Student finance: adding up the true cost of university (2024)

FAQs

When you calculate your true cost of going to college? ›

That's the cost of everything–tuition, fees, housing, food, books and supplies—minus the grant aid and discounts a student gets from the federal government, the school or the state. (In other words, we don't count loans as reducing your net cost.)

Factoring in the average cost of room and board at college

Then there's the costs of books, transportation, and miscellaneous charges that, when added to tuition and room and board, add up to what's called the total cost of education or net cost of attendance (COA).

Increased demand for a college education, less funding from state governments and increases in administrative and operating costs have contributed to a higher cost. Students can afford college by seeking funding sources such as scholarships, student loans and work-study to help foot the bill.

Cost of attendance is calculating if you add together an estimate of tuition, fees, room and board, books, supplies and other higher education expenses.

Just check out the financial aid section of the college's website, or search for the net price calculator on the college's homepage. Net price calculators often require you to enter personal and financial information to better understand your financial situation.

Students must account for more than tuition when budgeting for college. Hidden fees can include the cost of textbooks, transportation, and joining a club. Participating in Greek life and living off campus also impact how much students spend.

Why is college worth it? There are many positives to attending college: higher wages, stronger recession resilience, lower unemployment rates, the list goes on. Plus, many employers require or prefer a college degree for many professional roles.

The biggest chunk of college costs is usually tuition – the amount of money required for instruction. Especially at the undergraduate level, students are often required to pay fees, and these additional costs usually need to be paid to enroll in and attend class.

One of the most discussed ways to make college more affordable and reduce debt is to offer more financial aid to low-income students, for example by making the federal Pell grant or state grant programs more generous.

Universities Are Investing in More Student Services

As schools invest more to attract students, costs for students go up. Between the 2009-2010 and 2020-2021 academic years, student services expenditures increased by 58% at private institutions and 43% at public institutions, per NCES.

What is causing rising college costs? ›

Over the last 30 years, tuition costs have soared for a variety of reasons. State funding cuts, expanding administrative staffs, and increased construction and facility costs all play a role. As a result, the average student debt among college graduates is now close to $28,000.

Tuition is the price you pay for classes. Along with tuition, you'll probably have to pay some other fees to enroll in and attend a college. Tuition and fees vary from college to college. Other college costs include room and board, books and supplies, transportation, and personal expenses.

Cost of attendance (COA) is a college's total estimated expenses for one year including tuition, room and board, books, supplies, transportation, loan fees, and miscellaneous expenses. A school's cost of attendance is used to determine each student's eligibility for financial aid, such as grants and loans.

Eligibility for the Cal Grant is officially determined by the California Student Aid Commission (CSAC). If you apply for financial aid and the information you provided on your FAFSA indicates you meet the basic requirements to receive a Cal Grant, an “Estimated Cal Grant” will be posted to your financial aid package.

The direct opportunity costs of attending college include the cost of tuition and books. Additional opportunity costs, however, include money they you could have earned if you didn't go to college because you are giving up that money by pursuing an education.

COA is the amount it will cost a student to go to school. Most two-year and four-year colleges calculate their COA to show the total cost for the school year (for instance, for the fall and spring semesters).

The average college tuition and fees at four-year schools in 2021-2022 was $19,806. The average total cost for a year of college at a four-year school — including tuition and fees, on-campus room and board, books, supplies, and other expenses — was $36,436. That's roughly $146,000 over the course of four years.

Cost of attendance is the estimated total cost of attending college in a given year. It includes tuition and fees, books and supplies, room and board, transportation and personal expenses, and it is an official number determined by each college. Sometimes, people refer to cost of attendance as COA.