This Underrated South Dakota City Is One Of The Cheapest College Towns In The US

College costs continue to surge nationwide, leaving many under real pressure to make the math work. The Education Data Initiative reported that student loan debt in America hit $1.814 trillion in Q2 2025. The average borrower now carries $39,075 in federal student loan debt, and that jumps to $42,673 when you add private loans. Housing costs are climbing, too. The U.S Department of Housing and Urban Development's quarterly report found the median national rent reached $1,847 per month in Q4 2024. That's a 9.3% jump in just three years. It puts many households on track for decades of debt.

That's where Brookings, South Dakota, stands out. WalletHub named it the second most affordable college town in the country out of 415 U.S. cities. With Brookings ranking second nationally for affordability, students, retirees, and local families naturally see consistently lower everyday expenses. South Dakota is also among the cheapest states to retire in. The town hosts South Dakota State University, which brings a steady economic footing. South Dakota's six public universities, including SDSU, pump $2.1 billion into the state's economy and support 12,354 jobs, according to the South Dakota Board of Regents' 2021 Economic Impact Report. Brookings isn't just cheap, though. It has some unique spots like the state's only children's museum and the official Agricultural Heritage Museum.

Brookings does well on everyday expenses. RentCafe reported the average rent for an apartment in Brookings was $1,163 in August 2025. A comparable unit in Boulder, Colorado, routinely costs over $2,519. Housing isn't the only area where you save. FindEnergy says Brookings residents also spend less on utilities, with Brookings County's average electricity rate at 12.77 ¢/kWh for November 2024. That rate sits about 27% below the national average of 17.47 ¢/kWh for June 2025. Monthly bills become another place where students and families save.

Groceries eat up a big chunk of college town budgets nationwide. The average American spends around $504 per month. Any gap below that matters for students on tight budgets. Salary.com's data showed food expenses in Brookings at $354 per month for an individual, which is 29.8% below the national average of $504 per month. South Dakota doesn't have a personal income tax, according to the South Dakota Department of Revenue (DOR). This means more take-home pay going straight to residents and college students. Retirees benefit too, since Social Security income stays exempt from state taxes.

Brookings mixes outdoor activities with campus energy. College students and retirees both get plenty to do year-round. Mornings might mean fishing, kayaking, biking, or snowshoeing in the 135-acre Dakota Nature Park. Trails there loop past ponds and grassy meadows. Equipment rentals cost just $7 per hour. Meanwhile, the Larson Nature Center runs hands-on programs focused on local wildlife and ecology. Golfers head to Edgebrook Golf Course, which is an 18-hole public facility with daily rates from $22. Organized evening leagues draw beginners and longtime regulars alike across generations.

Summer brings students and retirees together at Hillcrest Aquatic Center, where a discount card offers admission for $63 for ten daily admissions (just $6.30 each), and a season pass is also available at $70 per individual. It's just one example of how residents here save money while enjoying a quality of life and a full local calendar.

The Brookings Farmers Market buzzes every Saturday from May through October and on first Saturdays and third Thursdays from November through April. All ages show up for local produce, ready-to-eat meals, and live music. Then in June, there's the Brookings Kite Festival at Fishback Soccer Complex. Undergraduates and older adults mingle, share the lawn, fly handcrafted kites, and join free workshops on making their own. It's become a free, shared tradition for the whole community.