How expensive is college?: Counting the cost of third-level education

Everyone knows the cost of living is difficult to manage at the minute. But for those who are only now making the transition to adulthood, balancing that will be an even greater challenge.

Many students who will be soon attending college or university are moving from their parents paying for everything, to suddenly having to factor in their own expenditure and income for the first time.

For those who are moving out, not only is rent – an expected challenging expense – a factor, but so too are the increased costs of petrol, food, utilities and social activities as a result of the inflation seen over the past year.

But just how expensive is college? The main initial expense is registration fees. Previously €3,000 per year, it has since been reduced to €2,000 following the continuation of last year’s “once-off” reduction announced in the budget.

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But outside of that, there are many other costs that must be factored in. Dublin City University’s Student Support & Development (SS&D) office have done sample budgets, though they do emphasise that they are only estimates and each person could have a different situation.

For students living at home, the sample monthly expenditure is €709, while for those living away from home, the expense is €1733.

Celine Geraghty, financial administrator at the SS&D office, says the cost of university can “often come as a shock to students and parents”.

“Therefore, it is important to be aware of your income and expenditure before you begin your year. Financial wellness is important to all to be able to enjoy your time in university,” Geraghty says.

“Preparing a budget prior to commencing your year, reassessing it monthly and adjusting, when necessary, will assist you in this goal.”

The general rule of thumb when it comes to budgeting is 50 per cent of your income should be spent on needs, 30 per cent should be on wants and 20 per cent should be on savings.

A budget, Geraghty explains, is a plan for receiving and spending money to reach a specific goal by a specific date.

Not only does this take the stress away when dealing with your financial wellbeing, there are also other benefits to having a budget in place. Geraghty says it creates self awareness and improves decision-making.

“Being aware of your strengths and weaknesses can help you to identify when and why you impulse spend. To be successful at budgeting, you need to be aware of how much money you have available to spend each week or month,” she says.

“Having a budget allows you to make informed decisions. You are in control of your money instead of it controlling you. Deciding how you want to spend, comparing costs and planning your savings helps eliminate unnecessary spending. This gives you more money for the things you really need and want. Managing your money becomes less stressful.”

Though it can be tempting, Geraghty advises students not to use credit cards because, she says, “at the end of the day, it is a loan and it does need to be paid back. And if you had a loan, it (the repayments) should be part of your budget”.

There are some simple ways to cut back on needless expenditure, with Geraghty saying it helps to “recognise opportunities to save”.

Learning to cook rather than constantly having dinner out or takeaway is an easy way to do it, bringing your lunches rather than buying them is another.

Geraghty also suggests for those sharing accommodation, a kitty could be put aside for the likes of cleaning products and toilet rolls to ensure one individual is not bearing the financial brunt.

Generic products are considerably more affordable than branded alternatives, and students should have a pre-written list of things they need before they go to the shop to prevent impulse buys.

Shopping around can highlight which shops are the most affordable for various products. While acknowledging it is not possible for a person to visit three or four different supermarkets every week, students can sign up for the Tesco clubcard, for example, or avail of Dunnes Stores’ money off vouchers.

And shopping around applies to utilities, too. Contacting the different electricity and gas companies is a great way to compare the various rates on offer.

According to switcher.ie, the average electricity customer could save up to €327 a year by switching from a standard tariff to the cheapest deal on the market, and the average gas customer can currently save up to €213 by switching to the cheapest deal.

But even with all of these steps being taken, the cost of university is enormous and the burden it places on both individuals and families is undeniable. The good news is grants are available to assist those furthering their education.

Student Universal Support Ireland (Susi) is divided into maintenance grants and fees. The grant is means-tested, based on your family’s gross income for the previous full tax year, so for those entering university in 2024, it would be the 2023 accounts.

If a family has more than one child in college at the same time, the reckonable income limits are increased. The distance a person normally lives from the college is also a factor in how much an individual is eligible to receive.

Students should also contact the relevant bursaries and scholarships offices at their institutions to see what is available to them. Not all are dependent on academic performance, some support students from particular backgrounds or locations, some support special interests or talents.

Bursaries and scholarships can be a huge help but it is important to know where to find them and how to apply, as many have deadlines a number of months in advance of them being granted.

[ My daughter wants to go to college, but I’m worried about the cost. Will she be entitled to a grant? ]

There is the 1916 bursary, for example, which is available in many higher education institutions. This particular bursary seeks to encourage participation and success by students who are most socio-economically disadvantaged and from groups most underrepresented in higher education.

Ms Geraghty says there is also the student assistance fund, which is government funding the university gets every year.

“Students can get assistance towards rent, medical bills, food etc. Students apply in October, it’s a once-off payment during the year and the average amount is €600,” she says.

“Then it opens again in February for students who didn’t apply in October. And then we do retain some funding for emergencies.”

Everyone hears about student discounts and they are of huge benefit. Discount companies like UNiDays and Student Beans offer reduced prices for purchases from shops like Asos and restaurants like Milanos.

In the run up to the return to college, companies such as Dell and Apple, or the stores that stock their products, often offer discounts, while hairdressers and beauty salons sometimes offer lower rates to students who make appointments on offpeak days like Mondays, or for those willing to act as models for trainees.

With regard to transport, the young adult Leap Card will be your best friend. It is for those aged 19-23, but will increase to 19-25 year olds from early 2024. This allows for 50 per cent fare reductions on Bus Éireann, Dublin Bus, Iarnród Éireann (including the Dart), Go-Ahead Ireland, Luas, and participating TFI Local Link services.

A daily and weekly cap has been put on the amount you can spend while using your Leap Card. Once you hit the cap, you travel free for the rest of the day or week.

For example, the weekly cap for a student using the Dart is €14.80. Students who have not yet reached their 19th birthday are eligible for even cheaper child fares, meaning they will get a week on the Dart for a €10.

For those who like to cycle and are in university in the capital, Dublin Bikes is another way to save money. An annual subscription costs €35 and the first 30 minutes of every journey is free. After this, rental charges apply in accordance with the company’s fees structure.

So, while there are huge costs associated with attending third-level or further education, there are steps that can be taken to reduce or minimise those costs.

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