Resources / Money Matters

The Real Costs of College: A Budget Reference Guide

Spread the Knowledge. Share:

College expenses extend far beyond tuition, room, and board. Here we breakdown some of the costs associated with “Greek Life", having a car, studying abroad, living off-campus, spring break trips, and unpaid internships. Understanding these costs can help you plan better, avoid hidden costs, and find ways to save.

Greek Life: Annual Cost $1,700 to $12,400

Joining a sorority or fraternity can be a significant financial commitment, but it may offer invaluable experiences such as leadership opportunities, community service, networking, and lifelong friendships. Beyond the immediate social benefits, Greek life may provide a structured social calendar, mentoring, and a sense of belonging. However, it is important to consider the costs. There are usually steep dues to pay as well as fees to participate in some activities such as formals, fundraisers, or trips.

Sorority and fraternity dues, however, can vary widely. For example, at the University of Alabama, semester dues for some sororities can reach $4,000, while at a smaller school, like Bucknell University, dues average around $1,200 per semester. Dues for sororities and fraternities that have a house can be higher than those that do not have a house. For instance, at the University of Georgia, sorority members living in the house might pay an additional $3,500 per year. New member dues are typically higher than for existing members and can include initiation fees and other one-time costs.

Ways to Save on Greek Life

• Choose to pay dues using a payment plan that is offered by many Greek organizations. For example, the sorority Alpha Chi Omega offers a plan where members can spread their annual dues over 10 monthly payments.
• Apply for Greek life scholarships. For instance, the Zeta Tau Alpha Foundation provides scholarships based on academic achievement and financial need.
• Buy used or borrow formal attire instead of buying new clothes for every event.
• Utilize free campus resources for meetings and events whenever possible.

What to Consider

Greek life is not for everyone, and many students prefer other ways to get involved or be social in college. For more options, consider checking out different student organizations and activities that might fit your interests and schedule and might also come with a lower cost. As with any club or organization, make sure you understand the cost of membership before you join.

Having a Car: Annual Cost - $2,500 to $4,700

Having a car on campus can be convenient. It gives you the ability to drive home to see family, take trips, get around campus and places around campus, run errands, and easily commute to and from a job. However, all that convenience and freedom comes with several additional costs:

Ways to Save on Car Expenses

• Use public transportation or carpool, when possible, to cut down on gas and maintenance costs.
• Look for on-campus parking discounts or lower-cost permits.
• Maintain your vehicle to prevent costly repairs. Keep up with regular maintenance like oil changes and tire rotations.
• Save on car insurance by maintaining good grades, which can qualify you for discounts. Many insurers offer “good student discounts” for maintaining a B average or higher.

What to Consider

Parking permits at some universities can be much more expensive than at other institutions. At Columbia University in New York City, parking permits average around $300 for half a month. At Kansas State, ironically, also located in a city named Manhattan, students pay only around $66 per month for parking.

Study Abroad: Semester Cost - $12,000 to $25,000

Study abroad programs can offer students with exciting and enriching experiences, such as the chance to experience new cultures, languages, and education systems. It can also enhance your resume by demonstrating adaptability and global awareness. However, it can be quite costly.

Keep in mind that study abroad programs often include a student’s tuition and fees for the academic term abroad and provide college credit. Additionally, a student’s financial aid can often be used for study abroad expenses. For example, New York University students who study at an NYU Global Academic Center pay the same registration fees as they would for on-campus courses. These courses are fully accredited and count towards a student’s degree requirements, plus financial aid packages that a student receives can be applied to study abroad programs.

Ways to Save When Studying Abroad

• Apply for study abroad scholarships and grants to reduce out-of-pocket expenses.
• Choose countries with a lower cost of living. For instance, studying in Western Europe, specifically London, is generally more expensive than in Southeast Asia.
• Participate in exchange programs that might have lower fees. Exchange programs are where students enroll at a partner university abroad while paying tuition to their home institution. These programs typically include housing and meals.
• Look for work-study opportunities or part-time jobs abroad.
• Live with a host family to save on accommodation costs and immerse yourself in the local culture.
• Plan and book travel early to secure cheaper rates.

