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.

1. Net Price Calculator:
Evaluation After Six Months
IACAC
May 2, 2012
Marc Geslani
Educational Manager
College Board
mgeslani@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 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
Department of Education
Net Price College Affordability
Calculators and Transparency
Reforming
Center Student Aid
Race To The
Top for Better
Information White
College
House
Affordability
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 and
Average 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 Aid
and 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 Families
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.”

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. Good
Advice
Makes the
Difference

18. 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.

19. 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.

20. 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

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