July 18, 2023
The beginning of a college career is a milestone in personal finance whether a young person is becoming fully independent or venturing into a hybrid relationship still tied to the support of family and home. The average parent pays about 43 percent of college expenses, according to a 2022 Sallie Mae study, and covers another eight percent of expenses by taking out student loans. This realization proves college is a joint financial venture for most families.
How to best climb the money management mountain should be a conversation for college students and the average parents who will contribute about $13,000 per year during the quest for a college education. Before you jump off the college expenditure cliff, have these six conversations regarding paying the bills while in college.
Save by Taking Core Classes at Community College
The Louisiana Community and Technical College System operates 13 public two-year colleges in the state with transfer programs to major four-year schools. Students can take some or up to the first 60 hours of work toward a four-year degree. Core curriculum classes include English, math, science, and foreign languages. Attending community college is generally a lot cheaper than a traditional four-year college. Earning general education credits at a community college and transferring into a four-year school can help you save more money.
This plan can help you stay close to home and take advantage of many more night courses for students who are also working.
It may be hard choosing between community colleges and four-year schools. Luckily, they can go hand-in-hand. LSU, several public universities, and some private colleges have entered articulation agreements that make transferring credits from the community college system seamless.
Transfer degrees are associate degrees that transfer into part of four-year programs. Students can also choose to take just their core curriculum courses at the lower rates and transfer those classes. Visit the LCTC System to view all the schools that have signed transfer agreements for more details.
Housing: Home Sweet Home or Home Sweet Dorm
Outside of tuition and fees, housing is the next biggest expense. Consider the following:
- As a rule, even in the dorms, having roommates makes housing more affordable. Living in a four-bedroom apartment is often less expensive than a two-bedroom for just two people or a single. However, chores, budgeting, supplies, schedules, and personal conflicts may be easier to manage with fewer roommates.
- For off-campus living, rent figures can be deceptive. If electricity, gas, water, sewer, and Internet access are not included, monthly expenses can be costly. Some leases may include electricity, for example, but reserve the right to tack on extra charges if your usage exceeds what they deem “normal.”
- Parking can be problematic. You want to be sure that your vehicle will be safe from theft, break-ins and vandalism.
- Dorms will charge for any damages done to the room—including nail holes. Rental apartments will require an up-front security deposit. Check the facility's reputation for spurious charges before signing a lease. When you move out, be sure to take photos or video that shows that your space was clean and kept in good repair. A small jar of matched paint to cover any scuffs or flaws can be a wise yet low-cost investment.
- For the truly frugal student, living with family or at home offers free or low-cost housing as well as access to all of the amenities home offers.
- If you live in an apartment or dorm, food will be an added expense. You will need a campus meal plan or a grocery and cooking budget.
- If you stay at home, factor in commuting costs or the use of public transportation.
Books: Keep, Return or short-term Rentals
Depending on the year and your major, a book can be everything from a short manual to an epic lifelong resource. The College Board recently reported that students paid an average of $1,240 for books and supplies at four-year institutions and $1,460 at two-year institutions just two years ago. This represents a whopping five to eight percent of the yearly average cost of college.
The requirements vary from class to class, but the options will include buying vs. renting and keeping the books vs. selling them back. Students who buy their books will usually earn higher grades according to a 2017 Inside Higher Ed study and some books are a useful resource after graduation in the workforce. Years later, these books still have resale potential and a selling option.
If you buy textbooks that you no longer need, you can resell them to your friends or classmates, to the campus bookstore, or through an e-commerce site. Depending on the quality of the book and the demand, you may be able to recoup a significant amount of your original purchase price. Students who rent their books will save money immediately because the rentals are much less expensive. Rental are always available in the latest editions and there’s the added convenience of not having to transport or store books to and from campus.
Top College Textbook Rental Websites
- Amazon has a massive selection of textbooks, claims to be up to 90% cheaper than competitors, and offers a 30-day return policy.
- Chegg not only lends out textbooks but also provides a free trial to its subscription service, Chegg Study. The site offers a 21-day return policy.
- eCampus allows rental extensions, instant access to e-books, and free shipping for orders over $35. It also has a 25-day return policy.
- Barnes & Noble offers competitive textbook rentals but charges for shipping. Students who pay a $5 fee can return books within 21 days.
Louisiana Grants and Scholarship Programs
The Louisiana Office of Student Financial Assistance (LOSFA) is a department of the Louisiana Board of Regents. Most Louisiana students are familiar with the popular TOPS scholarships available for high school graduates, but LOSFA is also good resource for finding grants and scholarship funding for students who have already started college.
LOSFA administers the state’s scholarship and grant programs and the state’s Internal Revenue Code Section 529 college savings program. Visit the scholarships and grants page on the LOSFA site for a full listing as well as the requirements for each program or opportunity. There is no application fee or fees of any kind when applying for scholarships and grants with LOSFA.
Part-time Jobs that Work with Course Schedules
It is difficult with some course loads, but many students can supplement what they are getting from home by getting a part-time job. The biggest advantage of the side hustle is flexibility. Restaurants may not pay much, but multiple shifts can work into class schedules and tips are a nice bonus from time to time.
The number of remote positions has increased since the start of the COVID pandemic. Online job boards make it easier than ever to find flexible jobs that are both remote and in-person. Students looking for a side hustle, however, should first consider how much time they are willing and able to commit before jumping into a job that might pull them away from the number one job of getting a college education.
Use Joint Accounts or Accounts in Which Parents can Make Deposits
The beginning of college life doesn’t always mean the allowances have come to an end. Much to the contrary, allowances might get bigger and often complicated. Instead of needing money for a trip to the mall, your college student might need a tank of gas, a new book, or trip to urgent care.
Think ahead to save money and ensure the safety of your accounts. Here are some thoughts:
- Joint La Capitol checking accounts – Setting up a joint checking or savings account means parents and students have access to money in the account and can see all transactions. This might make it simply to transfer money from the main checking account into the student’s account without fees or third-party apps like Cashapp or Venmo.
- Use of out-of-town or shared branching locations – Your college student can have the benefits of home with an account tied to one of La Cap’s 15 statewide branches or one of the more than 5,000 shared branching locations across the country.
Discover the Perks of Membership
Joint accounts offer many benefits. In addition to tracking account activity online, parents can sign up for text or email alerts when their student’s balance falls below a specified amount, for example, or when large purchases are made. Transferring money from a parent’s La Cap account is easy, particularly if all accounts holders are members.
We make it easy for college students and their supportive families. To open a Choice Checking account with us, all you have to do is become a member and maintain a Regular Savings account at La Capitol.