How to Budget for College Expenses Beyond Tuition

A college student looks into the distance while standing outside a classroom and holding books.

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Harvard University recently announced that undergraduate tuition will be free for families earning $200,000 or less beginning with the 2025-26 academic year.

The university joins a growing number of institutions that are expanding financial access to higher education for families who would otherwise struggle to afford it.

The Massachusetts Institute of Technology (MIT) and the University of Pennsylvania, for example, also offer free tuition for families earning less than $200,000.

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The University of Michigan waives tuition and mandatory fees for in-state students whose families earn less than $125,000, and the University of Texas does so for families earning less than $100,000.

Many of these tuition-free offerings have strings attached, including state residency requirements (primarily for public institutions), full-time attendance and minimum grade-point-average requirements.

While a tuition-free education helps lessen the financial burden of paying for college, it doesn’t mean attending is cost-free, says Betsy Mayotte, president and founder of The Institution of Student Loan Advisors (TISLA), a website that offers free student loan advice.

Mandatory student fees, which typically cover certain administrative, service or activity costs, may not be included in the tuition waiver.

And housing, food, books, health insurance, transportation and child care might not be part of the aid package, so families have to budget for those expenses, Mayotte says.

These non-tuition expenses can add thousands of dollars to annual attendance costs. At Harvard, for example, undergraduate tuition is $56,550, but the total cost of attendance is nearly $83,000, with about $26,000 for non-tuition expenses, according to the university’s website.

College expenses outside of tuition

It’s a good idea to create a comprehensive budget that accounts for college attendance expenses outside of tuition. These may include:

Housing and meals (on or off campus)
Textbooks and course materials
Computers and other technology needs
Local transportation costs
Health insurance
Travel expenses to visit home
Club or activities fees
Personal expenses, such as clothing and household items

Most universities publish these estimated expenses on their websites to help families budget for their all-in costs.

You may be able to reduce the costs by applying for work-study opportunities and external scholarships that cover non-tuition expenses.

Your high school counselor can help you identify scholarships you qualify for, or you can look up options at CareerOneStop.org, the Department of Labor’s online scholarship search tool.

Even if your tuition is covered, fill out the Free Application for Federal Student Aid (FAFSA) form to see what other financial assistance you qualify for, Mayotte recommends.

Federal student loans can provide a safety net in case tuition-free coverage changes unexpectedly or you no longer qualify for it, she adds.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.