgeting. Housing costs can also vary considerably based on location, occupancy, and the number of roommates. Transportation costs should also be factored into the monthly budget, especially for off-campus students.
