Graduate Student Cost of Living
2004-2005 Stipend Levels
- Sci/Eng PhD RA: $1,980/month or $23,760/year
- Eng MS RA: $1,810/month or $21,720/year
- Sci/Eng TA (contact): $2,030/month or $24,360/year
- Sci/Eng TA (support): $1,830/month or $21,960/year
- According to Alice Gast, VP of Research in the Office of the Provost, Departments in other Schools (other than Science and Engineering) will be expected to establish stipends consistent with these guidelines, subject to the approval of their School Dean. Many of the students in non-Science and Engineering Departments are supported by smaller fellowships or are not supported at all
- Stipend Rate History since FY1999
2004-2005 Expenses with Health Insurance Subsidy
- assuming flat health insurance rates (announcement of 2004-2005 rates is forthcoming) - unsupported students add $1,500
- assuming tax burden of $4,040, or 17% of Sci/Eng PhD RA income - may vary significantly for different income levels
- calculated expenses are the BARE MINIMUM that students need to stay housed, fed, keep up in classes, and get around - these figures have no padding, and do not account for clothes, entertainment expenses, computer equipment, or incidentals
- Single On-Campus Expenses: $19,546
- Single Off-Campus Expenses: $23,378
- Married On-Campus Expenses: $32,779
- Married On-Campus Expenses: $36,936
- Children add a variable amount to expenses, on the order of tens of thousands of dollars.
Other Resources:
- 2004-2005 Practical Planning Guide
- 2003-2004 Practical Planning Guide
- more to come...
- The Student Financial Services Office estimates the average Cost of Attendance (COA) at MIT to be $51,120, of which tuition accounts for $29,400 (varies extensively across the Sloan Programs). The remainder breaks down as:
- Books and Supplies: $1500
- Food: $3900
- Medical Insurance: $1440 (higher if you enroll a spouse/partner and/or children)
- Personal: $2500
- Housing: $9980
- Transportation: $2200
- Fees (Student Life Fee): $200
The GSC has compiled information on all of the major cost factors that have been determined to contribute in any significant way to the total cost of living for an average single MIT graduate student. The expected magnitude of these costs for 2005-2006 has been determined using the most accurate information currently available, as described in detail below.
It is the GSC's belief that the stipend levels should be set in accordance with the goal of providing research and teaching assistants with enough income to support their expected cost of living. Though the Institute has made great positive strides in recent years, particularly with the subsidy for health insurance that was instituted in 2004-2005, we have not yet reached this goal.
The information provided examines the cost of living for the average single student, and compares the costs for those single students who live on-campus to those who live off-campus. The cost of living for students who have a spouse or partner, or students with children, have been evaluated as well, but will be presented separately.
| Cost of Living Information | |||
| Expense | Single Graduate Students | ||
| On-campus | Off-campus | Average | |
| Housing + Utilities | $9,348 | $11,880 | $10,681 |
| Food | $5,233 | $5,233 | $5,233 |
| Health Insurance | $0 | $0 | $0 |
| Dental Costs | $175 | $175 | $175 |
| Transportation | $1,553 | $1,934 | $1,754 |
| Taxes | $2,868 | $2,868 | $2,868 |
| Books & Supplies | $1,548 | $1,548 | $1,548 |
| Student Life Fee | $200 | $200 | $200 |
| Total | $20,925 | $23,838 | $22,459 |
Costs that aren't included
(require disposable income):
- clothes
- personal care (soap, haircuts, etc.)
- non-food groceries
- entertainment
- leisure & unfunded conference travel
Where Do These Numbers Come From?
For some of the cost calculations presented here, it was possible to obtain exact values; many other costs do not have exact figures associated with them, and must be estimated on the best information available. For example, while it is possible to get an exact figure on the cost of on-campus housing, it is not possible to get an exact number for the amount that MIT graduate students will be paying next year for off-campus housing. Wherever it was necessary to estimate actual costs, many potential sources of information were evaluated and the most reliable of these sources was utilized.
One source of information that has provided much of the data upon which these calculations are based is the Graduate Student Life Survey, conducted by the Graduate Student Council and the Office of the Dean for Student Life during October, 2002. This survey was filled out by a statistically relevant sample set of 44% of the MIT graduate student population, and provides the most accurate information available regarding the true costs incurred by MIT graduate students at the time for a variety of expenses. In cases where this data is available, it has been determined to be the preferred source of information over other sources such as the Practical Planning Guide or MIT Student Financial Services, both of which estimate costs based on educated guesses rather than statistics.
