Paying for the Hidden Costs of College
Paying for the cost of college involves much more than simply taking care of the costs of tuition and other required fees. Some of the costs for college might be included in the cost of attendance published by the college, but the actual costs will typically be higher than the estimates. For example, the costs for transportation and textbooks tend to be underestimated.
Also, some of the fees will not be included on the college’s list of required fees. Some fees are class specific and can include costs for things like lab fees, practice or studio room time, and materials. The same holds true for per use type fees such as those associated with weight rooms, pools, and athletic facilities.
Some colleges will also have what are known as differential fees and tuition where specific majors might cost more than others. Most will charge more if you decide to take additional classes.
Then you have the costs that are not eligible for things like financial aid. These can include costs that are incurred before enrollment as well as fees for graduate admissions tests, application fees, and test prep. Additionally, the cost of any licensing exams or post-undergraduate visits to campus will not be covered by financial aid.
There are quite a few other hidden expenses when it comes to colleges and they can add up to a few thousand dollars over the time spent at college. You will need to plan for these fees and costs. Let’s take a peek at a few ways that you can find the money to pay for them.
Credit Unions
Credit unions are a great place to get a loan that will help you pay for the hidden costs of college… the costs that will not be covered by a financial aid package. For example, a Detroit Metro Credit Union can be a great place to get a loan if you are in the Detroit area. They offer interest rates that are competitive and repayment terms that are generous. Getting a loan from a credit union can take some of that stress about money from you leaving you free to concentrate on getting your education.
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529 Plans
A 529 plan is a type of savings plan that has tax advantages and it was designed to encourage people to save for the future costs of going to college. These plans are also called qualified tuition plans and they are sponsored by educational institutions, state agencies, or the actual states and are authorized by the Internal Revenue Code in Section 529. There are 2 different types of these plans – college savings plans and pre – paid tuition plans. At least one type of these plans will be sponsored in all 50 states. Additionally, there is a group of private universities and colleges that sponsor the pre – paid tuition plan.
Life Insurance
Most people think of life insurance as something to buy to make sure that their loved ones are provided for in the event that the policyholder dies. However, life insurance policies that are not term life insurance– think universal life insurance and whole life insurance here — can actually build up a cash value that can be withdrawn or borrowed against for things like college costs.
Employment
Most colleges will offer work study type programs for those students who can qualify for them. If you are going to college and you don’t have a car, then common sense will tell you that it would be best to find a job that is close to either the campus or where you live if you live off campus. Working on or close to the campus will also keep you close to everything that is happening and in the loop with regards to your college. Working even a few hours a week can really add up and aside from giving you that money that you need for all of those hidden costs that are associated with college, it can also give you valuable work experience to add to your resume.
Yes, life in college can be expensive, but there are loopholes that can actually cut some of those costs down, you just have to find them.
