Key Takeaways:
- Families should start discussing ways to pay for college early.
- A net price calculator can be found on colleges' websites.
- Students need to provide information such as parental income and assets.
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The cost of college can be jarring for families. In fact, only 44% of parents felt prepared to pay their child's first tuition bill, according to a March 2024 College Ave survey.
To reduce the shock, families should have conversations early about their plans to pay for college and use the net price calculators provided by colleges of interest, experts say.
Net price calculators "can help students kind of understand the cost of attendance might not be the net cost that the family actually pays out of pocket," says Sarah Everitt, dean of student financial services at Gonzaga University in Washington. "It's a good tool for helping families understand what type of state or federal financial aid might be available to them. ... It can help families discern what schools might be out of reach financially or manage expectations for what might actually come in that financial aid offer."
Here's what students should know about using a college's net price calculator.
What Is a College's Net Price Calculator?
A net price calculator is an online tool that evaluates a family's current financial situation and their ability to pay for college. It provides an estimate of what a family might be expected to pay at a particular institution.
Compared to the Free Application for Federal Student Aid, or FAFSA, and other aid applications, a net price calculator is designed to be brief and "less cumbersome," Everitt says.
Every college's net price calculator is different. For instance, some colleges' net price calculators, like the University of Richmond in Virginia, do not take merit aid into account.
"That could be additional aid that the student ends up being eligible for once they actually apply here at the university," says Jaclyn Coates, the school's financial aid systems manager. All first-year applicants are considered for merit aid, according to the university's website.
How to Use a Net Price Calculator
To fill out the application, which can be found on most colleges' websites, students need to provide information on their dependency status, household number, parent income and assets, and their own finances. Demographic data is not collected, but the form may ask for academic information such as GPA or test scores.
Once the information is submitted, the net price calculator gives an estimate of a family's out-of-pocket cost, which is the difference between the cost of attendance and potential amount of grant and scholarship money a student may receive.
Coates says that while a net price calculator works well for wage earners, it can be more complicated for those who own businesses or have foreign income. "If it gets trickier, then I would suggest reaching directly out to somebody in the financial aid department."
Why Use a Net Price Calculator?
A net price calculator can "eliminate some of the surprise or shock of how expensive college can be," Coates says.
But the output of a net price calculator is only as good as the information provided, she says. "Be patient. Answer the questions as accurately as possible so that the output you receive is going to be a solid estimate."
It's also important to remember that a net price calculator is based on historical data, Everitt says.
"A school's financial aid strategy may change from year to year, and that may not be represented as timely in the net price calculator," she says. "Or costs may change from year to year. Schools in theory are keeping up on this information, but that's not necessarily the case."
Coates advises students to check to see when the net price calculator was last updated and whether it reflects the school's current cost of attendance and financial aid policies.
Comparing Schools Using a Net Price Calculator
A net price calculator can be used as a comparison tool. As high school students get an idea of the cost differences between public and private colleges, this tool is a good way to set expectations, Coates says.
However, if there is a specific school that a student is interested in, Everitt says, a discouraging estimate from the net price calculator should not be the only reason to rule it out.
"I would encourage them to go through the entire application and financial aid process because that's really the best way to know the net price," she says.
Trying to fund your education? Get tips and more in the U.S. News Paying for College center.
