Controlling Indirect College Costs

Break down your expenses to see how you can stretch your college budget.

Indirect college costs are the out of pocket costs not included by the college tuition and fees. When computing the yearly cost of college, many students forget or ignore the actual expense of these costs. Because most students have always lived at home and not thought about the actual cost of living, they tend to underestimate this important part of their financial college plan. It is essential to understand all of the hidden indirect colleg costs it takes to go to college in order to be financially well prepared.

Indirect College Costs

Housing
Students may be living at home or in student housing that could be in a dorm or in an off campus rental that is not associated with the college. When comparing housing costs, all utilities are included in the dorm room rental. Check here for some ideas on saving money when furnishing and decorating a dorm room. Along with rent, off campus rentals usually involve utility charges, along with phone and internet access charges. Don't forget to include cleaning supplies in your housing budget.

If the student decides to commute from home, be sure to factor in the cost of car maintainence, insurance, gas and parking fees when comparing housing options.
Food
If choosing to eat in the campus dining room, a variety of meal plans is available. The cost will vary significantly depending on the choice of meal plan. Food is one indirect college cost the will vary greatly depending on the student habits and food preferences. Many students find jobs in local restaurants and hotels the have a meal allowance included in the wage package. When alloting money for food, try to be reasonable and don't think that you can get by without eating if your money runs out.
Books and Supplies
The cost of books will vary greatly, depending on the courses you are taking. You may be able to purchase used books from the campus store, but for planning purposes it is best to figure on the full costs. Some classes will also have other expenses such as printing and copying, course materials and lab fees. Often these fees are included in the tuition bill, but this is not a hard and fast rule so it is best to investigate the billing procedure for these college costs.
Computers
Many colleges require a student to have a computer. Check with the school to determine if you need a laptop, or if can you get by with a less expensive desktop computer. Don't forget to include and extra hardware or software that may be required for various classes. If you live off campus, you may find you have to pay a fee to hook up to the college network.
Transportation
Indirect college costs of transportation will vary greatly depending on the location of the college. As mentioned above, if you live at home, be sure to add in the commuting expenses. If you live any distance, factor in air fare or other travel expenses. Don't forget spring break and holidays will add to your yearly travel costs. Maybe you can lower these costs by car-pooling or shopping for low student airfare rates online.
Personal Expenses
Depending on lifestyle, personal expenses can take up a large part of your indirect college costs. Clothing, laundry, haircuts, cosmetics and personal care items should all be considered.
Recreation and Entertainment
One of the ways of controlling indirect college costs is recreation. It is unreasonable to think a college student can hit the books for a year without any relaxation and entertainment. This is a good place for parents to help thier child prioritize their needs and wants to help them remain on budget.

Create An Action Plan

In order to keep tabs and have some idea of the total indirect costs, it is a good idea to set all these down on paper to get an idea of what the actual cost of college looks like. Use this controlling indirect college costs monthly budget calculator to estimate your potential costs and to help you keep your expenses under control throughout your college experience.

One method of helping a student with controlling indirect college costs is for parents to decide the average amount of money spent on the student while living at home. Food, clothing, gas, phone bills etc., will all be affected once the child goes to college. By calculating the amount of money already being spent on the student, this amount could be set aside and added to the student's monthly income for living expenses while in college. If the parents can't afford to contribute anything in the way of living expenses for the student, investigate housing alternatives. Many colleges provide low-cost or no-cost housing alternatives for lower income students.

Students should take some resposibility for providing for their living expenses. If they are determined to go to college, they should be getting summer jobs as soon as they are eligible for employment. Part of their earnings should be earmarked for college. By doing this, they will be showing their parents their interest and desire to obtain a college education. After all, it is the student who is going to benefit from a college degree.

When in college, part time jobs are always an alternative. Students can seek help finding employment from the financial aid administrator's office. They may be eligible for either the Work Study Program or the school's employment program. Many businesses offer summer internships to students that offer opportunities in the student's field of study. This is a great way to get experience in thier preferred choice of profession.

If the student has a special talent or skill, this may be a way of earning extra money to augment their income. Tutoring, typing term papers, graphic arts or other computer skills are always talents that are in demand.

If work is to be part of the college experience, it is best to know this before any academic plans are made. This way you will be better prepared to incorporate working and the academic schedule prior to making academic decisions that are unreasonable and unable to be completed because of the student's work schedule. Credits are expensive. Don't go overboard thinking that 4 years of college can be completed in three if work study is to be part of the financial picture.

College as an Investment

College is an investment that doesn't come cheaply. No matter if it is an Ivy League college or the community college, it is still a large sum of money, proportionate to the financial situation of the family and controlling indirect college costs is an important part of that planning. Creating a financial plan for college costs takes time and effort. However, with the help of guidance counselors and college financial aid administrators, it can be accomplished successfully.

The main thing is to involve your college-bound child in all decisions. This is not a decision to be made by only the parents or only the child. This will affect the financial situation of the entire family. As such, both parents and child need to know exactly where they stand and what is expected from each of them. Do not let this discussion slide and wait to see what happens. Open the lines of communication as soon as the parents or child expresses an interest in the child receiving a college education.

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