Depending on how you're paying for college, you might see staying off campus as a way of saving money. The rationale is that living in the university’s residence halls is extremely expensive. You pay a lot for the experience of living on campus, even if you don’t get nearly as much room as you would in your own apartment.

But do you actually save money? There are, of course, associated costs. If you live in an off-campus apartment you might consider getting renters insurance. It will cover your possessions if they get destroyed or stolen. However, it is fairly cheap and it won’t bust your budget.

Let’s take a look at some of the other expenses associated with living off campus to get an idea of whether you're saving.

Groceries and Eating Out

When you are living off campus, you have to take care of your own meals. This means either making food or getting food from a restaurant. As a single person you may not think this will cost you all that much. However, groceries can cost you hundreds of dollars every month and prices have been going up.

Furthermore, no matter how well-intentioned you are about it, chances are that you’re going to opt to order from a restaurant or fast food place fairly often. You end up spending on groceries that you don’t use, in addition to the cash you spend on readymade meals.

Part of what you're paying for by staying on campus is the meals. You also save time that you would otherwise spend cooking dinner.

Entertainment

Entertainment is not necessarily free on campus. However, there are regularly free events. Students staying on campus also don’t need to think about entertainment all that much. They're staying around other students of a similar age. This helps them avoid isolation and have fun in their spare time.

When you're staying off campus, you need to take care of your own entertainment. This may just mean going to a nearby bar, but it will have you regularly spending money.

Even when you take these extra expenses into account, staying in an apartment off campus may still be cheaper than staying on campus. But your decision may come down to how exactly you're paying for college.

Paying to Stay On Campus

If your parents are paying for you to go to college from a savings fund or if you are there on a scholarship, the calculations are a lot less complicated. You can look at how much you've been quoted in comparison to how much an average apartment in the area would cost. You can estimate the cost of food and entertainment.

However, if you're using student loans to get through college, it gets a bit trickier. This is because you will likely use student loans to pay for your residence on campus. That means you can avoid the cost now, but when you do eventually pay for it, you will pay a lot more.

As your student loans accrue compound interest over time, the amount you spend for the privilege increases day after day. The bigger the loan you start off with, the more your loan is going to cost you. Staying on campus can be a big contributor to that initial amount.

While staying in an apartment off campus may theoretically end up costing around the same, it will cost less in the long run. You won’t pay interest on either the rent or the food.

Of course, if you cannot afford to pay rent without a student loan, that argument becomes moot.

Staying on campus can be great, but it is expensive. If you're considering staying in an apartment off campus, however, you should do the math to compare what it will really cost you.