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C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
C20 Net Price Calculator: Evaluation after Six Months
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C20 Net Price Calculator: Evaluation after Six Months

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We will continue the discussion from last year’s session by reviewing the reception of Net Price Calculators and their impact on college decision-making.We will also look again at currently deployed …

We will continue the discussion from last year’s session by reviewing the reception of Net Price Calculators and their impact on college decision-making.We will also look again at currently deployed calculators noting the differences in methodological approach and technology. Finally, we will discuss whether NPCs are having their intended effect: to provide families better cost information earlier in the college selection process and opening a window on how colleges set their prices.

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  • 1. Net Price Calculator:Evaluation After Six MonthsIACACMay 2, 2012Marc GeslaniEducational ManagerCollege Boardmgeslani@collegeboard.org
  • 2. Overview• Driving forces behind push toward greater transparency & requirement to implement net price calculator• Institutional options in meeting net price calculator requirement; hopes and fears• Outreach opportunities and critical role of counseling in helping students and families use NPCs to make better decisions
  • 3. Driving Forces Behind NPC Transparency Reduce confusion & complexity Choice & Access Financial Literacy Provide “consumer” information Fit & Value My Real Price (Not the Sticker Price) Control college costs
  • 4. Federal Intervention “So let me put colleges and universities on notice: If you cant stop tuition from going up, the funding you get from taxpayers will go down.” President Barack Obama, State of the Union, January 2012 Department of Education Net Price College Affordability Calculators and Transparency Reforming Center Student AidRace To TheTop for Better Information WhiteCollege HouseAffordability College Consumer Financial White House Protection Bureau Tuition Cost Comparison College Meetings Worksheet Scorecard
  • 5. Evolution – From EFC to NPC Expected Family Contribution Net Price
  • 6. Legislated Definition of Net Price• Cost of attendance• …for an average first-year full-time student• …less the average of all need and merit-based federal, state, and institutional grant aid awarded to first-year, full-time students.
  • 7. Different Types of Calculators NPCs Differ Mainly on Complexity of Family/Student Input Complex: Specific Easier: Income ranges income figures, and net price expressed academic information, as an average. net price expressed specifically Less data going in may mean less reliable answer coming out.
  • 8. NPCs that use Income Ranges andAverage Awards• Federal NPC or the Voluntary System of Accountability (VSA)• Public schools, usually not providing up-front merit scholarships• Free to the colleges that choose to use them• Easier for families to use and complete• Lesser degree of accuracy due to: • Use of AVERAGING across income/EFC groups • (Prior) Prior Prior Year Data (calculator displays 10-11 but student enrollment is for 12-13)
  • 9. NPCs that Simulate Applying for Aidand Award Packaging• Inherently more accurate as there is no use of average figures. Each calculation is individual.• College Board and other third-party vendors providing these solutions.• Private and public flagships providing significant institutional/merit-based aid• The College Board (and other vendors) provide a special version of NPC for PROFILE schools
  • 10. Texas Does It’s Own Thing• The Texas Higher Education Coordinating Board has developed a Net Price Calculator for most schools in the state: 2-Year, 4-year, Public and Private.• Net Price is displayed as broad ranges
  • 11. Apples, Oranges and Bananas• Different Calculation Methods: • Average of what students like you received 2 or 3 years ago (Federal template, VSA) • Individual calculation based on specific figures you provided (FAFSA-like calculators) • Probable range of award you could receive based on information you provided (Texas calculator)• Different Results: • Net Price vs. Direct Cost vs. Out-of-Pocket Cost vs. Net Price After Other Aid
  • 12. Counseling Students and FamiliesThere is no uniform way thatinstitutions are required to displayresults so it is important to helpstudents interpret their results, payingparticular attention to the “appearanceof affordability.”
  • 13. Are NPCs Being Used? Yes! Unique Visitors to 300+ College Board NPCs Reaching % Net Price % entered Month Visitors Net Price Calculation via cb.org Calculation October 117,118 33,207 28% 51% November 154,045 43,285 28% 35% December 125,698 33,715 27% 30% January 170,612 51,280 30% 30% February 152,435 43,843 29% 29% March 149,785 34,790 23% 23% Total 869,693 240,120 28% 28%
  • 14. Are NPCs Being Used? Repeat Visitors to 300+ College Board NPCs Reaching Net % Net Price Month Visitors Price Calculation Calculation October 141,386 48,571 34% November 177,245 62,065 35% December 141,910 46,697 33% January 191,988 60,357 31% February 173,203 63,961 37% March 169,872 98,456 58% Total 995,604 380,107 38%
  • 15. Federal Resources Department of Education College College Affordability and Navigator Transparency Center Better Information Consumer Financial Protection White House Bureau Cost Comparison College Worksheet Scorecard
  • 16. Other Resources myfinancialfit.com netpricecalculator.info
  • 17. GoodAdviceMakes theDifference
  • 18. What Students and Parents Need to Know about NPCs1. Not all NPCs are the same. Typically the simpler the NPC, the less accurate.2. Timing is a factor.3. There is no uniform way that institutions are required to display results so it is important to help students interpret their results, paying particular attention to the “appearance of affordability.”4. If loans are subtracted from “net price,” students need to know that loans differ in cost and terms and conditions.
  • 19. What Students and Parents Need toKnow about NPCs – continued 5. Supplemental questions are important for scholarship and grant eligibility purposes. 6. Depending on which NPC an institution is using, the amount of time to complete the NPC will differ. 7. Advise students and parents not to “face to the bottom.” 8. Students should keep a copy of their NPC results for comparison purposes. 9. Make students aware that their NPC results are only as good as the accuracy of the data they enter.
  • 20. What Students and Parents Needto Know about NPCs - continued 10. Personal identifying information is not required; Student should be able to NPCs anonymously 11. NPCs will likely work best for:  Traditional wage earner families  Families without unusual circumstances 12. NPCs will not work as well for:  Divorced/separated families  Self-employed families  Families with special circumstances
  • 21. For More Information • Program site: • http://www.collegeboard.org/npc • “What Counselors Need to Know About Net Price Calculators” – by College Board staff • “Net Price Calculator: Challenges and Opportunities” by Joseph A. Russo, Director, Student Financial Strategies, University of Notre Dame • Student site: • http://netpricecalculator.collegeboard.org

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