As a general rule, staying off campus has always been the cheaper option. While there are a ton of perks to staying in college dorms, renting your own apartment saves you a lot of money. Well, that has been true until recently.
Over the past few years, rent across the country has been skyrocketing. This is especially true for people who are signing a new lease. In New York, rent that was already high has become prohibitive. For students looking to save money, this has created a quandary.
Staying off campus also comes with a number of other responsibilities. If you rent an apartment, you will need students’ renters insurance coverage. You need to cook your own meals and facilitate your own transport. If you’re saving money, it’s worth it. If not, you may as well stay in the dorms.
Here’s what you need to consider.
Renting is still technically cheaper
Rent has been skyrocketing, but campus living is still more expensive. If you compare the cost of renting a New York apartment to the cost of your dorm room, it will seem like the difference is significant. However, this is something of a mirage.
The reality is that when you are living on campus, you are paying for more than a bed in a dorm. You are paying for food, entertainment, and a social life. You are paying for your proximity to your classes.
These are things that cost a lot of money off campus. Rent is not the only expense that has risen. Groceries are extremely expensive, as is eating out and going to events. With high energy prices, transport is also becoming unaffordable.
Add all of these expenses to the cost of rent and you might end up paying more than you would for a dorm room. Even if it is still cheaper to rent off campus, you will need to consider whether you are saving enough money for it to be worth it.
Budgets are theoretical
That’s if you are able to stick to the budget you’ve come up with. You may break your budget on a monthly basis in spite of your best intentions. If you’ve never lived alone before, you may underestimate the amount of motivation it takes to cook your own food every day. A budget that accommodates getting takeout once a week becomes extremely tight when you start relying on restaurant food.
It is also pertinent to note that inflation may still see prices rise. While this won’t affect the cost of rent itself in the short term, it will impact everything else on your budget. If you have a lot of confidence in your ability to maintain a strict budget, the savings may be worth it. If not, you could find yourself floundering fairly quickly.
Student loans (and interest)
Of course, if you are using student loans to pay for college, the equation becomes a little trickier. Some students on student loans cannot afford to pay for their own rent, and staying on campus is therefore a necessity. But if you can afford rent, should you avoid adding to your loans by staying off campus?
The calculations will work out differently depending on the person. However, if you can minimize the size of your student loans, it may be worth it. When your living expenses form part of your student loans, the interest you pay goes up significantly. Over time, you will pay a lot more for your residence than you would have if you rented an apartment.
Rent in New York is extremely high. For students looking to save money, high rent may be prohibitive. However, staying on campus can still be more expensive, especially if you have to pay interest on the costs.
