Planning ahead: next year’s expenses

By Suzanne Shaffer

The summer before the start of college, you had a rough idea of what a year of higher education would cost. You knew the price of tuition, room and board; other expenses weren’t quite as defined.

Now, with a term behind you, you can sit down with your student and crunch the numbers. Did they spend more on food and entertainment than planned? How much were textbooks? What about travel to and from campus, and also local transportation? (Those Uber trips really add up.) If there’s a shortfall this year, and/ or you’re looking at a tuition increase next year, you can work together to find ways your student can economize or boost their income.

Five strategies to consider:

1.Get the most financial aid.

Students who receive financial aid (or would like to be considered for financial aid) must reapply each year. Priority deadlines at many schools fall between January and March, so hop to it! If there’s been a change in your family’s financial situation that isn’t captured by the FAFSA (Free Application for Federal Student Aid, studentaid.ed.gov), your student should meet with staff in the college’s financial aid office to communicate this and if necessary petition for an adjustment to their aid award.

While you’re on this subject, be sure your student understands the connection between financial aid and academic performance. There are usually conditions attached to the financial aid award such as taking a certain number of credit hours or making satisfactory academic progress. If a poor or failing grade this term might jeopardize your student’s eligibility for institutional grants or scholarships, they should meet ASAP with their academic advisor to discuss options such as retaking a class.

There’s a common misperception that scholarships are only available for high school seniors but nothing could be further from the truth. Scholarships for current college students may be career or major specific and sometimes come in the form of grants and fellowships. To begin the search, your student should contact the financial aid office and campus career center. Professors may have information about scholarships opportunities as well. Your student can also use popular search engines like Scholarships.com, Scholly, Chegg and Cappex.

3.Maximize earnings over the summer and consider schoolyear employment.

College students who work part-time (15–20 hours/week max) during the school year get better grades than those who don’t. Many on-campus departments hire students: Admissions, the recreation center, the library, dining facilities, the bookstore, campus museums and galleries, the theatre, and the Alumni Office. Faculty hire students as teaching and research assistants, and students can also apply to be Resident Advisors (RAs), who typically receive free or reduced price on-campus housing.

4.Re-evaluate the meal plan.

Don’t pay for meals your student doesn’t eat! 5.Tweak travel expenditures.

If outlays on travel added up to more than was ideal, negotiate how many times your student will come home next school year. By deciding this now, they are forewarned and can come up with other ways to spend some of those breaks. Many schools plan activities, including service trips, for students who stick around while classes aren’t in session.

Don’t forget to keep track of any loans. You and your student may use federal or private student loans to help pay for college. If the amount received was more than tuition, there might be “extra” money available. Since repayment is usually deferred until graduation, it can be tempting to spend this money and then take out more loans for next year. Be sure your student understands how much money has been borrowed and who will be responsible for repaying it. This is not “free” money; it’s borrowed money.

Study abroad changes the picture, so you will need to adjust your budget accordingly. The college study abroad office can help your student estimate what the time away will cost compared to staying on campus. If your student gets to choose their type of housing, a homestay is typically less expensive than an apartment.