Much like the price of cars, the sticker price of a college is often not the amount an individual student actually pays. Net price calculators are designed to provide a family with an estimate of what a year at a specific college will actually cost that family. Each college that receives federal funds is required to post a net price calculator for applicants on its website.
The net price of a college represents the amount a family will actually have to pay after scholarships and grants (from federal, state and school sources) are subtracted from the total cost of attendance. Since this calculation disregards loans, the net price is the true price the family pays.
To use the net price calculator, you’ll need the parents’ and student’s latest tax returns and bank and investment statements. For schools offering merit awards, you’ll also need to know the student’s GPA and test scores. Most good calculators take about 10-15 minutes to complete but nearly half of all colleges use a minimal federal calculator that might not provide an accurate estimate. The more questions the calculator asks, the more accurate you can expect the results to be. It’s sometimes difficult to find the net price calculator on a college’s website, but if you Google the college name and net price calculator you should reach the site directly. A new website, www.collegeabacus.org, gathers calculators for numerous colleges on one site.
The net price calculator can help families to discover colleges that will be affordable for them. You can also use the calculators to determine the effect on merit awards of raising SAT or ACT scores or achieving a higher GPA, or to see how family assets might affect your financial aid package. Keep in mind, however, that the net price estimates are not guarantees and actual financial aid awards may differ.
