Does living off-campus save college students money?
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When I was a financial aid director at Loras College, one of the money-saving ideas I often heard from students was that of moving off campus. But does living off campus really result in savings?
First, let’s clarify direct versus indirect costs. Expenses a school bills students for are considered direct costs. Any cost that isn’t billed through the institution, but that students are still required to pay, is an indirect cost. While direct housing costs may decrease if a student moves off campus, their actual housing expenses will simply change to monthly rent to a property owner. Moving off campus does not always lower costs and students must do calculations and projections to determine if they will see savings. Let’s look at some considerations for on- versus off-campus living:
- Length of time: Many off-campus leases are signed for a 12-month commitment, while on-campus leases are usually only nine months. Be sure to calculate a monthly rate for both options to compare.
- Utilities: Off-campus rent typically does not include utilities. Be sure to understand any additional costs and include those when running numbers against on-campus charges.
- Insurance: Students living on campus are generally protected under a parent’s insurance policy, whereas students living off campus may want to consider obtaining renters’ insurance. Seek cost quotes and factor this into calculations.
- Food: Students moving off campus may wish to select an alternative meal plan option from the school. But get ready to pay more each month for groceries (in addition to spending more time preparing food). If students do not cook, be sure to factor in additional fast-food options to the off-campus budget calculation.
- Changes to financial aid: Ask the college if any scholarships, grants, work, or loan options are reduced if a student moves off campus. Factor any reductions in financial aid into overall cost planning and comparisons.
