The Cost of Higher Education Learning Target(s): Understanding the difference between direct and indirect costs of college Realizing the need for students to become comparison shoppers MEASURE(S) OF SUCCESS Students will be able to: Develop a budget for the first year in college Explain why a college budget is important Time: 20 – 30 minutes depending on the length of discussion Notes: The Power Point requires that you make copies of the College Budget Worksheet.

Choices You can influence how much postsecondary education will cost. Notes: Share with students that while it is true that college is very expensive they need to remember three things:   Colleges come in all different prices just like other big ticket items like cars, houses, etc. College is an investment that shows a return. Students will increase what they earn by completing a technical certificate or a four-year degree. Students are in control of the cost of college. By being a consumer shopper, they can make key decisions about college will cost them personally. .

Questions to Ask Yourself What kind of program do you want to study? What community will fit you best? Where do you want to live? What do you want to spend on books? What kind of transportation will you need? What do you want to spend on personal expenses? Notes: Before showing Slide 2, brainstorm with students for a few minutes about what kinds of things will affect the cost of going to college. Once students have a list, show Slide 2 and compare the student list with the questions listed. 2. Hand out the first two pages of the Student Worksheet. Give students time to work through steps 1 – 3 making choices based on their personal preferences. 3. Once students have completed the ratings, hand out the third page of the student worksheet (or have students turn to the third page if stapled together) and have students fill in the degree program that they want to study and indicated their college choices i.e. technical certificate, two-year degree or four-year college. .

Direct Costs for All Students - Tuition - Fees - Books Notes: Share with students that no matter where they go to college that they will be required to pay tuition and fees. The tuition and fees will vary by program, college and whether they go to school full-time or part-time. Every program will require some kind of textbook or course materials. may be able to cut the cost of books by purchasing used books or renting books online. 4. Share with students that all colleges have two “fixed” expenses that are the same no matter what type of education you explore after high school. These expenses are the tuition/fees and books.   5. Hand out the fourth page with the Cost Examples. Allow students time to fill in the worksheet with costs that approximate their choice.

Room and Board Choices Live at home Live with friends and pay rent Live in a dorm on campus Notes: Where to live while you go to college is a very personal choice. Students have many choices and there is no one or correct answer.   6. Share with students that where they attend college and where they live is a very definite personal choice. Give them time to fill in the box for “living arrangements” for their three choices. 7. Have students complete a sub-total and discuss what students are realizing about their choices.

Indirect Costs - Transportation - Personal - Recreation Notes: Indirect costs will vary dramatically from student to student. Students will need to estimate their costs for each of the categories. Things they should consider are: Transportation costs– Cost of gas and parking on campus if they live off of campus Cost of driving or bus, train, and airplane tickets if they go to school away from home Personal – what do they spend know on clothes, shampoo, food? Recreation – what do they spend know on movies, concerts, outdoor recreation, groups they belong to? 8. Stop for a minute and relook with students the list they made up on what will impact or influence the cost of college. Move to Slide 6: Again, emphasize with students that these are “indirect costs” and represent direct personal choices related to where the college is located in comparison to their home, how much they spend for things already and what they want to do in their free time. Have students complete the information for their three choices and add everything up to have a total for all three choices.

Total Cost of Higher Education What did you learn about your choices? Notes: As a final step, have students total all of the costs. Discuss what they have learned. Begin the discussion of how they will pay for college? Do they have a plan in place? Are they planning on working or going part-time to cut costs? Share with students that the next step will be to learn about the different kinds of financial aid that are available to students to help with the cost of college.