The cost of college: Which are the most affordable American college towns?

Student living expenses are more than $30,000 per year in some parts of the United States.

WalletHub released its report on 2023’s Best & Worst College Towns and Cities in America.

The personal finance website compared more than 400 American cities, grouped by city size, to help college-bound high school seniors determine their future home for the next few years. Data is based on 32 key indicators of academic, social and economic growth potential, and includes the cost of living, quality of higher education and crime rate.

The best large college towns are Austin, Tampa, Miami, Raleigh, N.C. and Atlanta. The best mid-size college towns are Orlando, Gainesville, Fla., Scottsdale, Ariz., Irvine, Calif. and Salt Lake City, Utah. Best small college towns are Ann Arbor, Mich., Rexburg, Indiana, Provo, Utah, Princeton, N.J. and Orem, Utah. Charlottesville is no. 7 for small college towns.

The lowest cost of a two-bedroom apartment rental is in Richmond, Kentucky with $783 per month, which is 4.2 times lower than in Santa Cruz, Calif., which has the highest at $3,293 per month.

The lowest cost of higher education is $17,414 per year in Savannah, Ga., which is 4.7 times lower than the highest in Evanston, Ill. at $81,283 per year.

Michael T. Miller is a professor at the University of Arkansas, and he said the community that houses a college “can be incredibly important to a student depending upon a variety of factors. A community has outstanding hospitals or businesses to intern in, or, it might be the location of a state capitol. These kinds of resources can really improve a student’s experience, both in terms of applied learning, but also in terms of future job placement. If a student wants to work in the healthcare sector, for example, a city that has a reputation as a healthcare destination is obviously going to present more opportunities than other areas. A city or town can also be important when considering the type of experience, a student is looking for and what the student’s personality and outlook are like. For some, a particular religious presence is important. Not every college town has a synagogue, for example. And some students, especially in our Covid-world, think about crowds, population density, etc. There are just simply some students who are looking for an urban landscape and others who want some distance between themselves. So having a sense of what your preferences are and what you need can really play a factor in deciding on a college to attend.”

Dr. Vicki L. Baker, a professor and co-chair of Economics and Management Department at Albion College, said several factors about the city/town a college is in should be on a student’s radar.

“If you are an out-of-state student, for example, how accessible is transportation (bus, train, plane) or do you need to travel quite far which can be costly? For some, diversity in terms of the residential population and/or food options is important and worth consideration. Safety/crime statistics are certainly also worth researching,” Baker said.

Are college cities/towns a good option for retirees? What about families?

“In general, ‘college towns’ as they are called are attractive places to live for retirees and families,” Dr. George Kuh, professor emeritus at Indiana University, said in a press release. “Most offer a wide variety of affordable cultural, social, and entertainment options. Retirees can seek out university offerings that promise intellectual stimulation and personal development opportunities. For families, public elementary and secondary schools in college towns tend to be of good quality. Depending on the nature of the local economy, however, real estate and housing costs may be higher compared with other cities of comparable size. Because college towns tend to be viewed by college graduates as desirable places to live, the average level of educational attainment is generally high which translates into safer communities and a stable economic base due both to the institution (which is often one of the major employers in the area) and a better-educated citizenry and workforce.”

Dr. Kelly McFaden, professor, SFE and Department Head of Social Foundations & Leadership at University of North Georgia, said college towns in rural areas become hubs for culture, community and commerce.

“Ideally, colleges and universities have reciprocal beneficial relationships that advance the needs of both the institution and the wider population. So yes, college towns can be great options for retirees or families with children. The only caveat would be not to move to a college town and then complain endlessly about the inconvenience of a student population. They bring a significant if transitory, infusion into the local economy and that can come with some downsides, like traffic on football game days,” McFaden said in the press release.

McFaden also weighed in on the advantages and disadvantages of going to college in-state versus out-of-state.

“The number one advantage of staying in-state is money. Unless an out-of-state school offers scholarships or other opportunities to reduce the tuition to close to the in-state rate, you’re going to be paying two and three times what in-state students are paying for the same education. Conversely, the advantage of going out of state is the opportunity to live somewhere new, engage in a new community, and meet different kinds of people. Deciding where to attend is a complex decision and while money isn’t the only issue to consider, it’s certainly an important one,” McFaden said.

Becket C. Duncan is a Ph.D. Candidate in the Department of Higher Education at University of Denver, and said one of the greatest advantages of in-state is in-state tuition.

“Historically, costs at public colleges are more affordable for in-state students than out-of-state students. Affordability matters and is the most important factor for many families. Attending college in-state also keeps resources and capital in the state. For colleges that are seeing their funding from the state and federal government dwindle, recruiting and retaining students in the state will go a long way with lawmakers and politicians. Students can invest in the region by staying after graduation and working in their university’s city. College cities are great places for families. In-state universities are great options for students with families who need to be close to or work near their families. Hundreds of thousands of students seek education at broad-access institutions. These institutions, with high acceptance rates and lower tuition, are vital to the families and communities who live near them. For some students, the best employment opportunities are at colleges and universities outside of their residential state. Colleges that have majors closely linked with employment sectors in outside states provide additional opportunities for students to gain an internship or full-time employment,” Duncan said.