What to Consider

Costs can differ significantly based on the country and type and length of program. For example, Vanderbilt University offers several programs in Italy that include tuition, housing, and some meals in the total cost, while travel to and from Italy, personal travel within Europe, and personal expenses are not included. Conversely, Vanderbilt’s Open Campus programs, which allow students to study in more than one destination country, include tuition and fees, but not housing, meals, or excursions.

Living Off-Campus vs. On-Campus: Annual Cost Difference - $1,000 to $5,200

Many students especially upperclassmen get tired of dorm life – the shared bathrooms, the resident assistant (RA) rules, and the limited privacy. They seek the freedom and responsibility that come with living off-campus.

While living off-campus can sometimes be cheaper than living in the dorms, students also should consider additional expenses, such as utilities, groceries, and commuting to and from school.

In addition to the costs listed above, moving into an apartment for the first time may come with additional expenses, including:

• Application Fee: $50 - $100
• Administrative Fee: $100- $300
• Security Deposit: $500 - $1,500
• First and Last Month’s Rent (sometimes needed upfront): $1,000 - $2,400
• Moving Expenses: $200 - $500
• Utility Hookup Fees: $50 - $150
• Furnishing Costs: $500 - $2,000
• Renter’s Insurance: $100- $200 (annually)
• Rent Over Summer Breaks: $1,500 - $3,600 (if not subletting)

Ways to Save When Living Off Campus

• Share housing costs with roommates.
• Use energy-efficient appliances to reduce utility bills.
• Cook meals at home instead of dining out.
• Sublet your apartment during summer breaks to avoid paying rent when you’re not there.

What to Consider

Housing costs are generally higher in large urban areas like Boston than in smaller urban areas, like Bloomington, Indiana, and suburban and rural areas. It is important to research the cost of living in the area around your school to make an informed decision. Also, factor in the convenience and potential savings of staying on campus versus the independence and responsibilities of living off-campus.

Spring Break Trip: Average Cost - $500 to $1,500

A traditional spring break trip can be a major added expense, but it also provides a memorable break from the rigors of academic life. Popular destinations often come with higher costs for travel, accommodation, food, and entertainment:

Ways to Save on Spring Break

• Book travel and accommodation early to get the best rates and avoid last-minute price increases.
• Consider alternative destinations that are less expensive but still offer great experiences.
• Split costs with friends by sharing rooms and food costs.
• Look for package deals that bundle travel, accommodation, and activities.
• Look for programs sponsored by your university that offer college credit.

Unpaid Internship: Average Cost - $1,800 to $4,300

Unpaid internships, while valuable for gaining experience and making professional connections, can be financially burdensome due to associated costs such as transportation, professional attire, and living expenses:

Ways to Save When Interning

• Look for internships that offer stipends or transportation reimbursements.
• Apply for internship grants and
• Live at home or with relatives if possible.
• Use public transportation or carpool to reduce commuting costs.
• Borrow or buy used professional attire from thrift stores.

What to Consider

When calculating the cost of an unpaid internship, it is important to also consider the money you will not be earning. For example, if a student typically works summers to earn money to pay next semester’s tuition, taking a full-time unpaid internship would mean missing out on those earnings. This opportunity cost can significantly add to the overall financial burden of an unpaid internship. Factoring in these lost wages gives a more accurate picture of the true cost of an unpaid internship.

College life encompasses a range of additional costs that can add up quickly. By understanding these expenses and exploring ways to mitigate them, you can better manage your budget and enjoy a more fulfilling college experience. For more information on how to manage your money wisely on your way to and through college, visit CollegeData’s financial literacy page.

*The costs provided above are just estimates. Always consider the variability of these costs based on your specific college or region and note that they are subject to change. Every student’s financial situation and therefore budget is likely to be different. It is important to be aware of your own financial situation before going to college to be able to plan accordingly.