Can we afford it?
That question has to be high on the list for a high school student creating a list of colleges she’d like to attend, and the Net Price Calculator can help in answering that question during the early stages of the college search.
What is a Net Price Calculator?
Net price calculators are available on a college’s or university’s website and allow prospective students to enter information about themselves to find out what students like them paid to attend the institution in the previous year, after taking grants and scholarship aid into account.
While it’s fine to stretch aspirations in considering a dream college that may be a financial reach, it’s important to be realistic in understanding practical budget limitations.
Let’s consider the hypothetical case of a New York high school senior, where an NPC calculation can show meaningful cost differences among various colleges. Here are three possible college choices:
- Harvard University: It’s a reach for almost everyone because chances for admission at this Ivy League school are small at only 6%.
- Syracuse University: A private university with a 50% acceptance rate that is attainable for many students.
- Binghamton University: One of the top New York state universities, it comes with a 43% acceptance rate.
Here are simplified NPC scenarios showing Net Cost of Attendance (COA) based on earned income levels of $50,000 (low income), $80,000 (medium income), and $150,00 (high income).
Useful information, right? This chart illustrates the oft-repeated advice that in some instances a private college may be as affordable as a state school.
Important points about this hypothetical NPC illustration:
At what income level does a family’s chance of aid become zero?
At an income level of $250,000, the net price of attendance in all these scenarios equals the gross price. In other words, somewhere between an income of $150,000 and $250,000 is the point where a family would not qualify for any need-based financial aid.
The advice? Run a NPC early on in the process to get a general idea about a college’s affordability.