![]() ![]() With a 529 college savings plan, investments grow tax-deferred and are not taxed when withdrawn to pay for qualified higher education expenses, including tuition, fees, textbooks, supplies and equipment required for enrollment, special needs services and, in some cases, room and board costs. Parents can save for future room and board costs with a tax-advantaged 529 plan. If costs continue to rise at an annual rate of 3%, total room and board over four years at public and private colleges may cost $84,000 and $96,000, respectively. How Much Room and Board Can CostĪccording to the College Board, average room and board costs for the 2022-23 school year were around $12,310 for public 4-year colleges (in-state or out-of-state) and $14,030 for private 4-year colleges, up about 3% from the previous year. Some colleges have a fourth category that includes students who live on a military base or who receive the basic allowance for housing (BAH), which includes room and covers board only. We cover how to use your plan to pay for room and board below. Room and board include the cost of housing and the cost of a meal plan.Ĭolleges typically have room and board budgets for students who live on campus in college-owned or operated housing, for students who pay rent to live off-campus in an apartment, and for students who live off campus with their parents or other relatives. You can use a 529 plan to pay for room and board, but only if certain requirements are met. Room and board costs make up a large portion of a student’s total college bill, second only to tuition. ![]()
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