Spending and Saving

Cost-Cutting at College—Separating the Good from the Bad

Tuition costs are rising and financial aid funds are scarce, but that doesn’t mean you should sit back and watch your college dreams go up in smoke.

Since the recession began last year, thousands of tips and tricks have been published listing ways to make college more affordable. From small shifts (like buying used textbooks rather than new) to big changes (like moving off campus to save on housing), there’s no doubt that the thousands of published ideas could save students money. But whether many—or any—of these ideas are actually feasible for the average student is another story entirely.

We decided to take a look at a couple of the more popular cost-cutting tips ourselves and determine which are worth trying and which are worth skipping when it comes to paying less for your education in the recession.

Classes
The Tip: Take more classes and graduate college in less time, thus reducing the amount you’re paying in tuition and fees.
The Savings: Depending on how much tuition costs at your institution, graduating in three years instead of four could save anywhere from $7,020 to $26,273, which is the average cost of tuition at public and private undergraduate universities according to the College Board’s 2009/2010 statistics.
The Hitch: Graduating in less than four years might not be realistic for many students, especially those majoring in more intensive majors, such as engineering.
Could it work? For those who start planning early and expect to major in a less-intensive field, graduating in three years could be doable. For the majority of college students, however, graduating in three years is a goal they probably won’t be able to meet.

Housing
The Tip: Leave behind the costs of student housing—and expensive dining hall meal plans—by moving off campus into a nearby apartment with friends.
The Savings: University housing will almost always cost more than renting your own apartment, especially if a dining hall meal plan is included in the package. Specific savings will vary depending on the cost of rent and how much cooking you plan to do at home, but an analysis from SmartMoney.com found that the average student could save $494 per semester by cutting back to a cheaper dining hall meal plan and cooking the majority of his or her meals at home.
The Hitch: While financial aid can often be used to cover the cost of on-campus housing, that isn’t always the case for off-campus expenses. In addition to the cost of rent, students also need to factor in additional fees like utilities, grocery bills, and the cost of owning a car if your new apartment isn’t within walking distance to campus.
Could it work? Whether or not living off campus will save you money depends almost entirely on the school you attend and how your specific financial aid package is set up. While getting an apartment could save some students money, it could also end up costing some people more in the long run if they’re not careful with budgeting for variable expenses like utilities and food.

Books
The Tip: Save money on textbooks by buying used, borrowing from the library or sharing with friends in the same class.
The Savings: Depending on your course load, buying only used textbooks—or borrowing a textbook from a friend—could save you hundreds of dollars each semester, according to SmartMoney.com.
The Hitch: Used textbooks can sometimes be excessively marked up with highlighters, which can be annoying. And counting on being able to borrow the right book from the library or sharing a single book with friends is sketchy, since there will inevitably come a time when the library book is unavailable or when more than one of your friends needs to use the textbook at once.
Could it work? Buying used textbooks or borrowing are definitely an easy way to save money at college, especially considering the fact that they’re commonly available at university bookstores. However, if you are serious about studying then sharing one book with multiple friends probably isn’t an option that will work for you.

Income
The Tip: Help pay your own way through college by finding a part-time job.
The Savings: Whether you’re a waiter at a restaurant or an employee at the campus bookstore, working part-time could earn you hundreds of dollars each week to put towards school-related expenses.
The Hitch: Working too many hours—to the point where you’re unable find time to study—could end up hurting your academic standing and put other scholarships and financial aid packages in jeopardy.
Could it work? Finding a part-time job is a great way to relieve some financial burden from your parents, just be careful where you decide to work. On-campus jobs are known to be the most student-friendly, with many allowing for days off before midterms and finals.

Loans
The Tip: Take out additional student loans to help offset the cost of rising tuition.
The Savings: Asking for loans won’t really be saving you money, since you’ll have to repay them in the future, but it might stop you from having to drop out of school entirely if you can no longer afford tuition with financial aid alone.
The Hitch: Obviously, student loans must be paid back with interest, which means you’ll be forking over part of your paycheck to the bank each month for years after graduation. In addition, private loans are becoming increasingly scarce, which leaves federal loans as pretty much your only option.
Could it work? As a last resort, asking your university’s loan office for an additional disbursement is definitely a way that will help you pay for the cost of college. However, since this is an idea that will end up costing you more in the long run, it’s probably best to use it as a last resort.

Tags: budget, budgets, college, education, saving money, students