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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 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.
Citation preview
Net Price Calculator: Evaluation After Six Months
IACAC May 2, 2012
Marc Geslani Educational Manager College Board [email protected]
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
Driving Forces Behind NPC
Transparency Choice & Access
Financial Literacy
My Real Price (Not the Sticker Price)
Fit & Value
Reduce confusion & complexity
Provide “consumer” information
Control college costs
Race To The Top for College Affordability
Federal Intervention
“So let me put colleges and universities on notice: If you can't stop tuition from going up, the funding you get from taxpayers will go down.” President Barack Obama, State of the Union, January 2012
Net Price Calculators
Department of Education College Affordability
and Transparency Center
Consumer Financial Protection Bureau
Cost Comparison Worksheet
White House
College Scorecard
Better Information
Reforming Student Aid
White House College Tuition Meetings
Evolution – From EFC to NPC
Net Price
Expected Family Contribution
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.
Different Types of Calculators
Less data going in may mean less reliable answer coming out.
NPCs Differ Mainly on Complexity of Family/Student Input
Easier: Income ranges and net price expressed
as an average.
Complex: Specific income figures,
academic information, net price expressed
specifically
• 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)
NPCs that use Income Ranges and Average Awards
• 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
NPCs that Simulate Applying for Aid and Award Packaging
• 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
Texas Does It’s Own Thing
• 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
Apples, Oranges and Bananas
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.”
Counseling Students and Families
Are NPCs Being Used? Yes!
Month Visitors Reaching Net Price
Calculation
% Net Price Calculation
% entered via cb.org
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%
Unique Visitors to 300+ College Board NPCs
Are NPCs Being Used?
Month Visitors Reaching Net
Price Calculation
% Net Price 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%
Repeat Visitors to 300+ College Board NPCs
Federal Resources
College Navigator
Department of Education
College Affordability and
Transparency Center
Consumer Financial Protection Bureau
Cost Comparison Worksheet
White House
College Scorecard
Better Information
Other Resources
myfinancialfit.com
netpricecalculator.info
Good Advice Makes the Difference
What Students and Parents Need to Know about NPCs
1. 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.
What Students and Parents Need to Know 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.
What Students and Parents Need to 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
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