Categorized | Business

Make College More Affordable by Saving Money on Non-Billable Expenses

Star Staff ReportsMoney graphic

When it comes to comparing the costs of various colleges, remember that on the broadest level, costs are divided into billable and non-billable costs. To save money, follow these tips from KHEAA.
Billable costs are what you have to pay to start college. At a minimum, these costs include tuition and fees. If you’re going to live in school-provided housing, billable costs will also include room and board. These costs are called billable because the school will bill you for them.
Non-billable costs include textbooks; supplies, such as laptops and tablets; transportation; and personal items, such as shampoo, clothes, entertainment, laundry, and other expenses.
You can save money, sometimes a lot of money, in room and board and non-billable costs.
Textbooks are expensive, but you can save money by buying used books if possible. Renting books is an option. Some schools now include the cost of renting textbooks in tuition and fees.
If you’re attending a school nearby, you can save room and board by commuting from home. You can also cut room and board costs by sharing an apartment with friends. However, some colleges require freshmen to live on campus their first year.
It’s a good idea to compare billable and non-billable costs at the colleges you’re considering. Once you’ve done that, you and your parents can discuss ways to save.
KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college. It provides information about financial aid and financial literacy at no cost to students and parents. KHEAA provides the ThinkAhead Net Price Calculator to universities and colleges. The calculator, available on a school’s website, lets students and parents determine their out-of-pocket costs for attending that school. KHEAA also helps colleges manage their student loan default rates and verify information submitted on the FAFSA.
In addition, KHEAA disburses private Advantage Education Loans on behalf of its sister agency, KHESLC. For more information about Advantage Education Loans, visit www.kheslc.com.
Money Tips for Students, May 2014

Now is the time to start planning for retirement
Retirement may be the farthest thing from your mind when you’re still in school, but now is the time to start thinking about how you will support yourself after you retire. In fact, the farther away it is, the better off you may be, according to KHEAA.
For decades, U.S. citizens have depended on Social Security for much of their retirement income. However, Social Security benefits for younger workers are not guaranteed.
Another source of retirement income for many people has been pensions. But many companies are scaling back or ending their pension plans.
When it comes to retirement, you should hope for the best but prepare for the worst.
Every time you get paid, set something aside for retirement. A little can go a long way. For example, if you save $200 per month for 40 years without earning any interest, you will have saved $96,000. But if you can invest that money at 2.5 percent interest, you will have more than $164,000 saved.
Develop and maintain a budget that includes saving as much as you can, then invest those savings wisely. When you begin your career, work with an investment professional to pick the plan that is best for you. Even if you don’t have Social Security or a pension upon retiring, you will still have something to help get you through your retirement years.
KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college. It provides information about financial aid and financial literacy at no cost to students and parents. KHEAA provides the ThinkAhead Net Price Calculator to universities and colleges. The calculator, available on a school’s website, lets students and parents determine their out-of-pocket costs for attending that school. KHEAA also helps colleges manage their student loan default rates and verify information submitted on the Free Application for Federal Student Aid (FAFSA).
In addition, KHEAA disburses private Advantage Education Loans on behalf of its sister agency, KHESLC. For more information about Advantage Education Loans, visit www.kheslc.com.

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