With college expenses hitting historic highs, many students are opting to stay home rather than move into dorms or off-campus housing. A recent survey by Forbes Advisor found that 42% of 1,000 college students plan to live at home this semester, surpassing those who will live on campus (33%) or in off-campus apartments (23%).
As the reality of student loan debt sets in, students are recognizing the financial burden that comes with attending college. Living at home offers a way to save money, particularly as the average cost of attendance at public state colleges has climbed to $27,000—$17,000 more than tuition and fees alone.
“Traditionally, living away from home is an important step toward adulthood,” notes an expert. “But in today’s economy, many families simply can’t bear those costs.”
Graduates from the class of 2022 are facing an average debt of $29,400, and many are anxious about job prospects post-graduation. In the surveyed group, 80% expressed concerns about finding employment after college.
Costs associated with dorms can even rival tuition fees, making it clear why living at home can significantly reduce economic strain. President Biden has initiated various debt relief plans for federal student loan borrowers, though many have faced legal challenges. His SAVE plan, which aims to adjust loan payments based on income and repayment time, is currently held up in court, leaving many borrowers with paused payments.
Biden’s debt relief initiatives have already forgiven approximately $167 billion for around 5 million borrowers, making it clearer how crucial the financial landscape has become for college students contemplating their living arrangements.