When you compare your financial aid awards...

In spring, most college applicants will receive financial aid award from each college they applied to. Before you compare those offers, here is something you need to know about the real cost of college.

Adapted from: http://www.aessuccess.org/manage/newsletters/archive/2_08_Parent_Perspective.html

When you’re calculating college costs, there are two types of expenses you should consider: direct and indirect costs. Direct costs are generally billed by the college and include tuition, fees, books, and supplies. Tuition is the amount the college requires for your student to attend class. At some colleges, tuition is a flat fee; at others the tuition is based on the number of credits your student takes.

Most colleges have fees that all students pay, such as student union fees, activities fees, etc. Some students will be charged fees based on the classes they choose, such as lab fees for science laboratory classes.

The amount your student will need for books will depend on whether your student buys new or used books. They may need to purchase additional supplies for certain classes, like supplies for an art class. Many financial aid offices provide the average cost for books and supplies, but their figures tend to be on the low side. You may want to add 10 to 20 percent to the figure the college provides.

Indirect costs are not always billed by the college, but they’re expenses your student will incur. Indirect costs can include room, board, transportation and travel, personal expenses, miscellaneous expenses, and medical and dental expenses.

The amount needed to cover the 'room' expense depends on whether your student lives on-campus or off-campus. Dorm costs may vary depending on whether your student lives in a single, double, triple, or quad room. If your student lives off-campus in an apartment, don't forget to add the cost of electric and other utilities to the cost of the monthly rent.
Board costs vary widely, depending on the meal plan selected. . . and don't forget to factor in late-night snacks, dining out, etc. If your student lives off-campus, you and your student will have to estimate their weekly or monthly grocery bill.

Transportation and travel includes the cost of commuting back and forth to class and the cost of traveling home during breaks and vacation. If your student lives on-campus, there's probably no cost for commuting, unless they have a car. The amount spent traveling home depends on how often they come home and the method of transportation - train, bus, plane, or carpool.
Personal expenses include phone, laundry, entertainment, clothing, toiletries, etc. You should probably discuss these costs with your college-bound student and agree on a reasonable amount to cover their personal expenses.

You student will probably remain on your insurance while they’re in college, so their medical and dental expenses should be comparable to those of the last few years.

Miscellaneous expenses are costs beyond the basic cost of attending college. They include sorority/fraternity/club dues, tutoring, summer programs, etc.

Once you've discovered the real price of college - the total of your student's estimated direct and indirect costs at each college they're interested in attending - you'll be in a better position to compare the award packages from each college.