You wouldn’t buy a car without knowing how much it costs. You wouldn’t buy a house without knowing how much it costs. Yet many families commit to colleges, which can cost way more than a car and sometimes as much as a house, without knowing how much it will truly cost.
Tuition costs can vary greatly depending on the type of school you attend, whether it be an in-state public university, out-of-state public university or private school. Because of the wide range that tuition can vary across schools for the same degree, it's important to what that range is before putting a school on your list. In the same way you wouldn't consider buying a Lamborghini knowing you can only afford a Kia, students and families really shouldn’t be toying with the idea of applying to a school you really can’t afford. It puts an unnecessary financial strain on the family if you happen get accepted and now feel pressure to attend.
Instead, it’s best to look at all aspects of a school before applying – programs offered, location, culture and affordability; most importantly affordability because if you can’t pay for it, all those other considerations don’t really matter that much.
Cost transparency is important, so much so, that in 2008 the Obama Administration passed as part of the HEOA (Higher Education Opportunity Act), a requirement that colleges and universities who participate in federal student aid programs and enroll full-time, degree or certificate seeking undergraduate students, provide what they call a net-price calculator – a tool to help students understand more realistically how much tuition will cost for them individually.
What is Net Price
Just like a car, tuition has a sticker price, but that’s not necessarily what a student will pay. Many times, schools will discount the cost to attend to attract students they want to attend. This discounting comes by way of merit-based scholarships (money given to reward academic or other achievement). In addition to the discount, based on the information provided, schools can assess if you are also eligible for any need-based aid which can further reduce the cost to attend. So, after all grants, scholarships and other aid is applied, the cost remaining is more likely to be the actual cost to attend – the net price.
Where to Find the Net Price Calculator for Your School
Probably the easiest and most efficient way to find the net price calculator for any school you are considering is to do a web search for net price calculator and the name of the school. Typically, the first result is exactly what you need. Otherwise, they can be found on each school’s website that participates federal aid programs as mandated by law. Some may be with admissions information, others with financial aid. Most schools also offer a search function on their websites, where it can found by searching for net price calculator.
Preparing for Funding Gaps in Advance
The purpose of the net price calculators is to alert you anticipated actual costs to allow you to understand if you will experience any potential funding gaps. If you are considering a school(s) which will cost more than your budget allows, you can plan ahead and work to cover any gaps in advance to minimize the need to borrow money if possible.
Use a funding cap calculator, like the one on Edvisors.com, which you can start and save as you work towards covering your college costs. In it, you can add discounted figures estimated in the school’s net-price calculator under scholarships, any federal financial aid you have received or expect to receive, your college savings account, etc. to best understand how much you need to raise to pay for school starts.
Scholarships can be very meaningful to reducing college costs. Tools like this Scholarship Finder can help you locate and apply for additional money to help bridge your financial gap. By mapping out your net cost and pairing that with any other resources you have to cover costs in the gap calculator, you can better manage any shortfalls and be more prepared when that first tuition bill comes due.
