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College Town vs.
City School: Which One Is Right for You?

We asked experts to share the financial pros and cons of both academic experiences.
Choosing whether to go to school in a big city or college town determines more than whether you’ll spend your Saturdays relaxing on a grassy quad or seated in a fancy theater. Location is one of the most important factors that influences the total cost of your college education.

According to College Board, the average tuition and fees for full-time undergrads in 2024-25 are $11,610 at public four-year in-state schools ($400 more than in 2023-24) and $30,780 at public out-of-state schools ($940 higher than the previous year).

Given the rising costs, it’s more important than ever to carefully think through what makes the most sense for you and your family. Here these experts share some financial pros and cons of college towns compared to city schools.

College Towns

Pro: Affordable housing

According to a recent College Ave survey of 1,060 college students, rent averages around $1,384.98 per month. Your school’s location will definitely impact that number. According to Apartments.com, for example, the average rent in State College, Pennsylvania., where Penn State is located, is $1,109 per month for a studio. In Boston, a studio near Emerson College averages $2,918 per month.

Cost of living can “definitely be an advantage” to a college town, says Kathy Adams Riester, associate vice chancellor for student life and dean of students at Indiana University Bloomington. “I think students should investigate that: Not just what on-campus living costs look like, but also off-campus costs.”
Feeling stressed? The good news is that private student loans from companies like College Ave can be used to cover living expenses such as rent and housing and fees.

Con: You might need a car

Public transportation can be limited in small towns and, to an even greater degree, rural areas. Having access to a car often makes getting around much more doable. As Riester points out, students at Indiana often need to travel from Bloomington to Indianapolis for mental-health care and other appointments.

Of course, if you do bring a car to school, you’ll be in for extra costs, including a parking fee, gas and general maintenance. For example at Dartmouth College in Hanover, New Hampshire undergrad student parking permits cost $93.18 per 10-week term.

Con: Travel can be pricier

Students who want to regularly visit family should think through the costs and logistics associated with those trips, Riester says. Getting to a major airport from Bloomington, for example, can be challenging: “It’s about 50 minutes to our closest airport in Indianapolis," she says. Students often end up splurging on an Uber – or paying to park their car at the airport.

Pro: A strong alumni network

Life in a college town will feel like it revolves around the school – because in a lot of ways, it does. “You have a tighter, more involved community, and that sense of school spirit permeates through most everything,” Riester says.

That means you’ll have a large, involved network all around the country (and world) to tap into for future career-related opportunities. A University of North Carolina Tar Heel, for instance, will likely be thrilled to help a younger student out, simply because they wear the same school colors. That can lead to valuable connections – which is why, as Riester says, you can't put a price tag on pride.

Con: Limited shopping

“Depending on the size of the community, there may or may not be as much variety as you’re used to, for everything from shopping to grocery stores,” Riester says. So Trader Joe’s fanatics may have to settle for a Giant Eagle, which could mean different prices than back home. Likewise, if you need new clothes and there’s only one boutique in town, you may spend more than you would if there were dozens of nearby options.
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College Towns

Pro: You can walk everywhere

People in urban environments like to rave about how walkable their city is. “We New Yorkers will walk everywhere,” says Tava Bingham, executive director of the NYU Center for Student Life. “You’re able to sightsee in your own city.” Plus: Walking is free!

Even if you’d rather not pound the pavement, there are typically lots of convenient – and affordable – options for public transport at urban schools. According to Great Value Colleges’ U.S. College Towns with the Best Public Transportation, Northeastern University students can snag 11% off Boston transportation passes, while those at the University of Miami get 50% off passes for a range of bus systems.
Another cost-saving benefit: In most cities you’re close to at least one major transportation hub. “The nice thing about being in New York City is that we have three major airports near us,” Bingham says. That means you'll be able to cherry pick what works best for your schedule and budget – and won’t have to travel far to catch a train or plane.

Pro Tip

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Con: Higher cost of living

Cities tend to be more expensive. That applies to housing, restaurant meals, hotels when your family comes to visit, plus goods and services (like gym classes or even getting a haircut). “It’s absolutely something to take into consideration,” Bingham says, and may mean you need to apply for a private student loan, like the ones offered by College Ave, to cover expenses like groceries or meal plans.

Pro: Lots of job and internship opportunities

You’ll likely have access to more career development opportunities. “You have the entire city as your classroom, whether it’s internships or job experiences or experiential learning,” Bingham says. “It’s all here, either walkable or a quick train ride away.”

That means it might be easier to stay close by for summer internships, so you don’t have to front the costs associated with moving or a storage unit. Those savings could add up. Plus, working or interning year-round could open up doors that (literally) pay off down the road.

Pro: Discounted cultural activities

Students at city schools like NYU enjoy built-in access to world-class cultural activities. Think that sounds like it requires a fat wallet? Not necessarily. “One of the great things about being a student is that you're able to get access to so many experiences either for free or significantly discounted,” Bingham says. NYU has an on-campus program called Museum Gateways, for example, which provides students with free tickets to places like MoMA: The Museum of Modern Art.

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Which is Right for You?

If you’re just starting to weigh the pros and cons associated with college towns vs. city schools, make a list of priorities. What do you consider essential to your college experience? “Academically is most important,” Riester says, but what you want to do outside of the classroom matters, too. “Then match it to, do you find those things more in a college town, or do you find them in a city?”

Prioritize in-person campus visits, too. While most schools offer virtual tours, they don’t compare to actually exploring your potential future stomping grounds. “You want to know, do I see this being my home for the next four years?” Bingham says. “For many students, that can only be possible if you're able to see it and visit it.” If that’s not in the cards, reach out to the school’s admissions team, she suggests: NYU, for example, will connect applicants with students to answer questions about campus life.
And remember, if the costs associated with your dream school feel overwhelming, a variety of financial-aid options exist. College Ave’s private loans cover up to 100% of the cost of attendance – so make it a point to investigate all your options before settling for your back-up plan.

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