As the data from the Graduate Student Life Survey was obtained in 2002, it is necessary to account for increases in costs for the upcoming academic year (2005-2006). We have chosen to estimate the cost for an item in November, 2005 given how much it cost in November, 2002, by utilizing the U.S. Department of Labor's Consumer Price Index (CPI). Specifically, we consider the CPI for the "Boston-Brockton-Nashua MA-NH-ME-CT" area (the exact label used by the Dept. of Labor). The CPI gives a good estimate of the price change from 11/2002 to 11/2004. We generally assume that the price change from 11/2004 to 11/2005 will be equivalent to the price change from 11/2003 to 11/2004. Note here that we are considering the cost of an item at a particular month, since that is how the CPI is indexed. It may be more natural to discuss the cost in terms of which academic year is being examined. In that case, note that 11/2002 is a price marker for the 2002-2003 academic year, and similarly the upcoming 2005-2006 academic year is described by the CPI value for 11/2005. CPI values may be obtained from the US Department of Labor's Bureau of Labor Statistics/Consumer Price Index website.
Details on Each Item
Rents and Utilities: On-campus
The most recent projection for on campus rents for 2005-2006, obtained from the MIT Housing Office, is a 5.5% increase in rents across the board, yielding an average rent of $739 per month.
In addition to rent, on campus students are assumed to pay for either cellular or long distance phone services amounting to $35 per month as well has a house tax (which exists in most, but not all, of the residences) of $5 per month. The cost for phone services was obtained from MIT Information Services & Technology as the cheapest cellular plan available to MIT students through MIT's contract with Verizon Wireless ($35 assumes approximately $5 in taxes and fees). The costs of phone service and house tax is assumed to remain constant from 11/2004 to 11/2005.
TOTAL: $9,348 for 2005-06 ($8,880 for 2004-05)
Rents and Utilities: Off-campus
The Graduate Student Life Survey showed that off-campus single students were paying, on average, $852 per month for rent and utilities combined in November, 2002. We assume that of this total, $70 was being spent on utilities and $782 was being spent on rent. Because no statistical information is available regarding how much students were spending on utilities alone, we obtained the $70 figure through an informal polling of students who went through their bills from 2002 and averaged out their utilities costs over the 2002 calendar year, choosing the low-end estimate.
The CPI for "Rent of primary residence" in the Boston-Brockton-Nashua area increased from 241.8 to 253.2 between 11/2002 and 11/2004. This corresponds to a 4.7% increase in rents. In order to estimate the expected change in off-campus rents for the time frame of 11/2004 to 11/2005, we consulted Grubb & Ellis Co., the U.S. Department of Housing and Urban Development, and the Harvard Off-campus Housing Office, all three of which anticipate the housing market to remain flat during that time frame. This yields an average rent of $819 per month.
| CPI Data for Rent in Boston | ||
| Date> | CPI value | % change from previous year |
|---|---|---|
| Nov. 2002 | 241.8 | -- |
| Nov. 2003 | 248.0 | 2.6% |
| Nov. 2004 | 253.2 | 2.1% |
| CPI Data for Fuels and Utilities in Boston | ||
| Date | CPI value | % change from previous year |
| Nov. 2002 | 138.2 | -- |
| Nov. 2003 | 155.9 | 12.8% |
| Nov. 2004 | 180.5 | 15.8% |
The CPI for "Fuels and utilities" in the Boston-Brockton-Nashua area increased from 138.2 to 180.5 between 11/2002 and 11/2004, which corresponds to a 30.6% overall increase in the cost of utilities in that time. We estimate that the increase from 11/2004 to 11/2005 will equal the increase from 11/2003 to 11/2004. Thus, the monthly cost of utilities for November, 2005 is estimated to be $70*1.306*1.158 = $106 (as compared to $91 per month in 11/2004).
Finally, students living off campus have to pay not only for telephone expenses, but also for internet access, which we consider to be essential for most MIT students to be able to work while at home. We estimate phone costs, once again, to be $35 per month and we estimate internet costs to be $30 per month. The cost of internet service assumes that the student uses a broadband connection (either Verizon DSL or Comcast cable modem) and shares the connection with one other individual. We assume the costs of phone and internet remains constant from 11/2004 to 11/2005.
