Many people overestimate the cost of college or believe that all schools are expensive. For example, a recent Gallup survey indicated that 13-to 21-year-olds overestimated the average cost of public two-and four-year colleges by more than three times the actual figure. The same group estimated that the costs of private four-year colleges were one-third higher than they actually were.

Although some colleges are expensive, costs vary from institution to institution. In addition, the availability of financial aid -- money available from various sources to help students pay for college -- can make even an expensive college affordable for a qualified student.

The basic costs of college are tuition, fees, and other expenses:

Tuition is the amount of money that colleges charge for instruction and for the use of some facilities, such as libraries. Tuition can range from a few hundred dollars per year to more than $20,000. The least costly option for postsecondary education is typically a local community college where the average tuition and fees are generally under $1,500 per year. There are also many four-year colleges and universities that are relatively inexpensive. For example, Chart 4 shows that a little less than half of the students who attend four-year colleges go to institutions that charge less than $3,000 in tuition and fees. This occurs because about 68 percent of the students who attend four-year colleges attend public institutions whose tuitions are much lower than those of private institutions.

Fees are charges (usually small) that cover costs generally not associated with the student's course load, such as costs of some athletic activities, student activities, clubs, and special events.

Besides tuition and fees, students at most colleges and universities pay for room, board, books, supplies, transportation, and other miscellaneous costs. "Room and board" refers to the cost of housing and food. Typical college costs are listed in Chart 5 below.

CHART 5

            Tuition                 Books          

            Fees                    Supplies

            Room                    Transportation 

            Board                   Miscellaneous 

                                       Expenses  

Typical College Costs Tuition at Public and Private Colleges

It is important to know the difference between public and private institutions. A school's private or public status has a lot to do with its tuition.

Over three-quarters of all students in two-and four-year colleges attend State or other public colleges. Since these schools receive a large proportion of their budgets from State or local government, they can charge students who live in that State (in-State students) relatively low tuition. Students from other States (out-of-State students) usually pay higher tuition.

If the costs of room, board, books, supplies, transportation, and other personal expenses are added to tuition and fees, the average total cost of attending a public four-year college was $9,285 in 1995-96. Since many students who attend two-year public schools live at home, the average total cost of attending a two-year public college in 1995-96 was $5,752. This includes the cost of tuition, fees, books, supplies, transportation, and other personal expenses for a commuter student.

Private (sometimes called "independent") institutions charge the same tuition for both in-State and out-of-State students. Private college tuitions tend to be higher than those of public colleges because private schools receive less financial support from States and local governments.

Most private colleges are "non-profit." Other private postsecondary schools -- mostly vocational and trade schools -- are "proprietary." Such institutions are legally permitted to make a profit. Students at private colleges in 1995-96 faced an average tuition and fees of $12,432 per year at four-year colleges and $6,350 per year at two-year non-profit colleges.

If the costs of room, board, books, supplies, transportation, and other personal expenses are added to tuition and fees, the average total cost of attending a private four-year college was $19,762 in 1995-96. If these same kinds of costs are added to the tuition and fees of a two-year private college, the average total cost of attending such a school was $12,710 in 1995-96.

Chart 6 below shows the average tuition and fees faced by students at four different kinds of colleges in school year 1995- 96.

By the time your child is ready to attend college, the tuition, fees, and costs of room, board, and other expenses will be larger than the amounts discussed in this handbook. Because there are many factors that affect the costs of a college education, it is impossible to know exactly how much colleges will charge when your child is ready to enroll. Be cautious when people tell you a particular amount; no one can be sure how much costs will change over time. In addition, as college costs increase, the amount of money you earn, and thus the amount you will have available to pay for college, will also rise.