Denis Doulgeropoulos
Your Financial Professional & Insurance Agent
Net Price Calculators Help Gauge College Affordability
Fall is the time when many high school seniors narrow their college lists and start applying to colleges. One question that is often front and center on the minds of families is “how much will it cost?” To help answer that question, you can use a net price calculator, which is available on every college website.
How a Net Price Calculator Works
A net price calculator helps families estimate a college’s true cost. Furthermore, it calculates expected grant aid based on a student’s financial details and academic profile. Consequently, the college’s sticker price minus estimated grants equals the student’s net price, or out-of-pocket cost.
Although colleges do not guarantee the results, the estimates usually remain close to reality. Therefore, by completing calculators for several colleges before applying, students can compare likely costs and rank schools based on affordability.
Information Required by a Net Price Calculator
A net price calculator typically requests parent income and assets, student income and assets, academic performance, and family size. Moreover, some calculators ask for detailed inputs such as class rank, test scores, retirement contributions, home equity, or anticipated health-care expenses.
Because each college designs its own calculator, the questions may vary slightly. Nevertheless, completing a calculator usually takes only 10 to 15 minutes. Additionally, searching “net price calculator” on a college’s website will direct you to the correct tool.
Why Results Can Vary
Colleges use different tuition rates and grant aid formulas. As a result, calculator results often vary even when families enter identical financial information. For example, one school may estimate a net price of $25,000 per year, while another may estimate $40,000.
Therefore, running calculators for colleges with similar selectivity and sticker prices allows families to compare generosity within a comparable peer group.
Consider Filing the FAFSA
The Free Application for Federal Student Aid (FAFSA) for the 2022–2023 academic year opened on October 1, 2021. Consequently, families should consider filing it even if they do not expect to qualify for federal need-based aid.
Additionally, many colleges require the FAFSA to award institutional need-based or merit-based grants and scholarships. Therefore, submitting the FAFSA can expand financial aid opportunities.
This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek guidance from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2021 Broadridge Financial Solutions, Inc.