TOTAL: $11,880 for 2005-06 ($11,700 for 2004-05)
Food
| CPI Data for Food in Boston | ||
| Date | CPI value | % change from previous year |
| Nov. 2002 | 185.9 | -- |
| Nov. 2003 | 191.3 | 2.9% |
| Nov. 2004 | 198.4 | 3.7% |
The Graduate Student Life Survey showed that the average single student was paying $394 on average for food in November, 2002. The housing locations of students did not seem to play any significant role in this expense.
The CPI for "Food and beverages" in the Boston-Brockton-Nashua area increased by 6.7% from 11/2002 to 11/2004. We estimate that the increase from 11/2004 to 11/2005 will equal the 3.7% increase from 11/2003 to 11/2004, yielding a monthly food expense of $436.
TOTAL: $5,233 for 2005-06 ($5,046 for 2004-05)
Health Insurance
| MIT Unsubsidized SEIP Rates | ||
| Type | 2004-2005 Rate | 2005-2006 Rate |
|---|---|---|
| Student | $1,440 | $1,440 |
| Student and Spouse/Partner | $3,000 | $2,800 |
| Student and Dependent | $2,000 | $1,800 |
| Student. Spouse/Partner, and Dependent(s) | $4,350 | $3,160 |
The MIT Controller's Office has confirmed that there will be no increase in the cost of health insurance for funded MIT graduate students over the next academic year - that is, it will remain fully subsidized for single, supported students. Rates for the various "family" plans will decrease, as shown in the accompanying table.
TOTAL: $0 for 2005-06 ($0 for 2004-05)
Dental Care
Dental care is the expense for which perhaps the least reliable data currently exists. The Graduate Student Life Survey did ask the question of "How much do you spend annually on dental expenses?", and the answers to this question did not show not show a smooth distribution, but instead a distribution with three main peaks at $0 (approximately 30% of respondents), $100 (15%) and $200 (15%). At the same time, however, over 75% of respondents indicated that they were interested in purchasing a dental insurance plan an, when presented with a dental plan that listed standard commonly found features, valued such a plan at a very different cost than what they were currently paying (that distribution was also not smooth, but with peak occurring most prominently at $100 (~28%), ~150 (~11%), $200 (~16%), and $300 or more (~14%).
What the survey indicated was that examining a mean value for dental care was not particularly informative, given the very peaky distribution, and that many students who were paying little or nothing for dental care were not doing so by choice, but instead because they could not find any feasible options for dental care (e.g., the same students who answered that they spent nothing on dental care also answered that they wanted dental insurance and were willing to pay $100 or more for it).
Since the survey was conducted, graduate students have been encouraged to purchase either walk-in care treatment or the Student Dental Plan from Boston University's School of Dental Medicine. The dental plan costs $175 per year, which would be the cheapest reliable estimate of yearly dental care expenses for MIT graduate students - except for the fact that the website for the Student Dental Plan indicates that "Because of popular demand, we are unable to accept new registrations until further notice."
Given that the B.U. dental plan is no longer available, we have no strong point of reference for how much students should be expected to pay for dental care. The Practical Planning Guide estimates yearly dental expenses at $300. In our cost calculations, we use a more conservative estimate of $175 (what the B.U. dental plan would cost, if it were available) as a lower bound on the yearly cost of proper dental care.
TOTAL: $175 for 2005-06 ($175 for 2004-05)
Transportation, Local: On-Campus
On-campus Students' Local Transportation The Graduate Student Life Survey showed that on-campus students were paying on average $70 per month on local transportation (not including airfare, etc.) as of November, 2002.| CPI Data for Transportation in Boston | ||
| Date | CPI value | % change from previous year |
|---|---|---|
| Nov. 2002 | 151.2 | -- |
| Nov. 2003 | 153.6 | 1.6% |
| Nov. 2004 | 164.4 | 7.0% |
The CPI for "Transportation" in the Boston-Brockton-Nashua area increased by 1.6% from 11/2002 to 11/2003 and by 7.0% from 11/2003 to 11/2004. A portion of the large 7.0% increase was due to a 25% increase in MBTA fares. Since we do not expect that this type of fare increase will occur again this year, we estimate that the increase from 11/2004 to 11/2005 will equal the average of the previous two years' increases, yielding a 4.3% increase during that time frame (rather than the full 7.0%). This results in a monthly local transportation expense of $79.
