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Net Price Calculator

Net Price Calculator . Kara Pitts, Associate Dean New Student Financial Assistance Clarkson University. The Federal Net Price Calculator Mandate. The Higher Education Act Of 2008

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Net Price Calculator

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  1. Net Price Calculator Kara Pitts, Associate Dean New Student Financial Assistance Clarkson University

  2. The Federal Net Price Calculator Mandate The Higher Education Act Of 2008 Required all post-secondary institutions that receive federal student aid funds and enroll first time full time undergraduate students to post a Net Price Calculator on their Web sites by October 29, 2011.

  3. What is the Net Price? • Difference between a school’s COA(sum of direct and indirect costs) and need- and merit-based grant and scholarship (gift) aid. • Regulation does not allow inclusion of private grants and scholarships in the calculation.

  4. What is the Net Price Calculator? • Online tool for student’s to calculate an estimate of cost for them to attend a particular school. • Takes into consideration each student’s (and family’s) unique set of financial and academic circumstances and matches it with the school’s available financial aid.

  5. Federal Requirements To meet federal requirement of the HEOA, schools were required to choose from following options. • Install a template developed by US Department of Education • Build a net price calculator internally with staff and technology resources at the school • Partner with an NPC service provider

  6. What is the purpose of the NPC? • Ensure discloser of the difference between the “sticker” price and the actual net price a student might pay to attend a particular institution. • Designed to increase awareness of the actual cost of college attendance.

  7. What does this mean for Guidance Counselors? • Most GC have many responsibilities and face daunting student to counselor ratios. Time is an issue. • Most GC feel comfortable advising about preparing for college and finding a good fit but don’t always feel qualified to calculate ‘net price’ of one school versus another. • The NPC gives counselors a place to send students and families to get FA estimations for each school they are considering.

  8. Common Questions • Where can I find a school’s NPC? Answer: Common locations-FA, Admissions, and/or Homepage of college website. • How accurate are NPC’s? Answer: More questions, more accuracy. Delicate balance between simplicity and accuracy. • What if a student doesn’t have all needed information? Answer: Student should expect to answer questions about their (and parent’s) income as well as GPA, class rank, standardized tests, etc. in order to get an accurate estimate. • How long does it take? Answer: 10-20 minutes

  9. Federal Template Calculator versus school’s NPC Federal Template • Limited questions for determining accurate EFC. • Use 2 year old median FA data to calculate very rough estimate. • To be accurate, institution must award need-based aid strictly according to FM need analysis and offer no discount tuition and offer no institutional aid based on merit or other non-need criteria. School’s NPC • Much more accurate EFC, including institutional variation in need analysis to project need -based awards. • Can project’s school merit aid • Integrates school’s actual awarding process. • Offers advanced guidance (text, skip logic) to users.

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