Don't be cheap, fool. Printer paper and hb pencils are fine for learning perspective, cranking out gestures, or basic form drawings. But if you don't do the things that require big paper, like lifedrawing, still lifes, you're handicapping yourself once you're at intermediate level.
Secondly, use dickblick. Already found newsprint 100 sheets for 3 dollars http://www.dickblick.com/products/canson-biggie-recycled-newsprint/ at your size. But you'll want to go to at least 14x17 anyways because that's what newsprint is good for, it's cheap so you don't get ripped off for using big sheets.
You should learn to appreciate the different thicknesses of pencils. Different texture and ease of adding value all have to do with the paper/pencils you use.
>but if you're just drilling fundamentals
you won't be drilling fundamentals forever. For example, lifedrawing is not just drilling fundamentals. It's gaining experience in drawing as well as studying the human form.
>why would someone spend a shit ton of money on art school
because the amount of time it takes to learn to create art is substantial. With college being such a norm in society, might as well go to an institution that supports one's goals, rather than getting a degree in something one doesn't even care for.
>why art students suffer high unemployment
a majority of art students are fuckheads and choose their majors arbitrarily like everybody else. It's just that in the art field with no direction you will not find a job, while in other careers it's a lot more obvious; get a degree in accounting, be an accountant. get a degree in math, be a mathematician. get a degree in art, be an….artist? What does that mean?
Granted even people with direction will fail, for whatever reason. Trying to do it all by yourself is a terrible idea. Ateliers/education are incredibly useful.