TOTAL: $953 for 2005-06 ($913 for 2004-05)
Transportation, Local: Off-Campus
The Graduate Student Life Survey showed that off-campus students were paying on average $98 per month on local transportation (not including airfare, etc.) as of November, 2002. Using the same CPI information and assumptions as were used for on-campus transportation expenses yields a monthly transportation expense of $111.
TOTAL: $1,334 for 2005-06 ($1,279 for 2004-05)
Transportation, Non-Local
In considering transportation costs, it is important to consider that nearly all MIT graduate students will travel to their parents' home or permanent residence during the year, and some basic assumptions regarding non-local transportation for this purpose should be included in the cost of living model. We assume a minimum of two domestic flights per year and estimate the total cost at $600. For international students this cost can be thought of as representing one international flight every year or year and a half. The assumption of two domestic flights per year is obtained from MIT Student Financial Services. We have no MIT-specific statistical data to estimate this cost, so we obtain the approximate cost from the U.S. Journal of Academics, which provides a range, for 2004, of $600 to $1,100 per year for travel expenses . We choose the lower bound of this range to provide as conservative of an estimate as possible. We assume that this cost will not change from 11/2004 to 11/2005.
TOTAL: $600 for 2005-06 ($600 for 2004-05)
Taxes
In order to calculate tax, we assume that the average student has no additional sources of income beyond their support from MIT, and that they pay both Federal and Massachusetts state taxes. We base the tax calculations off of a stipend level of $23,000. The relevant tax calculations are presented below.
| Federal Tax | Massachusetts Tax | ||
| (2004 US 1040 tax form) | (2004 MASSDOR Form-1 tax form) | ||
| stipend | $23,000 | stipend | $23,000 |
| standard deduction | ($4,850) | exemptions (1) | ($3,300) |
| exemptions (1) | ($3,100) | rent deduction | ($3,000) |
| adjusted income | $15,050 | adjusted income | $16,700 |
| tax on adjusted income | $1,904 | tax on adjusted income | $885 |
| tax/stipend (%) | 8.28% | tax/stipend (%) | 3.85% |
In order to calculate tax, we assume that the average student has no additional sources of income beyond their support from MIT, and that they pay both Federal and Massachusetts state taxes. We base the tax calculations off of a stipend level of $23,000. The relevant tax calculations are presented below. Adding together the state and federal taxes calculated in the table, we see that the effective tax rate is 12.1%.
TOTAL: 12.1% of income ($2,790 for $23k stipend)
Books and Supplies
The cost of books and supplies, which was not a part of the Graduate Student Life Survey, must be estimated using the Practical Planning Guide. The minimum expected cost of books and supplies, as listed in the Practical Planning Guide (PPG) from 2001 through 2005 is given in the table below. Next to it is a plot of the Consumer Price Index for college textbooks during that time.
| Practical Planning Guide | |
| Books & Supplies Cost | |
| Minimum Bound | |
| 2001 | $750 |
| 2002 | $750 |
| 2003 | $820 |
| 2004 | $920 |
| 2005 | $820 |
The CPI shows that there has been a steady increase in the cost of college textbooks (approximately 4% per year) from 12/2001 through 12/2004. Yet, the Practical Planning Guide reduced its estimate of books and supplies by 11% from its 2004 estimate to its 2005 estimate. Examination of CPI trends suggests that the PPG's assumptions are incorrect; therefore, we use the 2004 PPG, rather than the 2005 edition, as a reference for our estimate. The CPI increase in the cost of college textbooks from 11/2003 to 11/2004 was 3.0%, and we assume that the change from 11/2004 to 11/2005 will be the same. The expected cost of these books and supplies is therefore $920*1.03 = $948.
In addition to textbooks and related supplies considered in the PPG, we factor in $1,800 for a computer, distributed over 3 years ($600/year). MIT IS&T recommends a number of systems for students (through the Dell Premier academic purchase program available through MIT ECAT), the least expensive of which lists for $1,500. The $1,800 figure is determined by including shipping, tax, necessary software (Microsoft Office or equivalent), media, and the most basic peripherals over 3 years.
TOTAL: $1,548 for 2005-06 ($1,520 for 2004-05)
Student Life Fee
We have confirmed with a number of MIT offices that the Student Life Fee is expected to remain at the same level for the upcoming year.
TOTAL: $200 for 2005-06 ($200 for 2004-05)
